Paying for Care
A number of financial resources may be available to help cover the costs of care for the person with Alzheimer's or other dementia. Some may apply now and others in the future.
Insurance
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However, private insurance, a group employee plan or retiree health coverage also may be in effect. If the person with dementia is younger than 65 years old (considered younger-onset Alzheimer's), he or she may have private insurance, a group employee health plan or perhaps retiree medical coverage. If he or she changes policies, check how soon Alzheimer's disease expenses will be covered under the new policy.
Learn more: Insurance, Medicare, COBRA
Employee benefits
Make sure to:
- Review the employer's benefits handbook.
- Ask the benefits specialist what benefits may be available, e.g., the employer may provide paid sick leave or other short-term disability benefits (usually for one year or less).
- Keep written confirmation of all benefits.
Retirement benefits
Retirement plans include:
- Individual retirement accounts (IRAs).
- Annuities.
Pension plans typically pay benefits before retirement age to a worker defined as disabled under the plan's guidelines.
The person living with dementia also may be able to withdraw money from his or her IRA or employee-funded retirement plan before age 59 1/2 without paying the typical 10 percent early withdrawal penalty. This money usually will be considered regular income, and taxes will have to be paid on the amount withdrawn.
In that case, if withdrawals can be delayed until after the person leaves work, income taxes due will likely be less because he or she will probably fall into a lower income tax bracket. Social Security benefits are also available before retirement age if Social Security disability requirements are met.
Personal savings, investments and property
- Investments, such as stocks, bonds, savings accounts and real estate.
- Personal property, such as jewelry or artwork.
Equity in a home may be converted into income through a process called a reverse mortgage. This loan allows an individual age 62 or older to convert some of the equity in his or her home into cash, while remaining the homeowner. The amount the person is eligible to borrow is generally based on the person's age, home's equity and lender's interest rate. Reverse mortgages do not have an impact on Social Security or Medicare benefits, but they may affect the person's ability to qualify for other government programs.
Government assistance
Learn about veteran benefits
Veterans Administration (VA) services for veterans living with Alzheimer's or dementia and their caregivers can include in-home care, long-term residential care, hospice and respite for caregivers.
Learn more: Government Programs, Medicaid,Tax Deductions and Credits
Community support services
Learn more: Find support services through your local Alzheimer's Association® chapter or the Community Resource Finder.
Help is available
The Alzheimer's Association® can connect you with low-cost or free community support services.
- Call our 24/7 Helpline at 800.272.3900. Dial 711 to connect with a TRS operator.
- Benefits Check-Up helps you find benefit programs that can help pay for medications, health care, food, utilities and more.
- Benefits.gov can help you find out which government benefits you may be eligible to receive.
- Department of Veterans Affairs has information on government benefits available to those who served in the military.
- National Clearinghouse for Long-Term Care Information is a government site that helps you plan for long-term care needs and find services.