How to Pay for Long-Term Care After a Dementia Diagnosis in Georgia

One of the biggest concerns families face after a dementia diagnosis is simple and overwhelming:

“How are we going to pay for care?”

Dementia is not a short-term condition. It often requires years of increasing care, and those costs can add up quickly.

Without a plan, families often spend down savings faster than expected, make rushed decisions in crisis, and miss opportunities to protect assets.

The good news is that there are options, but timing and strategy matter.

This guide will walk you through how families in Georgia typically pay for long-term care and what you need to know to plan ahead.

👉 If you’re just starting this process, read our full guide on Kimbrough Law’s step-by-step approach to legal planning after a dementia diagnosis in Georgia.

Understanding the Cost of Dementia Care

The cost of care depends on the level of support needed.

Common care options include:

• In-home care → Help with daily activities at home

• Assisted living → Supportive housing with some care

• Memory care → Specialized dementia care

• Nursing home care → 24/7 medical support

Typical monthly costs (approximate ranges):

• In-home care: $4,000–$8,000+

• Assisted living: $4,000–$7,000+

• Memory care: $5,000–$10,000+

• Nursing home: $7,000–$12,000+

Costs vary based on location and level of care, but the reality is, most families are not prepared for how quickly these expenses add up.

Does Medicare Cover Dementia or Long-Term Care?

This is one of the most common misconceptions.

Medicare DOES cover:

• Doctor visits

• Hospital stays

• Short-term rehabilitation

• Limited home health services

• Hospice care (for those with a life expectancy of 6 months or less)

Medicare does NOT cover:

• Long-term custodial care

• Assisted living

• Memory care

• Ongoing in-home care

• Ongoing nursing home care

Medicare is designed for medical treatment, not long-term support.

How Families Typically Pay for Dementia Care

1. Private Pay (Out of Pocket)

Many families initially pay using savings, retirement accounts, and home equity. Without planning, assets can be depleted quickly.

2. Long-Term Care Insurance (If Available)

If your loved one has a long-term care policy, it may help cover in-home care, assisted living, and memory care. However, not everyone has coverage, policies vary widely, and benefits may have limits.

3. Medicaid (The Most Important Long-Term Option)

For many families, Medicaid becomes the primary way to pay for long-term care. Medicaid can cover nursing home care, some in-home care services, and certain community-based programs. But there’s a catch. Medicaid has strict income limits, asset limits, and look-back rules that penalize gifting. Without proper planning, families may spend down assets unnecessarily, make costly mistakes, and delay eligibility.

Why Medicaid Planning Matters

Medicaid planning is not about “giving everything away.” It’s about:

• Structuring assets properly

• Protecting what can be protected

• Qualifying at the right time

With proper planning, families may be able to preserve some savings, protect a home in certain situations, avoid unnecessary financial loss, and protect the financial well-being of the spouse. Without planning, families often spend down everything, run out of options, and face financial stress on top of caregiving.

👉 Managing finances also requires legal authority. Here’s what happens if there is no power of attorney for someone with dementia.

When Should You Start Planning for Long-Term Care?

The best time to plan is as early as possible after a dementia diagnosis.

Why?

Because planning early allows you to explore more options, avoid rushed decisions, protect more assets, and create a coordinated strategy. Waiting until care is urgently needed limits your choices.

👉 A strong financial plan starts with the right legal foundation. Learn which legal documents are needed after a dementia diagnosis.

How Life Care Planning Helps With Cost and Care Decisions

Paying for care is not just a financial issue, it’s a coordination issue.

Life Care Planning helps families:

• Understand care needs and progression

• Identify appropriate care options

• Coordinate legal and financial strategies

• Navigate Medicaid and other benefits

• Adjust plans as needs change

Instead of reacting to rising costs, families have a clear, proactive plan.

What Should You Do Next?

If your loved one has been diagnosed with dementia, start planning for long-term care now, not later. Even if care isn’t needed yet, early planning gives you more options, more control, and better financial outcomes.

Frequently Asked Questions

How do you pay for long-term care after a dementia diagnosis in Georgia?

Families in Georgia typically pay for long-term care after a dementia diagnosis using a combination of private savings, long-term care insurance (if available), and Medicaid. Many families start by paying out of pocket, but as care needs increase, Medicaid often becomes the primary long-term solution for covering nursing home care and some in-home or community-based services. Early planning is critical to protect assets and qualify for benefits.

Does Medicare cover assisted living or memory care in Georgia?

No, Medicare does not cover the cost of care in an assisted living or memory care community in Georgia. Medicare is designed to cover medical treatment, such as doctor visits, hospital stays, short-term rehabilitation, and limited home health services. It does not pay for ongoing custodial care, which is the type of care most people with dementia need over time.

What is the average cost of dementia care in Georgia?

The average cost of dementia care in Georgia can range from approximately $4,000 to over $10,000 per month, depending on the level of care required. In-home care, assisted living, memory care, and nursing home care all have different cost structures, with memory care and nursing homes typically being the most expensive due to the higher level of supervision and support.

Can Medicaid pay for dementia care in Georgia?

Yes, Medicaid can pay for dementia care in Georgia, including nursing home care and certain in-home or community-based services for individuals who meet strict income and asset eligibility requirements. Because Medicaid rules are complex and include look-back periods, many families benefit from working with an elder law attorney to develop a plan that allows them to qualify while protecting some assets.

When should you start Medicaid planning for dementia?

You should start Medicaid planning as early as possible after a dementia diagnosis, ideally before long-term care is urgently needed. Early planning gives families more options to protect assets, structure finances properly, and avoid costly mistakes. Waiting too long can limit eligibility strategies and lead to unnecessary financial loss.

Protect Your Assets and Plan for Care

The cost of dementia care can be overwhelming, but with the right plan, you don’t have to navigate it alone.

At Kimbrough Law, we help families across Georgia create strategies to pay for care, protect assets, and plan for what comes next.

Book a consultation to build a plan that works for your family.

Call 706.850.6910 to get on the schedule.