Planning Ahead
Evaluating Ability
Legal Planning
Paying for Care
Tax Deductions and Credits

Paying for Care	Prev Next
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Paying for care is another concern after an Alzheimer's diagnosis. To plan a long-term budget, list the costs you might face in the future. Possible expenses include:

• treatment for dementia
• treatment for other medical problems, such as high blood pressure
• prescription drugs
• personal care items
• adult day care
• in-home care
• full-time residential care

In addition to planning a long-term budget, discuss how you will meet everyday financial responsibilities, such as:

• paying bills
• arranging for benefits
• making investments
• preparing tax returns

Payment sources

Many different sources can help pay for dementia care. These sources include insurance, retirement benefits, personal savings, government assistance and community support.

Insurance:

• the government programs Medicare and Medigap
• disability insurance from an employer-paid plan or personal policy
• a group employee plan or retiree medical coverage
• life insurance
• long-term care insurance

Retirement benefits:

• individual retirement accounts (IRAs)
• employee-funded retirement plans, such as a 401(k), 403(b), and Keough

Personal savings and assets:

• stocks
• bonds
• savings accounts
• real estate
• personal property, such as jewelry or artwork

Government assistance:

• Social Security Disability Income (SSDI) for workers under age 65
• Supplemental Security Income (SSI)
• Medicaid
• Veterans Benefits
• tax deductions and credits such as the Household and Dependent Care Credit


To see if you may be eligible for a variety of governmental programs, check BenefitsCheckUp.

Community support:

• respite care
• support groups
• transportation and meal delivery

Getting Medicaid
A government program called Medicaid offers health care aid to low-income people. Medicaid also covers most nursing home care. In some states, Medicaid helps pay for assisted living services.

Benefits: Each state decides how much Medicaid will pay for nursing facility care. These payments cover room, board, nursing care, and social activities.

Eligibility: Medicaid covers nursing home care for people who meet certain state requirements.

How to apply for Medicaid: For an application, contact your local Department of Welfare or Department of Health. Medicaid is based on financial need. So, you will be asked to supply information, including:

• where you live
• family members
• how much money you make
• property
• belongings
• savings
• investments
• medical expenses

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