Memory care is assisted living built for dementia, with secured units and trained staff, and it carries a premium to match. Medicare does not cover it.
This guide explains how to pay for memory care and which payers actually help. Standard assisted living already runs about $5,900 a month, and memory care typically costs more, so start with the cost, then read the payer that fits your situation.
What Memory Care Costs
Memory care provides a secured environment, higher staff ratios, and dementia-trained caregivers, on top of the meals, housekeeping, and daily help that come with assisted living. That added supervision and safety is why it costs more.
There is no separate national median published for memory care the way there is for assisted living, so the honest way to budget is to start from the assisted living figure and add a premium. Standard assisted living runs about $70,800 a year, roughly $5,900 a month, per the Genworth/CareScout 2024 Cost of Care Survey, the most recent national data. Memory care typically costs more than that base because of the specialized dementia care, with the premium varying by community and region. Like all long-term care, the price varies by state and metro area and has been rising faster than general inflation, commonly 1% to 12% a year. Get the real local rate for the specific community you are considering rather than relying on a national average.
How to Pay for Memory Care: The Five Payers
Memory care uses the same payer mix as assisted living. No single program covers it, so families combine private pay, Medicaid, VA benefits, and insurance.
| Payer | What It Does for Memory Care | Who Qualifies |
|---|---|---|
| Private pay | Covers the full bill: room, board, and dementia care, out of savings, income, and home equity | Anyone with assets or income to draw on |
| Medicare | Almost nothing. Does not cover room and board or ongoing custodial dementia care; covers only limited separately ordered skilled services | Anyone 65+ or on disability, but not for memory care itself |
| Medicaid | Pays for the care services (not room and board) mainly through HCBS waivers; some states add a room-and-board subsidy | Low income and assets; meets a care-need standard; waivers may have waitlists |
| VA Aid and Attendance | Adds monthly cash a veteran or surviving spouse can put toward memory care | Wartime veterans and surviving spouses who need daily help and meet income and asset limits |
| Long-term care insurance | Pays a daily or monthly benefit toward memory care, up to the policy limit | People who bought a policy and meet its benefit triggers |
Private Pay
Most families start by private-paying from Social Security and pension income, retirement savings, and assets. Because dementia care often lasts years, the house is frequently part of the plan: families sell it, rent it out, or tap the equity. See selling or renting the home to pay for care and home equity options for care.
A reverse mortgage can fund memory care for one spouse while the other stays in the home. Because memory care is pricier and longer than many families expect, private pay usually serves as a bridge to Medicaid. Planning that transition early, before assets run out, matters more here than almost anywhere.
Medicare and Memory Care
Medicare does not pay for memory care. This catches families off guard, so it is worth saying plainly.
Medicare covers short-term skilled care, not long-term custodial care. After a qualifying hospital stay it pays for up to 100 days in a skilled nursing facility, and it covers home health visits when a doctor orders skilled nursing or therapy. But the daily supervision, help with activities, and secured environment that define memory care are custodial, and Medicare does not pay for them, nor for the room and board. Medicare will still cover a person's regular medical needs, like doctor visits and a covered rehab stay, but never the memory care itself.
Medicaid and Memory Care Waivers
Medicaid is the largest public payer for long-term care, and for many families it is what makes memory care sustainable once savings run down. As with assisted living, Medicaid generally does not pay for room and board in a memory care community. What it pays for is the care services, mainly through Home and Community-Based Services (HCBS) waivers.
A few things to know:
- Waivers are not an entitlement. States can cap how many people a waiver serves, so waitlists are common. Apply early.
- Eligibility is means-tested. A single applicant generally needs countable assets under about $2,000 and limited income, with spousal protections for a married couple.
- The 5-year look-back applies. Medicaid reviews 60 months of financial records before the application, and gifts or below-market transfers can trigger a penalty period. See Medicaid estate recovery and Medicaid planning strategies, and talk to an elder law attorney before moving assets.
- Confirm the community participates. Not every memory care community accepts Medicaid waiver residents, and some accept it only after a period of private pay. Ask before you move in.
Because waiver names, coverage, and waitlists vary by state, check your state's Medicaid agency or your state's senior care guide.
VA Aid and Attendance and Insurance
If your loved one is a wartime veteran or surviving spouse, VA Aid and Attendance can add monthly cash toward memory care, and the money is unrestricted. For 2026 the maximum is about $2,424 a month for a veteran with no dependents, $2,874 for a veteran with one dependent, and $1,558 for a surviving spouse. Qualifying requires wartime service, a need for help with daily living, and net worth under the 2026 limit of $163,699; the VA applies its own 36-month look-back.
If your loved one bought a long-term care insurance policy years ago, it usually covers memory care, paying a daily or monthly benefit up to a limit. A dementia diagnosis with help needed on daily activities generally meets the benefit triggers. Read the daily maximum and the elimination period before you rely on it.
How to Pay for Memory Care: Build Your Plan
Memory care is long, costly, and emotionally heavy, so a clear funding plan matters. Work it in order:
- Price the specific community. Memory care carries a premium over assisted living, so get the real local rate.
- Inventory private resources. Income, savings, home equity, and any old long-term care policy.
- Check VA eligibility. Wartime service in the family can add hundreds a month.
- Plan the Medicaid transition early. Look at the waiver, the waitlist, and the spend-down math before assets are gone.
- Get help mapping it. An elder law attorney or care advisor can fit the pieces for your state.
For the full picture, start with how to pay for senior care and building a senior care funding plan.
Frequently Asked Questions
No. Medicare covers up to 100 days of skilled nursing after a qualifying hospital stay and some home health, but not the room, board, or custodial dementia care that define memory care. For memory care, families rely on private pay, Medicaid waivers, VA benefits, or long-term care insurance.
In most states Medicaid pays for the care services in memory care, not the room and board, mainly through HCBS waivers that can have waitlists. Programs vary by state, so check your state's Medicaid agency. The 5-year look-back applies to eligibility.
There is no separate national median, so budget from the assisted living figure of about $70,800 a year, roughly $5,900 a month, and add a premium. Memory care typically costs more because of the specialized dementia care, with the exact premium varying by community and region.
Memory care adds a secured environment, higher staff-to-resident ratios, and dementia-trained caregivers on top of standard assisted living, which runs about $5,900 a month. That extra supervision and safety is what drives the premium.
Yes. A veteran can receive VA Aid and Attendance, up to about $2,424 a month for a veteran with no dependents in 2026, and still qualify for Medicaid. The payers stack, though each has its own income, asset, and look-back rules.
Learn More
- How to Pay for Senior Care
- How to Pay for Assisted Living
- How to Pay for Nursing Home Care
- How to Pay for In-Home Care
- How Long-Term Care Insurance Works
- Using a Reverse Mortgage to Pay for Senior Care
- Build a Plan to Pay for Senior Care
- Medicaid Estate Recovery Explained
Find personalized help figuring out how to pay for memory care at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.