Dementia care is specialized support that helps people with memory loss stay safe, comfortable, and active in their daily lives. About 5% to 8% of all people over the age of 65 have some form of dementia, and this number doubles every five years above that age. It’s estimated that as many as half of the people 85 years of age and older have dementia.
You may be wondering, “How do you pay for dementia care?” as your loved one’s needs change over time. Dementia care often includes help with getting dressed, taking medications, supervision to keep them safe, and services that promote engagement and well-being.
In Cramerton, TerraBella Cramer Mountain helps families explore payment options like private pay, long-term care insurance, and programs to find what fits best.
Exploring Dementia Care Costs
Understanding the cost of dementia care is a key part of planning for your loved one’s future. In the United States, the total expense for caring for people with Alzheimer’s and related dementias is projected to reach $384 billion in 2025. On top of that, family members and friends contribute nearly $413 billion worth of unpaid care. This extensive support highlights the huge role that unpaid caregiving plays in dementia care.
The total economic burden of Alzheimer’s disease and related dementias, including medical expenses, long-term care, lost income, and declines in quality of life, is estimated to top $781 billion in 2025. Of this, medical and long-term care costs are about $232 billion.
In North Carolina, the average annual cost for a private nursing home room is around $108,000, with assisted living and memory care communities costing roughly $58,000 per year due to specialized support. Long-term care costs continue to rise statewide, underscoring the need for early financial planning.
Knowing these facts makes it clear why exploring all payment options, including private pay, long-term care insurance, Veterans benefits, and other programs, is essential. TerraBella Cramer Mountain helps families navigate these choices and create affordable, effective care plans tailored to their needs and budgets.
Private Pay Option
The most common way families pay for dementia care is through private pay, using personal savings, retirement income, or support from family. The estimated total lifetime cost of caring for someone with dementia is close to $400,000, with about 70% of these expenses covered by family caregivers through unpaid care and out-of-pocket spending.
Memory care communities often use one of two pricing models: an all-inclusive monthly fee or a tiered system based on the level of care required. The all-inclusive model is simpler and predictable, covering most services within one fee. The tiered model charges based on care needs, so costs may increase as your loved one’s condition changes.
It’s important to ask about what services are included in the monthly fee and watch for potential extra charges for things like medical supplies. TerraBella Cramer Mountain works closely with families to help understand these cost structures and create budgets that fit your financial situation.
Long-Term Care Insurance
Long-term care insurance offers a way to manage dementia care costs by helping cover expenses for care you may need as memory loss progresses. These policies often include services like 24-hour supervision, assistance with daily activities, and specialized memory support.
Coverage usually begins after you meet specific conditions, like needing help with daily tasks or showing cognitive decline, and after a waiting period, you must pay out of pocket. Some policies have limits on daily benefits or how long payments last, so understanding these details is important before choosing a plan.
Inflation protection can be added to keep benefits aligned with rising care costs over time. Many people find that having long-term care insurance provides peace of mind by giving them more financial options for care if dementia strikes.
Working with a financial advisor for long-term care planning can help you select a policy that best fits your expected needs and budget while avoiding surprises down the road.
Frequently Asked Questions
What Are Some Financial Options for Care Beyond Insurance?
You can use savings, retirement accounts, and the equity in your home as sources to help cover dementia care costs. Life insurance policies with cash value or riders are also financial options for care that might be converted to help pay for services. Some families sell or rent property to create funds for memory support services.
How Do You Pay for Dementia Care If You Don’t Have Long-Term Care Insurance?
If long-term care insurance isn’t an option, many families rely on personal savings or family contributions. Setting up a budget that outlines monthly expenses and possible future increases can help you manage paying for memory care.
What Should I Look for in Memory Support Services?
Look for communities or providers that offer specialized staff trained in dementia care. Find safe environments designed to prevent wandering and activities that promote cognitive engagement.
Can Veterans’ Benefits Help With Dementia Care Costs?
Veterans’ benefits can provide valuable financial support for families paying for memory care. These benefits may include allowances for home modifications, in-home care, or residential care, depending on eligibility. Contacting a veterans service officer can help you explore what financial options for care may be available.
How Early Should I Start Long-Term Care Planning for Dementia?
Starting long-term care planning as soon as a diagnosis is received gives you the most options and time to arrange finances. Early planning lets you explore all available payment methods, prepare legal documents, and select care services that match your loved one’s evolving needs.
Are There Resources To Help Reduce Dementia Care Costs?
Community organizations and non-profits sometimes offer respite care, support groups, and financial aid to ease care expenses.
Planning Your Next Steps With Confidence
So how do you pay for dementia care? Understanding this gives you the power to make thoughtful decisions for your loved one’s well-being.
At TerraBella Cramer Mountain, we offer a welcoming community designed specifically for memory care that combines expert support with a warm, homelike atmosphere. Our residents enjoy secure, beautifully landscaped grounds, personalized care plans, and engaging programs that focus on dignity and comfort.
Schedule a tour with us today to see firsthand how TerraBella Cramer Mountain can provide the support and peace of mind you deserve.
