As we age, we all forget things from time to time. But when memory loss begins to interfere with everyday life, it may be a sign of cognitive decline or dementia for many older adults.
When memory problems become serious, it might be time to consider memory care, a specialized form of long-term care specifically tailored for individuals with Alzheimer’s disease, dementia and other memory impairments. It’s typically rendered in a stand-alone facility or in a unit within an assisted living facility or nursing home.
Although this type of specialized care is often necessary, the cost of memory care can be prohibitive.
What Is Memory Care?
Memory care is a type of dementia care, which is a broader term that includes in-home care and care rendered in other locations beyond a specialized memory care facility.
Some key features you’ll find in a memory care facility include:
— Staff trained to manage dementia-related behaviors
— Daily routines to reduce confusion and anxiety
— Enhanced safety measures to prevent wandering and elopement
— Therapeutic programs, such as music or sensory therapy, designed to stimulate cognitive function
[Read: Assisted Living vs. Memory Care: The Key Differences]
How Much Does Memory Care Cost?
Estimates of memory care costs can vary widely, from $5,000 to more than $13,000 monthly.
While the median cost of assisted living tops $6,200 per month, according to data from CareScout’s Cost of Care Survey, memory care tends to cost significantly more. U.S. News, using publicly available data from multiple sources to average memory care costs across the country, estimates the national average is $7,645per month.
This price hike — about 20% higher than standard assisted living — covers the enhanced security and specialized therapies and staffing that memory care provides.
The cost of memory care also tends to increase over time as a resident’s condition deteriorates and care needs rise.
[READ: How to Move a Parent With Dementia to Assisted Living]
Factors That Impact Memory Care Cost
Several factors can influence how much a particular memory care community charges for its services:
— Health needs. The more severe your loved one’s health needs are, the more care they’ll need and the more it will cost.
— Services provided. Many facilities structure their payment plans based on the quantity of services provided, so if you use more services, you’ll end up paying more per month.
— Location. Where in the U.S. the facility is based is one of the biggest factors influencing memory care cost. Facilities located in New York City, for example, are often much more expensive than their counterparts in smaller cities, such as Cleveland or Louisville, Kentucky, simply because the cost of real estate and the local standard of living is higher.
— Floor plans. Larger spaces with bigger floor plans may cost more than a more modest memory care unit.
— Specialized training. “Memory care training is required for all staff as they will, at some point, encounter residents in need of specialized care and will need to know strategies for interacting with individuals with dementia or Alzheimer’s,” explains Toni Lynn Davis, executive director of senior services with Monmouth Crossing Assisted Living and The Manor at CentraState Medical Center, part of Atlantic Health System in Freehold, New Jersey.
[READ: What to Expect From a Memory Care Facility]
What Memory Care Costs Include and Exclude
Each memory care facility offers its own distinct blend of services and amenities to residents. But generally speaking, most memory care facilities offer:
— 24/7 care
— Meals
— Assistance with activities of daily living, such as personal hygiene, toileting and bathing
— Medication management
— Safety protocols designed for people with dementia
— Memory support therapies and services
— Housekeeping and laundry services
— Activities and other opportunities for social interaction
Memory care costs typically don’t cover:
— Internet, cable and phone services
— Personal care supplies, such as toiletries and incontinence care products
— Personal grooming costs, such as barber, salon or spa services
Does Medicare Pay for Memory Care?
No, Medicare does not pay for most of the costs associated with memory care facilities.
However, for people who reside in a memory care facility, Medicare may cover certain elements of memory care, including:
— Cognitive assessments and care planning. Medicare typically covers diagnostic tools such as the Self-Administered Gerocognitive Exam, or SAGE test, especially when administered during an annual wellness visit. Dementia screenings may also be covered as separate cognitive assessments or care plan visits. In the latter setting, a diagnosis of cognitive impairment is typically required for the visit to be covered by Medicare, as that will qualify the visit as being “medically necessary.”
— Hospital stays or other health care services. If a person with dementia is hospitalized, Medicare will typically cover the cost of medical care for severe dementia symptoms provided during short-term stays in the hospital. Medicare will also cover care in a skilled nursing facility for up to 100 days following a qualifying hospital admission.
— Prescription drugs. Medicare covers dementia medications that are considered medically necessary, though patients will be responsible for their copays and coinsurance.
— Hospice care. If the individual with dementia has a life expectancy of less than six months, Medicare will cover the cost of hospice care.
How to Pay for Memory Care
Memory care can be expensive, so if you’re like most people, you’re probably wondering how much money you need and how you’ll be able to pay for it.
The average stay in a memory care facility can vary widely but is typically between two and three years. At a median cost of $7,645 per month, that means you’ll need roughly $183,000 to $275,000 to cover the costs of the average memory care stay.
But if your or your loved one’s dementia progresses slower than average, if you live in a more expensive region of the country or if you need more comprehensive care services, your financial needs can grow exponentially from that baseline.
Plan ahead and start saving early
Don’t wait to discuss how to pay for memory care.
Instead, start by making an honest assessment of what you can afford and begin saving on a monthly basis using these steps:
— List your income and current expenses.
— Identify all your assets and savings.
— Jot down your goals and assess how much money you’ll need to live the lifestyle you want in your later years.
— Figure out what’s realistic based on your current financial situation.
