Everyone forgets things from time to time. For many older adults, however, cognitive decline and dementia can become problematic later in life. These conditions don’t just affect memory, but often, the care a person with such issues receives is called memory care.
Memory care is a specialized form of long-term care specifically tailored for individuals with Alzheimer’s disease, dementia and other memory impairments. It can be a stand-alone facility or a unit within an assisted living facility or nursing home.
While memory care facilities offer many of the same services as a standard assisted living community, for instance, they also provide “a secure environment with structured activities aimed at supporting cognitive function and enhancing quality of life,” explains Esther Cromwell, founder and CEO of Avendelle Assisted Living in Raleigh, North Carolina.
Some key features you’ll find in a memory care facility include:
— Specialized staff trained to manage dementia-related behaviors
— Daily routines to reduce confusion and anxiety
— Enhanced safety measures to prevent wandering
— Therapeutic programs designed to stimulate cognitive function
Because memory care offers this higher level of specialized care, it means memory care almost always costs more than traditional assisted living.
What Is the Average Monthly Cost for Memory Care?
Estimates of memory care costs can vary widely, from less than $4,000 to over $10,000 monthly depending on several factors.
While the median cost of assisted living tops $5,350 per month, according to data from Genworth Financial’s 2023 Cost of Care Survey and Dementia Care Central, memory care tends to cost more. December 2023 data from the National Investment Center, a nonprofit that tracks the senior care industry, puts the average initial rate for a memory care unit at $7,899 monthly, or nearly $95,000 annually.
Factors that determine the cost of memory care
Several factors can influence how much a particular memory care facility 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 naturally, 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 cost. For example, facilities located in New York City 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 in Manhattan than in some other cities.
— Floor plans. Larger spaces with bigger floor plans may cost more than a more modest memory care facility.
[Signs It’s Time for Memory Care]
What Memory Care Costs Include and Exclude
Each memory care facility will offer 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 Alzheimer’s’ disease or other forms of dementia
— Specialized memory support therapies and services, such as music therapy
— 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
[SEE: Early Signs of Dementia.]
Does Medicare Pay for Memory Care?
Unfortunately, Medicare does not pay for most of the costs associated with memory care facilities, says Gregg Ratkovic, chief business officer with eHealth Inc., a health insurance broker and online resource provider headquartered in Santa Clara, California.
However, for people who reside in a memory care facility, Medicare may cover these elements of memory care:
— Cognitive assessments, like the SAGE test
— Hospital stays or other health care services
— Prescription drugs
[Read: How to Know Your Loved One Is Getting the Senior Care They’re Paying For]
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 roughly $7,900 per month, that means you’ll need about $190,000 to $285,000 to cover the costs of the average memory care stay.
But if you or your loved one fares better 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
The earlier you can start planning and saving, the better. If you haven’t already started preparing for health care needs and expenses for retirement, there’s no time like today to get started.
Make 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 monies saved.
— 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,” Cromwell says. “Moving to a senior living community is a significant life change, and having time to adjust to the idea, tour facilities and even meet current residents can make the process smoother and less stressful.”
What’s more, “early planning fosters a collaborative approach, allowing the senior to be actively involved in the decision-making process, which can enhance their comfort and satisfaction with the move,” she explains.
And 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 NYU 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. Ask whether the facility you’re considering offers a trial period or another means of helping you feel more secure in your decision before signing on the dotted line for longer-term care.
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, life insurance policies, stocks or investments they own.
Because memory care facilities are typically always structured as rental properties, taking out a mortgage on a memory care living space isn’t usually an option.
However, there are some other options 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, costs associated with memory might be covered by Medicaid, 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 (Social Security disability insurance, Veterans Affairs, SHIP, PACE)
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 SSI 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 & Attendance Benefits and Housebound Allowance, may provide between $1,000 and $2,000 per month to qualified veterans or their spouses in certain situations.
— SHIP. State Health Insurance Assistance Programs offers 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 (pensions, annuities, investments, real estate)
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 can get expensive quickly because of the specialized services provided and the additional training staff members may receive.
“Understanding these differences is crucial for families as they decide on the most appropriate care setting for their loved ones, ensuring they receive the necessary support and quality of life they deserve,” Cromwell says.
In other words, there can be a big value in these additional services and costs, so just opting for the least expensive plan with the barest level of care is probably not the best way to lower the cost of memory care.
Instead, consider working with a senior living advisor or a geriatric care manager who can help you navigate the process more easily, as 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.
As End notes, building “a holistic care team with professionals, loved ones and partners can help you keep costs down where possible.”
Explore Top-Rated Memory Care Facilities with U.S. News
Start your search for top-rated memory care facilities near you with U.S. News’ Best Memory Care Communities 2024 ranking. This list includes 3,500 communities across the country and is based on more than 400,000 survey responses from residents and family who’ve benefited from the services and support these communities provide.
Start your search for the right memory care center for your needs today to find and access the best care near you.
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How Much Does Memory Care Cost? originally appeared on usnews.com
