A Comprehensive Guide to: The Cost of Dementia Care at Home
At Choice Dementia Services, we know that your loved one’s safety, happiness, and health are your primary concern. There is no question that most seniors are happier at home than in a long-term care facility. There is also mounting evidence that having home support has positive health impacts for family members with Alzheimer’s or another related dementia.
This comprehensive guide will break down the various costs associated with providing care for someone with dementia, from at-home dementia care to assisted living residences. We will also point you towards some of the many resources for financial assistance that may be available to you from tax relief to insurance programs. We hope that this information will help you and your family members plan for the future and make the best decisions for your loved ones.
How much does in home dementia care cost?
The fees for in home dementia care can vary depending on the type of care needed, where you live, and the specific services provided. Generally, care providers will charge daily, weekly or monthly fees which cover the agreed-upon services. Depending on your financial situation, there may be government programs that you can access to contribute towards some of these costs.
What is In Home Dementia Care?
There are many types of care and services that fall under the umbrella term of “in home care,” and the cost of each service can vary widely. When you consider the additional needs of an individual with dementia, it becomes more difficult to compare the alternatives.
Here are some things you should know about dementia costs.
Care can take many forms, from homemaker assistance to companionship services to full-time nursing home care: be sure you are comparing apples to apples when you consider different options.
The cost of care will depend on the type of service you choose, as well as your location.
You may be able to get financial assistance to help pay for in-home dementia care costs through health insurance or other life insurance policies.
The number of seniors is growing rapidly in Canada from 6.2 million in 2022 to 13 million by 2040. Currently, there are over half a million people with dementia in Canada who require medical care, and that number is expected to rise to close to 912,000 by 2030. Access to medical care, residential care, and the cost of dementia care is an issue we all need to be concerned about.
The annual cost of dementia to the Canadian economy and healthcare system is over $10.4 billion
Is Dementia Care At Home Free?
It's a common misconception that providing care to an elderly family member or loved one is free. In reality, there are hidden out-of-pocket costs you need to consider before deciding to provide care yourself.
A recent study from the AARP showed that family caregivers spent, on average, close to $9,500 annually ($7,242USD) caring for their loved ones. Some of the costs that are often forgotten include:
Transportation
If you are providing dementia care to a family member, they will likely need your assistance through their day. This might include driving them to appointments, shopping for groceries, or going to the bank. This results in real costs such as fuel and vehicle maintenance.
Time
There are also potential time costs that need to be considered such as taking time off work or taking a leave of absence from your job if that is what is needed for you to provide care. If you are unable to work outside of your home for any length of time or are providing care on a full-time basis, this will likely have an impact on your earnings.
Physical Costs
Providing dementia care to a loved one can also be a highly physical job. Tasks such as bathing your loved one or helping with the toilet may cause strain on your physical health, making you more likely to need medical attention in the future. One of the most common concerns we hear from family caregivers is the impact of lack of sleep on their mood and ability to cope with challenges.
Emotional Costs
Finally, there is the emotional toll of providing ongoing care to your loved one. Providing care can lead to mental health problems such as anxiety and depression. These mental health problems can put a strain on your physical and emotional well-being, which in turn may require medical interventions such as counseling.
You need to consider the emotional toll that these personal assistance responsibilities will have on you and your family. Most families find the transition from being the child of a healthy, vibrant adult to being their caregiver difficult. It can be even more challenging when to switch from the role of spouse and partner to nursemaid or primary caregiver. The emotional toll can be significant.
If you're looking for some relief from the physical and emotional toll of providing personal care to a loved one, consider hiring outside support. Dementia care services between you and an agency can go a long way to supporting your mental health and ensuring your loved one is being cared for.
The Cost of In Home Care for People with Alzheimer’s Disease and Dementia
Not every person with dementia requires round-the-clock, full-time home care services, and the fees of in-home health care services vary based on your loved one's demands. Hiring a home health aide to come to your loved one's house a few times a week will be less expensive than live-in care, but it will certainly contribute positively to your own mental health and to the quality of life your loved one is experiencing when compared to providing care yourself without support. The importance of caregiver support cannot be understated.
Professional caregivers are vetted and have training or certification to provide supportive in-home care service for Alzheimer's and dementia care. When families choose the right caregiver, your aging loved one will not only live more comfortably as they age, they will be healthier and happier! When you consider the benefits, the average costs are quite reasonable.
In home care can include providing your loved one with assistance with activities of daily living including personal hygiene, medication management, social and recreational activities, and providing companionship. At home care is much more than custodial or personal care.
65% of those diagnosed with dementia over the age of 65 are women.
Basic At Home Care Services: $200 to $1000 weekly
You may hire care services such as meal preparation or homemakers. Housekeeping services might include laundry, sweeping and cleaning floors, doing dishes, or dusting. These types of general housekeeping services can be very helpful when your loved one does not require much medical intervention or other health services.
