Medicare Memory Care Coverage

When a loved one begins to show signs of cognitive decline, families are thrown into an emotional and logistical whirlwind. They must delicately balance care, safety, and long-term planning all at once.

Suppose you’re caring for your aging parent, spouse, or family member who no longer remembers how to get home from the corner store. As their condition worsens, you’re faced with an urgent and decisive question: “How will I pay for the specialized care my loved one needs?”

Memory care is one of the fastest-growing health needs in the U.S.,¹ with millions of families and healthcare planners facing its challenges. While Medicare plays a vital role in supporting older adults, its coverage for memory care is not always well understood. Clarity about what Medicare does and does not cover can be the key to making informed, compassionate choices and may be the difference between feeling overwhelmed and feeling prepared.

What is Memory Care?

Memory care is a specialized type of long-term care designed to meet the unique needs of individuals living with Alzheimer’s disease, dementia or other cognitive impairments. It provides a safe, structured environment with routines that help reduce stress, along with staff trained specifically in caring for those with memory loss.

Memory care provides critical support as you manage that loss while trying to ensure the senior’s safety and comfort. Unlike general senior care or assisted living, memory care facilities focus on personalized support for cognitive challenges. Services often include 24/7 supervision, secured spaces to prevent wandering, memory-enhancing therapies and help with daily tasks like bathing, eating and medication management.

Does Medicare Pay for Memory Care?

Yes and no. Original Medicare covers some medical services related to memory care,² but it doesn’t pay for long-term care like assisted living or daily personal help. For caregivers, understanding this distinction can shape the kind of support and coverage you seek.

What’s Covered

• Medicare Part A: Covers inpatient care in a hospital, hospice care and short-term skilled nursing facility (SNF) care, following a qualifying hospital stay, which could prove beneficial if a person with dementia needs rehab or medical monitoring post-hospitalization.
• Medicare Part B: Covers doctors’ visits, lab tests, diagnostic imaging and some outpatient treatments. This includes visits to neurologists and psychiatrists who help manage dementia-related symptoms.
• Medicare-covered dementia assessments and screenings: Medicare Part B covers a cognitive assessment during your annual wellness visit and additional testing as needed.
• Coverage for skilled nursing care post hospitalization: After a hospital stay of at least three days, Medicare Part A may cover up to 100 days of skilled nursing care, including memory-related care needs, if medically necessary.

Medicare Advantage plans (Part C) must cover everything Original Medicare covers, including medical services related to memory care. Medicare supplement insurance plans work alongside Original Medicare to help cover out-of-pocket costs like Part A and Part B coinsurance.

What’s Not Covered

• Long-term personal care: Ongoing help with daily activities like bathing, dressing, eating or using the bathroom, whether at home, in assisted living or in a memory care facility.
• Assisted living or residential memory care facility costs: Room and board, supervision and personal care services in specialized memory care communities are considered custodial care and are not paid for by Medicare.
• 24/7 supervision or in-home care: Services like live-in aides, home health aides (beyond limited skilled needs) or round-the-clock monitoring are not covered unless part of a short-term, medically necessary home health plan.
• Non-medical services: Adult day care, housekeeping, transportation and meal services are typically excluded unless provided under a separate benefit or program (such as Medicaid or a Medicare Advantage plan with added benefits).

Alternative Options to Pay for Memory Care

Other options may be available to offset costs associated with memory care, including:

• Medicaid: A state and federally funded program that may cover long-term memory care for those with limited income and assets, including nursing home care and some home- or community-based services.
• Long-term care insurance: A private insurance policy that can help pay for memory care services at home, in assisted living or in a nursing facility.
• Veterans Affairs (VA) benefits: Veterans and their spouses may qualify for memory care support through VA benefits, including Aid and Attendance or VA-run long-term care programs.
• Life insurance conversions or settlements: Some life insurance policies can be sold or converted into cash or long-term care benefits to help cover memory care costs.
• Out-of-pocket costs and planning ahead: Many families use personal savings, retirement income or the sale of assets (such as a home) to pay for memory care when other options aren’t available.

Each option can help cover the expenses of memory care. Understanding how it differs from nursing homes can guide you to the place that best supports your loved one.

Memory Care vs. Nursing Homes: What’s the Difference?

Choosing how to pay for memory care is just one piece of the puzzle. When deciding where someone with cognitive decline should receive care, it’s important to understand the differences between memory care and nursing homes.

