Alzheimer’s disease is progressive. This means symptoms like memory loss, confusion, and communication issues get worse over the years.
When you care for someone with Alzheimer’s disease, this not only takes an emotional toll, but a financial one as well.
Recently, total health care costs for Alzheimer’s treatment and care in the United States topped out at $305 billion. After insurance and other financial support, U.S. families pay an average of $11,000 in out-of-pocket Alzheimer’s-related expenses every year. That’s almost five times higher than care costs for seniors without Alzheimer’s.
Most people live 4 to 8 years after an Alzheimer’s diagnosis, but some can live as long as 20 years. This makes it important to plan ahead. But know that your plan will change as the disease progresses.
The Cost of Care
Each one of the millions of people living with Alzheimer’s disease right now has a different situation. Maybe many family members can team up to tackle your loved one’s financial needs. Maybe you’ll shoulder this alone. If possible, bring your loved one’s support system together to discuss a care and financial plan for the short and long terms.
Here’s a range of costs you may have as the disease progresses:
- Doctor visits and copays related to diagnosis, treatment, symptom management, and follow-up visits
- Prescription and over-the-counter medications
- Health and personal care supplies
- Home safety-related expenses, if your loved one wanders
- Adult day care services
- In-home care services
- Full-time residential care services
Financial Resources
Your loved one may have retirement benefits, or personal savings set aside to offset their senior care needs. They may also be eligible for various types of financial support:
Community programs
- Many areas offer free or low-cost services that cover meals, transportation to appointments, and more
Insurance
- Disability
- Employee or retirement medical coverage
- Existing life and long-term care insurance
- Medicare
Government support
- Medicaid
- Social Security Disability Income (SSDI) for ages 65 and younger
- Supplemental Security Income (SSI)
- Tax credits and deductions
- Veterans’ benefits
Other Financial Responsibilities
In addition to the cost of care, your loved one’s personal finances require attention and protection from scams and fraud. This includes making sure bills get paid on time, submitting insurance claims, and keeping up with annual taxes and any investments they may have.
To help sort it out, the Consumer Financial Protection Bureau offers Managing Someone Else’s Money, a free guide for financial caregivers.
One-on-One Planning
Elder law attorneys know all the resources and programs that apply to your loved one and can put strategies in place for long-term financial planning. You can find an elder law attorney near you at the National Academy of Elder Law Attorneys (NAELA). Another option is to find a financial adviser who specializes in elder care through the Financial Planning Association.
Get Paperwork in Order
Whether you handle the financial work yourself or outsource it, documents are a big part of the process.
To prepare, gather as many of your loved one’s documents as you can, including:
- Bank account information
- Bills and debt
- Investment account information
- Mortgage or rental income paperwork
- Property deeds
- Pension and retirement benefit paperwork
- Social Security statements
- Stock and bond certificates
- Wills, plus medical and durable powers of attorney
