Adult Day Care for Alzheimer’s Disease and Dementia

Adult Day Care can be an invaluable part of a care plan for seniors with Alzheimer’s disease or other dementias, especially if their primary caregivers are family members who need to work during regular business hours. Adult Day Care centers operate during these hours, although not all of them are capable of caring for dementia patients. Medicaid covers Adult Day Care for qualified applicants, as do some long-term care insurance policies. For dementia patients who don’t live near an Adult Day Care center, there are other options that can support their caregivers.

What is Adult Day Care?

Adult Day Care centers provide daytime supervision and other benefits to seniors, and in some cases non-senior adults with disabilities. Not all Adult Day Care centers are alike, but the services and supports they offer can include:

• Supervision
• Social activities
• Meals/snacks
• Exercise programs
• Recreation opportunities
• Medication management
• Educational classes
• Transportation to and from the center
• Medication management
• Case management
• Counseling
• Medical oversight
• Skilled nursing
• Physical therapy
• Occupational therapy
• Regular visits from physicians, optometrists, audiologists, podiatrists, dentists

Which of these benefits are available, how often and at what price will depend on the individual center. To help distinguish between them, Adult Day Care centers are often divided into categories, which are detailed next.

Levels of Adult Day Care

There are three levels of Adult Day Care, although some centers may offer all three levels of care, often in different sections of the facility. Some Adult Day Care centers may not be labeled with these levels or even be aware of them, but they are used in many places across the country.

1. Social Adult Day Care (SADC) is for seniors who need supervision, means and activities, but not medical services. SADC would not be appropriate for anyone who has been diagnosed with Alzheimer’s disease or other dementias, or anyone with a chronic illness. SADC centers may also be referred to as Adult Day Services.
2. Adult Day Health Care (ADHC) centers provide supervision, activities and meals, and they are staffed with trained nursed and other healthcare professionals who can provide medical services and support. ADHC facilities have medical equipment, may offer physical and occupational therapy, and provide assistance with the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting). ADHC centers might be appropriate for someone who is showing potential signs of dementia or in the early stages, but that depends on their care needs and the facilities services. ADHC facilities may also be called Adult Day Medical Care.
3. Specialized Adult Day Care is usually the best option for seniors with Alzheimer’s disease or other dementias. These facilities are staffed with professionals who have been trained to work with dementia patients, and they often have features designed to help people with dementia, like bright lighting and colors, easy-to-read clocks and security systems that prevent wandering. Specialized Adult Day Care Centers also offer comprehensive medical care and assistance with the Activities of Daily Living.

PACE/LIFE Adult Day Centers

The Program of All-Inclusive Care of the Elderly (PACE) streamlines medical, social service and mental health services and coverage for people age 55 and up who need a Nursing Facility Level of Care (NFLOC) but live in the community. There are 185 PACE organizations in 33 states, according to the National Pace Association. There are more than 300 PACE Adult Day Care centers connected with those 185 organizations. Not all of the centers are identical, but the majority of them can care for people with Alzheimer’s disease and other dementias.

All PACE members have access to the PACE Adult Day Care centers. The services and supports at each center may vary, but in general they provide supervision, social activities, meals, transportation, medical oversight and some level of medical care. Regular visits from physicians, optometrists, audiologists, dentists and podiatrists may also be offered in some PACE centers. In some states, PACE is called LIFE (Living Independence for the Elderly).

Paying for Adult Day Care for Alzheimer's and Dementia Patients

Adult Day Care cost, on average, $71/day in the U.S. in 2024, according to the Cost of Care Survey conducted by Genworth and CareScout. So, if a senior if going to the center five days a week, it could cost around $1,500/month. Memory care, on the other hand, cost $7,139/month in 2024, on average, and a private room in a nursing home cost an average of $10,646/month.

The cost of many of the services and supports described above will be included in the Adult Day Care daily fee, but some locations may charge extra for certain services. Medicaid provides the most financial assistance and coverage when it comes to Adult Day Care, but there are also other assistance options.

Medicaid Options

Medicaid can cover all or some of the cost of Adult Day Care for qualified Alzheimer’s and dementia patients via one of its Home and Community Based Services (HCBS) Waiver or via Aged, Blind and Disabled (ABD) Medicaid, which is also known as regular or state Medicaid for seniors. The Adult Day Center will need to be fully licensed, approved by Medicaid and able to care for the senior’s needs in order for Medicaid to cover the costs. Not all HCBS Waivers or ABD Medicaid programs will cover Adult Day Care, but many do. To qualify for HCBS Waivers or ABD Medicaid, applicants need to meet functional and financial eligibility requirements.

Medicaid will also cover the full cost of PACE/LIFE for HCBS Waivers and ABD Medicaid beneficiaries who require a NFLOC. However, one must live relatively close to a PACE/LIFE day center to enroll in the program.

VA Benefits

Veterans Affairs (VA) in most states run their own Adult Day Care centers, and some of them will be able to care for veterans with Alzheimer’s disease and dementia. Some of these VA Adult Day Care centers do charge a fee, but there is usually a sliding scale, and some are free to any veteran. However, a veteran with dementia would need to live close enough to a center to make it a viable option.

Qualified veterans (or their surviving spouses) can also receive financial assistance through a VA Pension that they could use to pay for Adult Day 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 ($159,240, effective Dec. 2024 – Nov. 2025), which is calculated by adding the total of their assets to their annual income, and their income must be less than the VA Pension they are applying for. In 2025, VA Pensions range from $16,965/year to single veterans with no dependents who only qualify for Basic, to $44,886/year for two veterans married to each other who both qualify for A&A (and possibly more if those married veterans have dependent children).

To qualify for A&A or Housebound Pensions, veterans or their surviving spouses must also meet a medical requirement. And all veterans must also meet a military service requirement, which includes not having received a dishonorable discharge, to qualify for a VA Pension.

Long-Term Care Insurance

Some long-term care insurance policies cover at least a portion of Adult Day Care costs, although the Adult Day Care center will likely need to be approved by the insurer. Most long-term care policies have a maximum amount per day that they will cover for Adult Day Care, and that amount could include coverage for in-home health aides, so be sure to double check the policy for the details. Most consumers purchase long-term care insurance when they are in their late 50’s or early 60’s and still in good health. As people age and their health worsens, long-term care insurance policies become more expensive, and eventually people of a certain age and/or health condition will no longer be able to buy a long-term care policy.

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 Adult Day Care. As of 2025, the maximum SSI benefit for an individual is $967/month and for a married couple it’s $1,450/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 2025, individuals may meet the SSI income limit if they earn less than $2,020/month OR they get less than $988/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 $2,985/month in work income or $1,471/month in non-work income, and the asset limit is $3,000.

Other Options

• Seniors with Alzheimer’s disease or another dementia who need financial assistance should check with any Adult Day Care centers in their area to see if they can provide any help in that area. Some of them do receive public funds and private donations that can be used to help offset costs for those in need, and there may even be some earmarked specifically for seniors with dementia.
• Certain tax credits and deductions can provide financial relief for some Alzheimer’s and dementia patients and their families who are trying to fit Adult Day Care into their budget. 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.
• Anyone who care for a senior with dementia, including adult children, and works another job should check with their employer’s human resources department to see if they can provide any financial assistance for Adult Day Care. Some businesses may have a dependent care spending account that would allow employees to pay for Adult Day Care with pre-tax dollars.