These options can be a great support to the family caregiver but it is important to recognize that these individuals are not trained to recognize the special needs of individuals with dementia or other more complicated health care needs.
Trained Dementia Care Services: $600 to $1600 weekly
A trained dementia care aide will typically provide a high level of care such as personal care, medication management, and other memory care support. A trained caregiver can recognize when your loved one needs to see a physician, take prescription drugs, or go to the hospital. This can greatly increase the safety of your loved ones as they can spot the early warning signs of common medical issues such as urinary tract infections. In home residential care such as this can be great assistance to you and your family.
Dementia care services may also include companionship for seniors who do not have a spouse or partner. Companionship is an important service as it can help your loved one remain social and active in their community. This type of care can significantly improve the quality of life your loved one is experiencing.
When your loved one needs Alzheimer's care or dementia care, it is strongly recommended that health care aides with specific training in this area be considered. They can prevent wandering and offer assistance for more aggressive forms of dementia that may inhibit basic activities. A skilled professional can help your loved one continue their usual routine even as their mind deteriorates.
The range of care time needed may be anywhere from once a week for half a day of support all the way through to full time live-in care. Obviously, the costs can vary significantly. For most families, trained dementia care costs range from $600 to $1600 weekly and includes professional support several times per week.
There may be times when your loved one requires medical dementia care and professional nursing home care can be used to supplement the support of an aide or your family's care.
56% of Canadians are concerned about being affected by Alzheimer’s disease.
4 Tips to Manage the Cost of In Home Dementia Care
Get quotes on dementia care costs from multiple providers to find the best price and the right level of care for your loved one. You should be offered a free initial assessment. During this time, your loved one's care needs will be assessed by a professional to determine the level of support needed and the best options for success.
Most health insurance policies have some coverage for critical care. Look at what dementia care costs are covered under your insurance company before you sign any contracts or pay deposits. It is important to understand the exact details of what your policy covers.
Ask the caregiver about how you might be able to manage the costs if your insurance does not cover all care needs? Do they offer payment plans? You may be able to negotiate rates with the in-home care provider you choose, especially if you need a higher level of intervention or 24-hour care.
Ask family and friends for help with providing support to your parent or loved one in terms of household chores, maintenance, and other items that may not need the attention of a professional.
Though those with Alzheimer's might forget us, we as a society must remember them.
The Cost of Out of Home Care: Nursing Homes and Assisted Living Communities
Someone who requires a greater level of medical intervention may need an assisted living facility or nursing home care where they can receive 24-hour medical and monitored care. In most circumstances, the most expensive option is to go into a nursing home.
The next step down from a nursing home is to reside in an assisted living facility where you receive higher medical attention but not around-the-clock care. In some cases, even residing in an assisted facility isn't enough and a patient still needs someone to come into the residence frequently to provide them with services such as companionship, advocacy, or other care that simply isn't available.
It is important to consider the additional costs such as a private room and transportation. These can all add up quickly.
A recent study showed that nursing facilities may cost from about $200-$250 each day for a basic room and care, adding up to about $5,600 to $7,000 a month. The same report showed the average non-subsidized, private, for-profit memory-care home costs of $4,388 per month in Vancouver ($52,656 per year) and $5,400 per month in Toronto ($64,800 per year).
Insurance, Taxes and Credits for Canadians with Dementia
Critical Care Insurance
When considering how to pay for care for your loved one with dementia, you may want to look at whether or not they have a Critical Care Insurance Policy. Critical care insurance pays for the cost of care in certain circumstances, such as being medically necessary to prevent death or health-threatening injury. The fact that coverage is limited to "medically necessary" care may make it sound like it's only good for serious head injuries and airplane crashes but it can often be accessed for long-term medical issues like dementia.
Disability Tax Credit
Another option in Canada is the Disability Tax Credit. If your loved one does not already have this credit, you can apply for it and once they receive a notification of approval, you'll be about to take the credit in part or full on their behalf.
If you or a loved one have received a diagnosis of Dementia or Alzheimer’s Disease, ask your family physician to complete a T2201 form and then talk to your accountant or another financial planner. You may be able to apply this to previous tax years (up to 10 years).
Respite Care Program
An additional program for tax relief from the federal government is the Respite Care Program which helps to offset the cost of caregiving for a dependent adult with a disability, chronic or episodic condition. To qualify, the caregiver must be a relative of a disabled person and meet specific conditions. There is also an eligibility limit on income to take this credit which can help defray the cost of care greatly.
For more information on all of these programs, this guide from the Alzheimer’s Society may be useful.
A Note on Critical Care Insurance
Glory Gray is a Financial Advisor located on Vancouver Island. We asked her thoughts on Critical Care Insurance.
Protect Your Retirement Nest Egg With Critical Illness Insurance
Critical illness insurance coverage could help you keep your retirement savings plans intact and maintain your financial independence should a serious illness like dementia strike.