Working with a certified financial planner who has experience in senior care issues can help you get a good handle on your current situation and what you might be able to afford later on.
Planning ahead not only helps you be more prepared financially, but it can also help you prepare for the emotional aspects of the transition. Moving to a senior living community is a significant life change, so it’s important to take some time and to adjust to the idea, tour several facilities and meet current residents.
Researching the right memory care facility at the first signs of cognitive decline also allows your loved one a chance to be actively involved in the decision-making process, which can enhance their comfort with moving.
To that end, some communities offer short-term or trial stays, which can help the senior experience the environment and services before making a permanent move, notes Tina R. Sadarangani, a board-certified primary care nurse practitioner and assistant professor at New York University who specializes in the care of older adults.
While this may be more difficult to accomplish with a senior who needs memory care — establishing and sticking with a routine is often best for those experiencing cognitive decline — being able to try out an option in advance may be helpful in some situations.
Financing
For many people, financing options for memory care are limited to their own personal assets, such as the value of their home and any retirement funds, stocks or investments they own.
Because memory care facilities are typically structured as rental properties, taking out a mortgage on a memory care living space isn’t usually possible.
However, there are some other means that may be available to you depending on your situation:
— Selling your home outright and using the proceeds to pay for care
— Taking out a reverse mortgage in which you sell your home back to the bank in monthly installments, which can be applied to memory care needs
— Setting up a short-term bridge loan, which can free up cash quickly before your home sells
— Looking for community-based grants or other funding instruments you might qualify for
Medicaid
Once you’ve spent down your assets, you may become eligible for Medicaid, a joint federal-state health insurance program that provides benefits to certain low-income individuals.
In some cases, Medicaid may cover costs associated with memory care, but whether you can access this funding source depends on the rules of the state in which you reside and whether you meet strict qualifying requirements.
Applying for Medicaid can be complicated and can take a while. It’s best to confer with a Medicaid expert to guide you as you navigate the process.
Long-term care insurance
Long-term care insurance is a special policy you can buy that’s designed specifically to cover costs associated with senior living options, such as memory care.
“If you’re young and healthy, take a look at long-term care insurance,” says Tyler End, CEO and cofounder of Retirable, a retirement advisory company based in New York City.
However, older adults may not qualify for a plan, or it may be too expensive to be worthwhile, so this is one area where starting early can make a huge difference.
Private health or life insurance
Private health or life insurance policies may be useful for some seniors who need memory care. For example, some private health insurance plans may offer benefits that can help with the cost of memory care.
Some life insurance policies can be surrendered for their cash value tax-free. It’s best to speak with your insurance agent or a qualified financial advisor with expertise in helping seniors pay for care to determine which options are available to you and which will be most cost-effective in your situation.
Social programs
There are some social programs available to seniors in certain situations that may help pay for memory care:
— Social Security Disability Insurance. Some seniors with qualifying disabilities may be able to apply for SSDI benefits that could help defray the cost of some senior care options, including memory care.
— Veterans benefits. The Department of Veterans Affairs offers programs and funding intended to support military veterans and their families. Certain VA benefits, such as the Veterans Aid and Attendance benefit and Housebound allowance, may be available to qualified veterans or their spouses in certain situations.
— SHIP. State Health Insurance Assistance Programs offer health insurance counseling for people who are Medicare-eligible to help them find resources for care in their communities.
— PACE. The Program of All-Inclusive Care for the Elderly offers social and medical services to some older adults who need care.
Personal assets
End says that most of the people he works with plan to use the equity in their home to support them for as long as possible. For some individuals, however, there just isn’t enough money in the home to cover their costs. Plus, if you still have a mortgage outstanding on your home, you’ll have to pay that off, leaving you with a smaller chunk of money to put toward memory care.
Other personal assets you may be able to use include:
— Pensions
— Annuities
— Investments
— Other real estate holdings
Liquidating any of these personal assets can free up cash that you can use to pay for memory care.
How to Lower the Cost of Memory Care
Memory care facilities offer different options or tiers of care, and added services incur additional costs. To ensure you aren’t paying too much, ask:
— What exactly does this service entail and how might it benefit my loved one?
— How much does it cost? Does that cost seem reasonable and worthwhile?
— Does my loved one need this service now?
— Will my loved one need this service in the future?
— How will this service be rendered (i.e., are specialized staff involved)?
While additional services increase cost, they can also add enormous value. Therefore, it’s important to really weigh what’s best for your loved one, rather than simply opting for the least expensive plan with the barest level of care.
It can be a lot to manage for the average layperson, so you may want to consider working with a senior living advisor or a geriatric care manager who can help you navigate the process more easily. These professionals know about more affordable memory care options in your area. They may also be able to help you find grants and other resources that could offset some of the associated costs.
Building “a holistic care team with professionals, loved ones and partners can help you keep costs down where possible,” End notes.
More from U.S. News
How to Know Your Loved One Is Getting the Senior Care They’re Paying For
Senior Living Advisors: What They Do, Costs and How to Choose the Best Consultant
What Is a Continuing Care Retirement Community (CCRC)?
How Much Does Memory Care Cost? 2026 State-by-State Guide & Savings Tips originally appeared on usnews.com
Update 04/15/26: This story was published at an earlier date and has been updated with new information.