The Financial Costs of Alzheimer’s Care: Planning for the Future

The financial costs of Alzheimer’s care can vary greatly depending on a number of factors, including the stage of the disease, the type of care needed, and where you live. According to the Alzheimer’s Association, the average annual cost of care for a person with Alzheimer’s or other forms of dementia is $341,840 for a private room in a nursing home, $51,600 for a home health aide, and $48,612 for an adult day health care center. These costs can quickly deplete savings and impact the financial well-being of both the person with Alzheimer’s and their family.

There are several ways to plan for the financial costs of Alzheimer’s care:

• Start planning early: Before a diagnosis of Alzheimer’s, it’s important to start thinking about long-term care and how to pay for it. This may include purchasing long-term care insurance or setting aside savings for future care needs.
• Meet with a financial planner: A financial planner can help you develop a plan to pay for care and make sure your assets are protected. They can also help you understand the various government programs that may be available to help pay for care.
• Consider Medicaid planning: Medicaid can help pay for long-term care, but it has strict income and asset limits. Medicaid planning can help you protect your assets while still qualifying for Medicaid.
• Create a power of attorney: A power of attorney allows someone you trust to make financial decisions on your behalf if you become unable to do so. This can be especially important if you develop Alzheimer’s or another form of dementia.

There are several government programs that may be available to help pay for Alzheimer’s care:

• Medicare: Medicare can help pay for some medical expenses related to Alzheimer’s, but it does not cover long-term care.
• Medicaid: Medicaid can help pay for long-term care, but it has strict income and asset limits. To qualify for Medicaid, you may need to engage in Medicaid planning to protect your assets.
• Veterans benefits: If you or your loved one is a veteran, there may be VA benefits that can help pay for Alzheimer’s care.
• Social Security Disability Insurance (SSDI): If you or your loved one is under the age of 65 and has a work history, they may be eligible for SSDI benefits.

Long-term care insurance is a type of insurance that can help pay for long-term care, including Alzheimer’s care. It typically covers services such as nursing home care, home health care, and adult day care. The cost of long-term care insurance varies depending on factors such as your age, health status, and the amount of coverage you need. It’s important to shop around and compare policies before purchasing long-term care insurance.

There are several other ways to reduce the financial costs of Alzheimer’s care:

• Consider in-home care: In-home care can be less expensive than nursing home care or assisted living, and it allows the person with Alzheimer’s to stay in their own home.
• Get help from family and friends: Family and friends can provide respite care, help with daily tasks, and provide emotional support.
• Look for community resources: There may be community resources available, such as support groups, adult day care centers, and respite programs, that can help reduce the financial burden of Alzheimer’s care.