Illinois Residential Alzheimer’s Memory Care: Rules, Costs & Financial Help

Legal Definition of Assisted Living / Memory Care in Illinois

In Illinois, assisted living and memory care residences for people with Alzheimer’s disease and other dementias are broken down into two main categories: Assisted Living Establishments and Shared Housing Establishments.

Assisted Living Establishments in Illinois provide residential care for at least three unrelated adults who need assistance with the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting) as well as 24-hour personal, supportive and intermittent health-related services, and at least 80% of these residents will be 55 or older. Assisted Living Establishments must have a full time manager, and enough trained staff to adequately care for the residents’ needs. There are no staffing ratios, but at least one staff member must be awake and on-site 24 hours per day. Assisted Living Establishments in Illinois must also offer single-occupancy private apartments.

Shared Housing Establishments in Illinois may also be called board and care homes, and they are not required to offer single-occupancy apartments. They do provide residential care for 16 or fewer unrelated adults who require assistance with the Activities of Daily Living (ADLs) and 24-hour personal, supportive and intermittent health-related services. They must have a manager who oversees no more than three establishments if they are located within 30 minutes driving distance (non-rush hour) and can be immediately contacted. They must have one staff member on site at all times, except for emergency situations or planned where arrangements are made for the residents well-being and safety.

Both types of residential facilities can house people with Alzheimer’s disease and other dementias, as long as they meet the following criteria:

• Complete an Alzheimer’s Special Care Disclosure Form
• Disclose its dementia care plan with the Department of Public Health
• Assign a representative to each resident
• Ensure safety of all dementia residents, including those who wander and/or need supervision during emergency evacuations
• Coordinate communication between dementia residents, their representatives, relatives and anyone else identified in the their service plan
• Provide activities that stimulate and encourage maximum cognitive stimulation
• Provide at least 1.4 hours of services per resident per day
• Train staff on how to care for residents with dementia (details below)
• Have a manager that is at least 21, has experience with persons with dementia and completes at least 6 hours of continuing education on an annual basis

Illinois Assisted Living Laws & Regulations

Admissions Requirements & Process

To move into an Assisted Living Establishment or Shared Living Establishment in Illinois, a resident must undergo a doctor’s assessment no more than 120 days prior to moving into the establishment. The assessment will evaluate the individual’s physical, cognitive and behavioral condition, and reevaluations must be completed annually. These assessments will help determine if the individual will be accepted for residency at the establishment. No individual will be accepted for residency or allowed to remain in the establishment if:

• The individual requires total assistance with two or more of the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting)
• The individual requires the assistance of more than one paid caregiver at any given time
• The individual requires more than minimal assistance in moving to a safe area in an emergency
• The individual has a major mental disorder as classified by the Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition
• The establishment can not provide or secure appropriate services
• The establishment is not licensed to provide services required by the individual
• The establishment does not have the appropriate staff numbers to provide services required by the individual

Staff and Training

To receive a license to house residents with Alzheimer’s disease and other dementias, Assisted Living and Shared Living Establishments in Illinois must provide at least four hours of specialized training to all staff members before they can assume their job responsibilities. This training must include:

• Information regarding the causes, progression and management of Alzheimer’s disease and other dementias
• Techniques for successful communication with dementia residents
• Recognizing and rectifying safety risks for dementia residents
• How to create an environment that minimizes challenging behavior
• Resident rights

In addition, direct care staff are required to receive 16 hours of on-the-job training and supervision after their orientation. The training covers communication techniques, creating an environment that minimizes challenging behavior and residents rights, as well as providing assistance with the Activities of Daily Living, encouraging independence, and emergency and evacuation procedures. Direct care stuff are also required to complete 12 hours of in-service education on Alzheimer’s disease and other dementias.

Evictions

There are no state regulations that mandate a patient must be given advance notice before being evicted for non-payment, inappropriate behavior, or another reason. Each Assisted Living and Shared Housing Establishment is allowed to make its own rules regarding evictions, so it’s important for all residents to understand the rules of the establishment. State law does require that, at the time a new resident is accepted into an establishment, it must provide the resident or their resident with a copy of the current resident policies.

Knowing exactly why a person can be evicted, and how that process works is vital before moving into an assisted living home. By knowing these answers ahead of time, you can prevent an unfair eviction of your loved one. For more on memory care evictions, click here.

How Much Does Memory Care Cost in Illinois?

