What Is the Cost of In-Home Dementia Care?

The cost of in-home dementia care depends on how much care they need, the caregiver’s level of experience and training, and where a senior lives.

Seniors and their caregivers often begin their search for long term care by asking “What’s the average cost?” However, understanding the median cost is more meaningful, as average costs are affected by extremely high or low prices. Median costs are more reflective of actual cost because they simply represent the middle of a range of numbers.

Level of dementia care needed

The level of care needed is a factor in the cost of in-home dementia care, and it depends on your loved one’s stage of dementia. The number of hours per day that care is needed also influences the cost.

Part-time in-home dementia care

A part-time schedule of 15 hours per week for in-home dementia care costs about $2,145 per month, or about $25,740 per year.^[01] If your loved one is in an early stage of dementia and needs minimal assistance, it may make sense to hire a caregiver on a part-time basis so family caregivers can take a break, go to their own doctor’s appointments, see friends, work, or take care of other tasks during business hours.

Full-time in-home dementia care

At 44 hours per week, a full-time schedule will cost about $6,292 per month, or $75,504 per year.^[01] A full-time, in-home caregiver is a reasonable option if you and other family caregivers must work full-time outside the home and can’t care for your loved one.

24-hour in-home dementia care

Round-the-clock care is the most expensive type of in-home dementia care, costing about $24,024 per month, or $288,288 per year.^[01] If your loved one is at a more advanced stage of dementia and can’t be left alone for any length of time, you may want to consider 24-hour care.

Location

Location greatly affects the costs of in-home dementia care. A community located in a large metropolitan area, near a desirable destination, or in an area with a higher cost of living is often more expensive. The national median cost of in-home dementia care is $33 per hour, with costs in half the states being higher and the other half being lower.^[01]

Let our care assessment guide you

Caregiver training

Dementia care requires specialized dementia care training and unique skills, which typically contributes to its higher costs. Know your loved one’s dementia symptoms, care needs, and expectations before screening home care providers. As you interview caregivers, ask:

• What has your experience been in caring for people living with dementia?
• Are you certified through a dementia care training program?

If you’re considering working with a home health company to find a caregiver for your loved one with dementia, ask these additional questions to ensure the company is trustworthy and reliable.

Families who care for their loved one at home often make safety modifications to reduce the risk of injury. The average cost of home safety modifications is between $3,000 and $15,000.^[02] In the early stages of dementia, basic and inexpensive accommodations, like removing trip hazards, installing grab bars, and leveling thresholds can reduce Alzheimer’s safety risks at home.

As dementia progresses, seniors may experience more mobility difficulties, disorientation, and wandering. Alarmed windows and doors may be needed to reduce the risks associated with wandering. Appliances with automatic shut-off mechanisms and mobility devices like stair lifts may also be necessary. Nonslip flooring, walk-in tubs or showers, and lever handles are other common changes that contribute to in-home dementia care costs.

“Since Grandpa didn’t want to move out of the home he’s been in for over 50 years, we had to make some changes,” says Richard, of Marion, Tennessee.

He and his wife have spent over $5,000 on home modifications since the diagnosis.

“We know that when things get worse, he won’t be able to live on his own anymore, so we’re also starting to make some changes in our house for whenever Grandpa needs to be here,” Richard notes.

Read more:8 Questions to Consider Before Moving a Senior Parent Into Your Home

While caring for a loved one with dementia may be rewarding, families may also face emotional and financial challenges. More than one in three dementia caregivers report significant emotional stress, and one in five express financial or professional stress.^[03]

Emotional and mental health impacts

Family caregivers who care for someone who has dementia report more anxiety and depression, higher levels of stress, and lower well-being.^[04] Balancing care for a senior loved one with other responsibilities such as a career, childcare, and personal relationships can lead to caregiver burnout.

Richard and Lizz are part of the sandwich generation, meaning they simultaneously care for an elderly loved one and a child or young adult. Nearly three-quarters of sandwich generation caregivers are employed full-time, and most spend three or more hours each weekday on elder care.^[03]

“We’re just fried a lot of the time,” Richard admits. “My wife does so much. Usually, she has to make a separate dinner plate for Grandpa since there are a lot of foods he can’t eat anymore. It can be hard getting the kids to do homework and also taking care of him.”

Professional and financial impacts

It’s not uncommon for family caregivers to miss work for a loved one’s doctor’s appointments, emergency calls, and days when other caregivers aren’t available. This can lead to poor performance, lost pay, and fewer vacation days. On the other hand, providing in-home care for a loved one can reduce professional care expenses and help forge bonds between family members.

Since the beginning of 2020, Richard’s been working from home. He often spends afternoons helping his grandfather with showers, trips to the bathroom, and other needs. This has helped his family cut the cost of professional in-home dementia care in half.

“I’m dreading going back to the office because so much of the money I make in those hours goes straight to caregiver costs, and I don’t get to spend time with him,” Richard explains.

Talk with a Senior Living Advisor

Families typically pay for in-home dementia care out of pocket using private funds such as savings or pension income.

Does Medicare cover in-home dementia care costs?

Medicare won’t pay for long-term, in-home dementia care services, but it will cover the cost of some dementia-related care such as cognitive assessments, medications, and care planning assistance. Medicare will also pay for in-home medical care for a short period of time.

Does Medicaid cover in-home dementia care costs?

Yes, Medicaid may cover some dementia care services that are provided in a person’s home.

Does private health insurance cover the cost of dementia care?

Different private health insurance plans — such as employer-sponsored health plans and Medigap insurance plans — cover different aspects of medical care for a senior with dementia. However, in-home care for dementia usually isn’t covered by private plans. Review your loved one’s policy for specifics.

Is home care for dementia tax deductible?

Yes, the cost of the medical portion of home care services is deductible on a federal income tax return when specific conditions are met, as detailed by the IRS. Tax deductible in-home care services may include assistance with activities of daily living (or ADLs) such as bathing, dressing, eating, and personal hygiene.

Read more:Everything You Need to Know About the Cost of Memory Care

The median cost of a residential memory care community is about $6,450 per month, or $77,400 per year.^[01] This is comparable to the cost of full-time in-home dementia care, and significantly less expensive than 24/7 in-home care.

While communities differ, residential memory care often includes on-site assistance with ADLs, incontinence care, meals, transportation, activities, and other services. Facilities are often designed with unique features that promote comfort, safety, and independence for residents with cognitive impairment.

Most seniors say they want to live in their own homes as they age.^[05] For people in the early stages of dementia, this is possible with the right amount of support and care. As dementia progresses, however, and your loved one’s needs change, you may need to consider a move to memory care. A Place for Mom’s Senior Living Advisors can help you and your family think through your unique situation and how best to move forward. They’ll share local memory care and in-home dementia care options with you — all at no cost to your family.