Services

• Memory care: Offers 24/7 supervision, structured routines, dementia-trained staff, secure environments and activities tailored to cognitive support. It also provides specialized support for daily activities, medication management and personalized assistance for individuals with memory loss.
• Nursing homes: Services in nursing homes provide 24/7 medical and personal care, often for individuals with chronic illnesses, disabilities or post-hospital recovery needs. Care often includes skilled nursing, rehab services and assistance with daily tasks.

Costs

• Memory care: Costs for memory care vary by state and facility. Nationally, the median cost is $7,785 monthly³.
• Nursing homes: The costs vary by state and facility for nursing homes. Nationally, the median cost is $10,965 monthly for a private room. The median cost for a semi-private room nationally is $9,555 monthly⁴.

Medicare Coverage

• Memory care: Medicare does not cover long-term memory care services like assisted living or personal care. It does cover medical services (e.g., cognitive assessments, doctor visits and short-term skilled nursing).
• Nursing homes: Medicare covers up to 100 days of skilled nursing care after a qualifying hospital stay, but does not cover long-term custodial care.

Understanding the distinction between memory care and nursing homes can help caregivers decide which place is best place for their loved ones to receive care.

When Should You Consider Memory Care?

Memory care is often the best option when someone with Alzheimer’s or another form of dementia needs a secure setting, specialized support and cognitive-focused care, but doesn’t require 24/7 medical treatment. If someone needs both memory support and 24/7 medical care, a skilled nursing facility or memory support unit in a nursing home is typically the best option.

This decision often follows a period when home care is no longer safe or sustainable, and caregivers are overwhelmed from trying to manage it on their own. Increased confusion, wandering or missed medications may be signals. Other signs such as agitation, aggression, frequent falls or unmanaged health issues often require a more secure, specialized environment.

When caregiving becomes emotionally or physically overwhelming, memory care can provide relief and ensure professional, 24/7 support.

Medicare Coverage for Memory Care FAQs

Q1. Does Medicare pay for memory care in assisted living facilities?

No, Medicare does not cover memory care provided in assisted living facilities. While Medicare may cover certain medical services, such as doctor visits or prescribed therapies, it does not pay for room, board or personal care in memory care or assisted living settings. These expenses are considered custodial care and must be paid out of pocket or covered by other means, such as long-term care insurance.

Q2. Will Medicare pay for home health care for dementia patients?

Yes, but only under limited medical conditions. Medicare may cover short-term home health care for dementia patients if it’s prescribed by a doctor and delivered by a Medicare-certified agency. This includes services such as skilled nursing care, physical therapy or speech-language pathology. However, non-medical care like help with dressing, bathing or cooking is not covered.

Q3. How can I get financial help for memory care?

Financial assistance may come from Medicaid, long-term care insurance or veterans benefits. If the individual qualifies, Medicaid may cover the cost of memory care. Veterans may also be eligible for Aid and Attendance benefits. For those planning ahead, long-term care insurance is one of the most reliable ways to cover future memory care expenses, whether at home or in a facility.

Q4. How much does Medicare pay for Alzheimer’s care?

Medicare covers 80% of approved medical care for Alzheimer’s, including doctor visits, tests, hospital stays, therapies and short-term skilled nursing. It does not cover long-term support like residential memory care, adult day care or in-home help.

Q5. Does Medicare pay for dementia care?

Yes: Medicare covers medical services related to dementia, including cognitive assessments, outpatient mental health care, prescription medications and limited skilled nursing after a hospital stay.
No: It does not cover non-medical support such as full-time supervision, memory care housing or help with daily personal care.

Sources

¹ NIC.org. Web page: Memory Care Analysis. Retrieved November 19, 2025 from https://www.nic.org/blog/memory-care-an-in-depth-analysis-of-the-sectors-standing-and-dynamics/

² NCOA.org. Web page: Local Care. Retrieved August 1, 2025 from https://www.ncoa.org/article/does-medicare-cover-memory-care-a-comprehensive-guide/

³ SeniorLiving.org. Web page: Memory Costs. Retrieved October 10, 2025 from https://www.seniorliving.org/memory-care/costs/

⁴ SeniorLiving.org. Web page: Nursing Home Costs. Retrieved October 10, 2025 from https://www.seniorliving.org/nursing-homes/costs/

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