There can be significant differences in the cost of assisted living and memory care depending on what part of Illinois you are in. The table below lists the median monthly cost of both assisted living and memory care facilities in different regions of the state as of 2025, and it includes the statewide median cost, as well as the median cost for non-metropolitan areas. Individuals who are in the early to mid stages of dementia may be best suited for assisted living facilities, which are less expensive than memory care, while those with more severe symptoms or who are in the late stages of dementia will likely need memory care.

The cost for assisted living and memory care can also vary depending on the state. Illinois residents might consider moving to Iowa, where the median 2025 costs were considerably lower.

Financial Assistance For Alzheimer's and Dementia Patients in Illinois

There are several sources of financial assistance and care support for qualified Illinois seniors with Alzheimer’s disease and other dementias who reside in an Assisted Living or Shared Housing Establishment. These include Medicaid’s Supportive Living Program, Aide to Aged, Blind and Disabled (AABD) Medicaid, Veterans Affairs (VA) Pensions and Supplemental Security Income (SSI), as well as elder loans, tax credits and reverse mortgages.

Medicaid Long-Term Care

Illinois Medicaid will not pay room and board costs in Assisted Living or Shared Housing Establishments. However, it can cover certain long-term care services and supports for qualified residents of these establishments, including residents with Alzheimer’s disease and other dementias. It can do this through the following programs:

Supporting Living Program
This Medicaid program covers some long-term care services and supports for qualified applicants who live in Assisted Living or Shared Housing Establishments, including establishments licensed to care for people with Alzheimer’s disease and other dementia. To qualify for Illinois’ Supportive Living Program (SLP), applicants must meet the medical requirement of needing a Nursing Facility Level of Care (NFLOC). Having Alzheimer’s or other dementias does not guarantee a NFLOC, although many people with dementia will meet the requirement.

SLP applicants must also meet the financial requirements – an asset limit and an income limit. As of 2026, the SLP asset limit is $17,5000 for an individual and a married coupled with both spouses applying. The income limit has both a minimum and a maximum. For an individual applicant, the minimum is $994/month, and for a married couple with both spouses applying its $1,491/month. The maximum is no greater than the amount a sportive living provider would receive for housing a Medicaid resident or couple, including daily services and room and board.

SLP benefits include in-home nursing care, housekeeping assistance, medication management, Personal Emergency Response Systems and personal care assistance with the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting). These services will be made available depending on the individual needs of the beneficiary as determined by a state evaluation, which includes a Mini-Mental Status Examination to assess cognitive functioning and the severity of dementia.

SLP is also known as the Waiver for Supportive Living Facilities and is one of Medicaid’s Home and Community Based Services (HCBS) Waivers. It has a limited number of enrollment spots, about 15,000 as of 2025, and once those spots are full additional applicants will be placed on a waitlist.

Aid to Aged, Blind, and Disabled (AABD) Medicaid
Illinois Aid to Aged, Blind and Disabled (AABD) Medicaid may also be called regular or state Medicaid for seniors. AABD can serve as basic healthcare coverage for financially limited Illinois seniors who have no medical needs, but for those who do need long-term care, AABD will cover some benefits, including for beneficiaries who have dementia and live in Assisted Living or Shared Housing Establishments.

To qualify for AABD Medicaid, applicants have to meet an asset limit ($17,500 for an individual as of 2026) and an income limit ($1,330/month for an individual as of 2026). To qualify for long-term care benefits through AABD Medicaid, applicants must show a need for that benefit, which can include adult day care, meal delivery, Personal Emergency Response Systems and personal care assistance with the Activities of Daily Living (mobility, bathing, dressing, eating, toileting).

AABD Medicaid beneficiaries who are also enrolled in Medicare, known as being “dual eligible,” are required to enroll in one of these two programs – Medicaid Managed Long Term Services and Supports or Medicaid-Medicare Alignment Initiative. Both of them will cover both Medicaid and Medicare services and supports under one streamlined plan. Having their care organized in this way can be extremely helpful for dementia patients

Nursing Home Medicaid
Illinois’ Nursing Home Medicaid will cover all nursing home expenses, including room and board, for all eligible applicants. To qualify, applicants must meet an asset limit ($17,500 for an individual in 2026) and an income limit ($1,330/month for an individual in 2026). They also have to meet the medical requirement of needing a Nursing Facility Level of Care (NFLOC), which means they need the type of full-time supervision and care associated with nursing homes. It’s important to note that a diagnosis of Alzheimer’s disease or another dementia does not guarantee a NFLOC designation. However, many people with dementia will meet the requirements.

