Family navigating a financial maze of healthcare bills

Navigating the Financial Maze: A Guide to Managing Care Costs for Neurological Conditions

Nico Varela in Health & Wellness December 2025 • 4 min read.

"Expert advice on planning, insurance, and support to safeguard your loved one's financial future while ensuring quality care."

Receiving a diagnosis of Alzheimer's disease or another progressive neurological disorder can be emotionally overwhelming. However, the financial strain can be equally, if not more, devastating. Many individuals express a desire for financial guidance to accompany the medical diagnosis, wishing they had understood the long-term costs associated with care.

This guide aims to provide actionable insights and expert advice to help families navigate the financial complexities of caring for a loved one with a progressive neurological condition, ensuring they can access the necessary care while preserving financial stability.

Understanding the Financial Shock: The Real Costs of Neurological Care

Family navigating a financial maze of healthcare bills

The financial implications of caring for someone with advanced Parkinson's disease, multiple sclerosis, or Alzheimer's disease can be staggering. Costs can range from $6,000 a month for residential care in some regions to over $20,000 in urban areas. Many families are unprepared for these expenses, often because they either underestimate the likelihood of needing such care or overestimate the coverage provided by Medicare.

Bernie A. Krooks, an attorney specializing in elder law and special needs, notes that this lack of preparation leads to significant financial shock when families are confronted with the reality of long-term care costs. For those with Alzheimer's disease, the financial burden can be particularly acute. Healthcare costs for individuals aged 65 and older with Alzheimer's or other dementias are, on average, three times greater ($49,126) than those without dementia ($15,550).

Limited Insurance Coverage: Many costs associated with dementia care are not covered by standard insurance. This includes assistance with daily activities such as feeding and dressing, which are often essential for individuals with dementia.
Increased Lifespan: People are living longer, which means they require care for extended periods, further increasing the overall financial burden.
High Out-of-Pocket Costs: Out-of-pocket expenses remain high regardless of whether individuals have private or government health insurance. These costs include insurance premiums, copays, deductibles, and services not covered by insurance programs.

Data from the Alzheimer's Association reveals that the average annual out-of-pocket cost for a person with dementia is $10,495. These costs can soar to $20,207 per year for those in assisted living or other residential care settings—approximately six times greater than for individuals living at home.

Seeking Support and Information

Navigating the financial aspects of neurological care can be overwhelming, but numerous resources are available to help. By planning ahead, understanding available insurance options, and seeking expert advice, families can ensure their loved ones receive the care they need while safeguarding their financial future. Remember, you're not alone, and with the right strategies, you can navigate this challenging journey with confidence and peace of mind.

About this Article -

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Everything You Need To Know

What are the primary financial challenges associated with caring for someone with Alzheimer's or other neurological conditions?

The primary financial challenges include the high costs of care, which can range from $6,000 to over $20,000 a month depending on the type of care and location. Many families are unprepared for these expenses because they underestimate the likelihood of needing care or overestimate Medicare coverage. Out-of-pocket expenses are also significant, including insurance premiums, copays, deductibles, and services not covered by insurance programs. Costs for individuals with Alzheimer's or other dementias are, on average, three times greater ($49,126) than those without dementia ($15,550). Additionally, limited insurance coverage for essential services like assistance with daily activities, and the increased lifespan of individuals requiring care further compound these challenges.

Why is early planning so important when dealing with the financial aspects of neurological care, according to Fiona Van Dyck?

Fiona Van Dyck, an estate planner, emphasizes the importance of early planning to protect assets and explore available strategies. Delaying or avoiding these discussions can limit options for safeguarding your loved one's financial well-being. The earlier families start planning, the more avenues they have to protect assets and ensure they can afford quality care for their loved ones with conditions like Alzheimer's or advanced Parkinson's disease.

What specific healthcare costs are significantly higher for individuals with Alzheimer's compared to those without dementia?

Healthcare costs for individuals aged 65 and older with Alzheimer's or other dementias are, on average, three times greater than those without dementia. The average annual healthcare cost is $49,126 for those with dementia, compared to $15,550 for those without. This difference highlights the substantial financial burden that Alzheimer's and similar conditions place on individuals and their families.

Can you provide examples of out-of-pocket expenses that families face when caring for someone with a neurological condition, and what is the average annual cost?

Out-of-pocket expenses include insurance premiums, copays, deductibles, and services not covered by insurance programs. According to data from the Alzheimer's Association, the average annual out-of-pocket cost for a person with dementia is $10,495. This figure can increase to $20,207 per year for those in assisted living or other residential care settings, which is approximately six times greater than for individuals living at home. These costs often cover essential needs like assistance with daily activities, which are typically not covered by standard insurance.

What role does Bernie A. Krooks play in addressing the financial challenges of neurological care, and what key points does he emphasize?

Bernie A. Krooks, an attorney specializing in elder law and special needs, emphasizes the importance of preparation and planning for the financial complexities of neurological care. He notes that the lack of preparation leads to significant financial shock when families are confronted with the reality of long-term care costs. His expertise helps families understand the legal and financial aspects of care, including navigating insurance options and protecting assets. This underscores the need for early engagement with legal and financial professionals to ensure families are well-prepared for the financial implications of caring for loved ones with conditions like advanced Parkinson's disease or Alzheimer's disease.