Caring for a loved one with dementia can be emotionally taxing and expensive. If your loved one requires memory care — such as room and board at a memory care facility — their treatment can rack up a hefty health care bill.
The high cost of living at a memory care facility is a “major barrier” for those who need to transition from independent living, says Dr. Lisa Gibbs, chief of geriatric medicine and gerontology at UC Irvine in Orange, California.
While some memory-related medical needs may be covered by Medicare, it doesn’t pay for people to stay at a memory care facility.
[READ: Signs It’s Time for Memory Care]
What Is Memory Care?
Memory care refers to a type of senior care setting that provides specialized care for people with Alzheimer’s and other forms of dementia along with memory issues related to Parkinson’s disease, stroke or another condition.
Some memory care facilities are connected to nursing homes, personal care homes or assisted living facilities. Some hospitals or rehab facilities have a memory care floor.
“Memory care isn’t just more assisted living,” says Shannon Feick, owner of Senior Helpers of Cincinnati in Cincinnati. “It’s a secured environment staffed by caregivers trained specifically in dementia care techniques.”
At a memory care facility, your loved one will receive a variety of support, including 24-hour supervision, daily programming and help with their activities of daily living. This includes assistance with dressing, bathing, grooming and eating.
Make sure to ask what memory care includes when you consider facilities.
“‘Memory care’ is not a federally standardized term,” says Chicago-based Cory Fosco, author of “The Question of When: A Practical Guide to Knowing when It’s Time for Assisted Living, Memory Care, or Skilled Nursing.” “What it includes can vary from one community to another.”
[READ: The True Cost of Aging: A 2026 Budget Comparison of Senior Living and Aging in Place Options]
Medical Care vs. Custodial Care
Many memory care interventions are seen as custodial services, which is the non-medical assistance with activities of daily living. They are geared toward improving the person’s overall quality of life and safety, as opposed to curing an injury or disease.
Medicare will not pay for custodial care at a nursing home if custodial care is the only type of care a person is receiving. This can be frustrating to deal with if your loved one is in need of memory care, which largely involves custodial-type services.
What Original Medicare Covers for Alzheimer’s and Dementia
Care coverage at a memory care facility will differ depending on the type of Medicare. Here’s a breakdown by Medicare type.
| Medicare Part | What It Covers (Memory Care Related) |
| Part A (Hospital) | Up to 100 days of skilled nursing care (after a 3-day hospital stay), hospice care |
| Part B (Medical) | Cognitive assessments, diagnostic tests, outpatient therapy, 80% of approved infusion drugs |
| Part C (Advantage) | Optional extras like caregiver support, adult day care or meal delivery |
| Part D (Drugs) | Approved prescription medications for symptom management |
Medicare Part A coverage for inpatient stays and skilled nursing treatments
Medicare Part A is often called hospital insurance. It covers some inpatient stays and skilled nursing treatments for dementia under specific circumstances. This includes coverage for stays at a skilled nursing facility for 100 days or less, if this is after a qualifying three-day inpatient stay at a hospital.
Dementia and memory issues on their own don’t qualify as skilled nursing-eligible diagnoses, says Dr. Ali Khan, chief medical officer of Medicare at Aetna/CVS Health.
Medicare Part A also may cover hospice services, which could be provided where someone lives including in a memory care facility.
Medicare Part B for cognitive assessments, doctor visits and infusion drugs
Medicare’s Part B is thought of as medical insurance, and it will cover some of the care received at a memory care facility.
This includes:
— Diagnostic testing
— Doctor visits
— Durable medical equipment (like a hospital bed or a wheelchair)
— Lab work
— Some outpatient therapies, like occupational therapy or physical therapy
“If a person lives in memory care and sees a doctor, needs lab work or receives outpatient medical services, those services may fall under Part B,” Fosco says.
Part B also covers 80% of the cost of newer Alzheimer’s infusion drugs like donanemab or lecanemab, which may help delay Alzheimer’s symptoms. Patients are responsible for the additional 20% and any other deductibles. To qualify for coverage for these drugs, patients must be part of a Centers for Medicare and Medicaid services registry that collects clinical data about the drug. The out-of-pocket cost for patients can run upwards of $5,000.
Medicare Part D prescription medications for symptom management
Part D of Medicare helps to pays for prescription medications. Coverage kicks in after meeting a deductible, which is a maximum of $615 for 2026. You may have to make a copayment for medications. This varies according to the Part D plan.
How Medicare Advantage (Part C) Impacts Memory Care Costs
Some Medicare members also have Medicare Part C, also known as Medicare Advantage. This provides extra coverage for medical costs not covered by Medicare parts A, B and D.
Medicare Part C is offered through private insurers. It must cover what original Medicare covers and typically goes beyond that.
Although Medicare Advantage usually doesn’t cover room and board at a memory care facility, but it may provide other coverage that includes:
— Caregiver support programs
— In-home support
— Meal delivery
If someone is living in a memory care facility, they may not need these extra services. It’s always best to ask about plan coverage rather than assume what’s covered.
How Much Does Memory Care Cost Out-of-Pocket?
U.S. News, using publicly available data from multiple sources to average memory care costs across the country, estimates the average cost of memory care is $7,645 per month.
“It typically costs 15% to 25% more than standard assisted living because of added staffing and security,” Feick says.
Memory care amenities — such as if residents have a roommate or a single room or if community amenities like swimming pools or beauty salons are available — can skew prices from the average.
What Medicare Won’t Pay for in a Memory Care Facility
Medicare does not cover the costs of room and board in a memory care facility.
“This is the part families most often misunderstand,” Fosco says. “Medicare may cover medical care, but it doesn’t pay for the long-term residential memory care bill.”
It also does not cover the cost for assistance with activities of daily living, such as help with bathing, dressing or eating.
Alternative Ways to Pay for Memory Care Services
If you have a loved one who requires a memory care facility, there are a few alternative ways to pay for services if you don’t have the funds easily available:
— Family contributions
— Life insurance conversion, which involves a life settlement or accelerated death benefit to free up cash
— Long-term care insurance if purchased in advance
— Obtaining funds through your home, including via home equity, selling the home or a reverse mortgage for those age 62+
— Retirement income
— Savings
— The use of Veterans Administration aid for veterans or surviving spouses.
— Medicaid after asset spend-down
Make sure to double check what Medicaid covers in your state when it comes to memory care. An elder law attorney or a certified Medicaid planner can help you better understand the idea behind spending down assets to qualify for Medicaid.
“Start the financial and facility conversation the moment there is a dementia diagnosis, not when a crisis forces the issue,” Feick advises. “Families who plan ahead have far more options and far less stress when the placement actually happens.”
Although it’s not always possible to prevent dementia, staying on top of health screenings while you’re younger, including hearing and vision screens, can help you and your family avoid extra memory care costs in the future, Khan says.
Purchasing long-term insurance when you’re in good health and in your late 50s or early 60s can help cover the costs of memory care if you ever need it.
Your state’s State Health Insurance Assistance Program is a good resource for free Medicare counseling, Fosco adds.
FAQs
More from U.S. News
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Does Medicare Cover Memory Care? originally appeared on usnews.com
Update 07/21/26: This story was published at an earlier date and has been updated with new information.