Veterans Affairs

Qualified Illinois veterans (or their surviving spouses) can also receive financial assistance through a Veterans Affairs (VA) Pension that they could use to pay for assisted living or memory care. There are three levels of VA Pensions – Basic, Aid & Attendance (A&A) and Housebound. To qualify for any of them, veterans or their surviving spouses need to meet a net worth limit of $163,699 (effective Dec. 2025 – Nov. 2026), which is calculated by adding the total of their assets to their annual income. Some assets are exempt, like a primary home, primary vehicle and household furniture and appliances. VA Pension applicants also have to meet an income limit to be eligible – their income must be less than the VA Pension they are applying for in order for them to qualify. And veterans must meet a military service requirement, which includes not having received a dishonorable discharge.

To qualify for A&A, veterans or their surviving spouses must also meet a medical requirement, which is one of the following must be true:

• They need help to perform the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting) OR
• They have to stay in bed for at least a large portion of the day due to illness OR
• They are in a nursing home due to loss of mental or physical abilities OR
• Their eyesight is extremely limited (5/200 or less in both eyes even with glasses or contacts; or concentric contraction of the visual field to 5 degrees or fewer)

To qualify for Housebound, veterans must spend most of their time in their home due to a permanent disability.

There is no medical requirement for VA Basic Pensions.

Qualified veterans or their surviving spouses are entitled to their Maximum Annual Pension Rate (MAPR) minus their annual income. The following MAPRs are effective from Dec. 1, 2025, to Nov. 30, 2026.

VA Basic Pension MAPRs

• Veterans without spouses or children: $17,441
• Veterans with dependent spouses or children: $22,839
• Surviving spouses without dependent children: $11,699
• Surviving spouses with dependent children: $15,311
• Two veterans married to each other: $22,839

VA Aid & Attendance MAPRs

• Veterans without spouses or children: $29,093
• Veterans with dependent spouses or children: $34,488
• Surviving spouses without dependent children a maximum of $18,697
• Surviving spouses with dependent children: $22,304
• Two veterans married to each other and one qualifies for A&A: $34,488
• Two veterans married to each other and one qualifies for A&A and one for Housebound: $38,350
• Two veterans married to each other and both qualify for A&A: $46,143

VA Housebound MAPRs

• Veterans without spouses or children: $21,313
• Veterans with dependent spouses or children: $26,710
• Surviving spouses without dependent children: $14,298
• Surviving spouses with dependent children: $17,902
• Two veterans married to each other and one qualifies for Housebound: $26,710
• Two veterans married to each other and both qualify for Housebound: $30,580
• Two veterans married to each other and one qualifies for Housebound and the other for A&A: $38,350

Veterans’ Homes
There are five State Veterans Homes in Illinois and all of them offer 24/7 skilled nursing care for qualified veterans. The homes are located in Anna, Chicago, LaSalle, Manteno and Quincy. They provide comprehensive care that includes professional medical care, social activities and nutritious meals.

Click here to learn more about Stave Veterans Homes in Illinois.

Supplemental Security Income

Dementia patients age 65 and over with limited income and assets may qualify for Supplemental Security Income (SSI). These funds can be used to pay for the cost of assisted living or memory care. As of 2026, the maximum SSI benefit for an individual is $994/month and for a married couple it’s $1,491/month.

To qualify for SSI, applicants must be age 65 and over or have a significant disability, and they must meet an income limit and an asset limit. As of 2026, individuals may meet the SSI income limit if they earn less than $2,073/month OR they get less than $1,014/month from non-work sources, like Social Security benefits or pension payments. They may meet the SSI asset limit if they have $2,000 or less in countable assets. For couples, the income limit is $3,067/month in work income or $1,511/month in non-work income, and the asset limit is $3,000.

Other Options

1) Elder care loans exist for families to cover the costs of moving into memory care while waiting for other financial resources to become available. For example, if one is waiting for Medicaid approval or waiting to sell a home. More on bridge loans for memory care.

2) Some tax credits and deductions can provide financial relief for seniors with dementia and their families. Seniors with limited financial resources can claim the Credit for the Elderly and/or the Disabled, as long as no one can claim them as a dependent. If someone (like an adult child) can claim the senior as a dependent, they can utilize the Child and Dependent Care Credit, and they can deduct any medical or dental expenses they paid for the senior.

3) A reverse mortgage loan can be a viable option for some senior homeowners who are in need of extra income to help pay dementia care. However, reverse mortgages are not recommended for every senior homeowner who needs extra income, so it’s important to consult with a professional before taking out one of these loans.