Can you afford to lose half your nest egg if you become seriously ill?
We wisely consider life insurance to protect those we love should we meet an untimely death.
But medical science has made great strides, and our chances of surviving an illness such as a heart attack or cancer has increased. Unfortunately, so have the medical costs of care for our treatment, not to mention the cost of time away from our jobs and caring for loved ones while we take time to heal.
Critical Illness Insurance helps alleviate that burden. Should you become ill with any one of the covered illnesses, such as stroke, cancer and even dementia, you can receive a lump sum payment to do with as you wish. You can use it to pay household expenses while you’re out of work, hire nursing care, or take a trip to a warm, tropical place that heals your soul. The choice is yours.
That way, you don’t have to dip into your TFSA or RRSP nest egg. It can continue to grow and supply you with the income you’ll need in retirement. This is especially important if your illness will require long term care.
When should you purchase this insurance? Like most insurance, premiums become more expensive as we get older, so the younger you are when you purchase the insurance, the better. Younger than age 55 is ideal.
How long does the insurance last? This varies by insurance carrier, but most will provide coverage through age 75 and some will protect you to age 100.
Financial Concerns for People Living with Dementia
In addition to the cost of care, there are several other financial considerations in dealing with dementia.
Managing Finances
Managing money and bill paying becomes more complicated in the early stages of dementia. One way to make it easier is to set up automatic payments for bills and other recurring charges such as insurance premiums, memberships, or subscriptions. As the disease progresses into later stages of dementia, you may need help managing your finances and paying bills. Setting up the proper authorities or power of attorney early is important.
Protecting Your Loved Ones from Fraud
As a person with dementia gets sicker, they may find it difficult to tell the difference between family and strangers. In some cases, unscrupulous caregivers have tricked dementia patients into giving them their money or power of attorney. Other scams try to convince people that their loved ones are in legal trouble or have been arrested, so they send money for bail or lawyers' fees.
Establishing Consent for Financial Matters
Establishing a plan for how you want your money handled is important. It's not always clear who makes decisions for someone with Alzheimer's disease. The person may be incompetent to take care of personal or financial matters, but still able to understand what you're doing. In this case, someone else needs to become the decision-maker, called the "substitute decision-maker." It could be a family member, friend, or court.
Planning for Future Financial Care and Decisions
As dementia progresses into later stages of confusion, agitation, and memory loss, it's important to plan for future financial care. This may include setting up an estate that meets legal requirements; putting together powers of attorney for family members, dealing with wills including living wills, health care directives, and end of life health care
Putting Together your Resources
It is said that a village is needed to raise a child. At this stage in life, we believe we still need that village; a village of professionals to ensure all of our current needs are being met. We have a trusted referral for each professional listed please contact us for their contact information. Listed are some you may wish to consider:
Lawyer - can educate you in the new Health and Financial Directives
Accountant - makes sure that you do not miss valuable deductions that happen only in later life
Nutritionist - ensures your brain gets the calories needed every day
Gerontologist - specialize in the health changes and needs of 60+ peoples
Spiritual Advisor - they come in a couple of different packages; the soul receives nourishment both spiritually and religiously
Financial Advisor - speaks about the importance of taking advantage of what is available to you now; that before may not have been applicable
Universal Designer - adapts our homes to make them compatible with our needs.
Alzheimer's Association & Health Canada - we will help you access the many resources available through these programs.
The team at Choice Dementia Services is here to support you.
DISCLAIMER STATEMENT
It is strongly recommended that a person diagnosed with Alzheimer’s disease or another dementia, their family, their health care proxy, and their power of attorney discuss legal, financial, and health matters as early as possible after a person has been diagnosed. Involving the person with dementia as much as possible in their ongoing decision-making helps the substitute decision-makers reflect the values and preferences of the person in the decisions that will be made. Requesting advice from accounting, financial and legal professionals will help the person with Alzheimer’s disease or another dementia and the power of attorney make decisions that are in the best interest of the person.
Do You Need Help at Home for Your Loved One with Dementia?
Choice Dementia Services has been providing high-quality, compassionate in-home care to seniors diagnosed with dementia and their families since 2016. Our team of caregivers is dedicated to helping you live happier, healthier lives at home. We are trained professionals who are ready to help with any task from housekeeping and meal prep to personal hygiene and transportation. And we offer 24/7 emergency support and respite care and always put your loved ones first.
You can trust us with your loved ones because we understand the importance of creating a safe environment where they feel comfortable living. We know that every person has unique needs – which is why we customize each care plan based on what matters most to them and you so they can stay true to themselves as long as possible without sacrificing quality of life along the way. Whether it’s getting groceries delivered right outside their door or having someone come by twice a week for an afternoon chat, Choice Dementia Services will make sure your loved one feels happy and cared for at all times during their time with us.