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The cost of memory care isn’t cheap, and rates can fluctuate wildly, depending on location, support needs and residence amenities offered. The average monthly cost of memory care in the U.S. is a little under $7,000, with the average length of stay between four to 10 years, according to Princella Seymour, founder and CEO of Complete Elder Solutions. (That’s between $336,000-$840,000!)
However, she notes, there’s no hard and fast rule when it comes to the cost of memory care. “Memory care can vary from “$3,000.00 to $10,000 depending on the level of care and demographics,” says Seymour.
From the factors that influence rates to what’s included, here’s everything families need to know about the cost of out-of-home memory care.
Key takeaways
- Memory care in the U.S. averages about $6,160 per month, though costs can range from roughly $3,000 to $10,000 depending on location, level of care and room type. Because residents often stay four to 10 years, the total cost can add up to hundreds of thousands of dollars over time.
- The biggest factors affecting memory care pricing are location, whether the room is private or shared and the level of services required. Most communities include room and board, meals, help with daily activities, medication management, housekeeping and 24-hour supervision, but specialized services or upgrades may cost extra.
- Families typically pay for memory care through a mix of personal savings, long-term care insurance, Medicaid, veterans benefits or asset sales such as a home. Experts say planning early and understanding projected long-term care costs can help families build a realistic financial strategy before care is urgently needed.
What is the average monthly cost for memory care?
On average, the cost of memory care is $6,160 per month in the U.S., according to Dementia Care Central, a resource developed with funding from the National Institute on Aging. Memory care, it’s worth noting, is about $1,200 more per month than standard assisted living, due to staff training, increased security and more.
A more affordable memory care option, according to Mark Friedlander, owner of Senior Assisted Solutions in Virginia, is a “value-based community,” which, in short, focuses on the quality of specific care, as opposed to the number of services offered.
“In a value-based memory care community, a private room could cost around $5,000 per month and a semi-private room could cost $4,000 per month,” Friedlander notes. “Sometimes, families will start in a private studio and then transition to a semi-private room over time to save money.”
To get an idea of what standard residential memory care costs in your location, check out Dementia Care Central’s memory care state guide.
What factors influence memory care cost?
The three the biggest factors, per Seymour and Friedlander, that affect the cost of memory care are:
- Location.
- Type of room (private or semi-private).
- Services offered. “For instance,if a resident needs specialized therapy, per a doctor’s or caregiver’s request, that’s usually an additional cost,” says Seymour.
Another variable that affects what residents pay is whether the facility accepts Medicaid or long-term care insurance, explains Samuel Flaten, a financial planner with Narrow Road Financial Planning in Eau Claire, Wisconsin.
“A huge factor that influences cost is how the residence handles payment — specifically whether they’re private pay only or accept government-assisted reimbursement,” he says. “Some accept both, but even when that’s the case, rates are often inflated to account for slow or reduced payments from Medicaid or insurance companies.”
“This is why,” he continues, “people in the same building might be paying different rates — one using private funds, one on Medicaid and another navigating insurance red tape.”
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What’s typically included in the cost?
Here’s what’s generally included in the cost of memory care, which may be in the same building (but a different area) as assisted living:
- Room and board.
- Three meals per day plus snacks.
- Medication management.
- Assistance with activities of daily living (ADLs), such as dressing, bathing, walking, meals and toileting.
- Utilities.
- Cable/WiFi.
- Laundry.
- Housekeeping.
- 24-hour supervision and security.
- Nursing staff 24 hours a day.
- Daily in-house activities, such as exercise classes, arts and crafts and movie nights.
- Transportation (depending on the facility) to and from doctor’s visits.
“Care may be included in the base rate or it may be additional,” Friedlander notes.
Potential additional costs in memory care residences
In addition to what’s included in the base fee, there may be extra services residents can pay for. They may include:
- Salon services.
- Incontinence products.
- Certain outings.
- Specialized therapy.
- Transportation.
- Dietary-specific meals.
- Annual room and board increases.
- Increased level of care
How to pay for memory care
There’s no single way to pay for out-of-home memory care, and in most cases, residents pay through a combination of outlets. That said, here are a few ways folks pay for memory care, per Seymour, Friedlander and Flaten:
- Personal savings.
- Family member contributions.
- Government-funded programs, such as Medicaid.
- Veterans Assistance (Aide and Attendance) for veterans and surviving spouses.
- Long-term care policies.
- Assets (read: selling your home).
- Reverse mortgages.
- Retirement accounts.
Seymour adds: “There’s always room for negotiation. Ask about move-in specials and discounts when initially meeting with staff.”
“The key to planning ahead is understanding your likely care needs, knowing what facilities in your area actually cost — not just today, but what they’re projected to cost in 10 or 20 years — and then building that into your financial framework.”
— Samuel Flaten, financial planner
How to budget and plan over time for memory care
When it comes to any senior living plan, foresight — and not waiting until it’s time for care — is critical. “The key to planning ahead is understanding your likely care needs, knowing what facilities in your area actually cost — not just today, but what they’re projected to cost in 10 or 20 years — and then building that into your financial framework,” Flaten notes. “The cost of care has exploded in the past decade, and there’s no reason to expect that trend to slow down.”
Other planning tips from Seymour include:
- Planning with a financial advisor.
- Merging your care plan with a financial advisor and geriatric care manager to obtain current the cost of care and projected changes/increases.
- Being realistic when creating your budget.
- Exploring government benefits.
- Assessing the family support system.
A final note on the cost of memory care
When determining where you or a loved one is going to receive memory care, it’s important to choose a community your loved one will not only thrive in but that feels affordable in the long-run.
“Sometimes [a] community will work with families to accept a lesser amount if they have been living there for a certain amount of time,” notes Friedlander. However, in most cases, being able to afford less might result in having to downgrade your accommodations, such as from private to semi-private, he explains.
Put another way: Don’t go completely outside of your budget, but don’t skimp either. “This is one the most personal and emotional planning decisions families make,” Flaten says. “And it’s never just about the numbers.”
