One of the first questions families ask when exploring memory care is, “How do people afford this?”
It’s an important question and the answer often looks a little different for everyone.
As Atria Senior Living shared in a recent article featuring elder law attorney Greg Piede, Esq., early financial planning can relieve a great deal of stress later on. We see that every day when helping families find the right care options- preparation makes all the difference.
Here’s an overview of the most common ways families help cover the cost of memory care, along with a few considerations to keep in mind.
Long-Term Care Insurance
Long-term care insurance is specifically designed to cover services that regular health insurance does not, including memory care and assisted living. Each policy is unique — some focus on in-home care while others cover residential communities — so reviewing the details carefully is key.
If your loved one already has a policy, check whether it includes coverage for:
- Assisted living or memory care communities
- Daily care limits (the maximum amount reimbursed per day)
- Elimination periods (the waiting period before benefits begin)
Understanding these terms upfront helps you plan for any out-of-pocket costs before moving forward.
Medicare, Medicaid, and Health Insurance
Many families are surprised to learn that Medicare does not cover room and board in a long-term care or memory care setting. It can, however, help pay for medical necessities — like doctor visits, prescriptions, or short-term rehabilitation following a hospital stay.
Depending on income and assets, Medicaid may help with some long-term care expenses, though eligibility varies by state. An elder law attorney or care advisor can help you determine whether your loved one qualifies and guide you through the application process.
Veterans Benefits
For veterans and their spouses, the VA Aid and Attendance benefit can be a tremendous resource. While the approval process is often lengthy, once approved, the VA can reimburse past memory care expenses.
If your loved one served during wartime and needs help with daily living activities, it’s worth exploring this option early, since retroactive benefits may apply.
Disability Benefits
For individuals diagnosed with dementia before retirement age, Social Security Disability Insurance (SSDI) may offer financial assistance. Applying as soon as a diagnosis is confirmed can help expedite access to support.
Private Pay and Asset Planning
Many families use a combination of savings, pensions, and home equity to pay for care. Selling or renting a family home, or using proceeds from investments, can help bridge financial gaps.
Before taking any major steps, it’s wise to consult a financial advisor or elder law attorney to ensure long-term protection of assets. Their guidance can help balance current care costs with the family’s broader financial goals.
Planning with Confidence
There’s no single “right” way to pay for memory care — but there are options. The key is understanding what’s available, asking questions early, and creating a plan that gives your loved one the quality of life they deserve.
At Assisted Living Connections, our advisors work with families every day to navigate these financial decisions and connect them with trusted communities across Ventura and Los Angeles Counties. Our placement services are always free, and we’re here to help you make informed, confident choices.
This article was inspired by Atria Senior Living’s “Legal and Financial Planning for Memory Care”.
Need FREE help exploring options? Call us at (888) 880-1811.
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