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Memory Care Facilities That Accept Medicaid (2027 Guide)

By Modinul Islam Khan Updated October 17, 2026

Reviewed October 17, 2026. Many memory care facilities accept Medicaid, but how Medicaid pays depends on the type of facility. In a nursing home, including a dementia or memory care unit inside a nursing home, Medicaid can pay for care, room and meals once you qualify. In an assisted living memory care community, Medicaid (through a state waiver or program) can pay for care services, but federal rules generally don’t let it pay for room and board, so you or your family usually pay that part.

Quick answer: To find memory care facilities near you that accept Medicaid, (1) ask your state Medicaid agency or Area Agency on Aging which long-term care programs cover memory care, (2) search nursing homes on Medicare’s Care Compare and call to ask whether they have a memory care unit and Medicaid beds, and (3) ask assisted living communities whether they take your state’s Medicaid waiver. The Eldercare Locator (1-800-677-1116) connects you to local help. Medicare doesn’t pay for long-term memory care.

Does Medicaid pay for memory care?

Yes, through two main routes:

Nursing facility care. Nursing facility services are a mandatory Medicaid benefit for people 21 and older who need that level of care, and Medicaid.gov notes states can’t use waiting lists for it, unlike home and community-based services. (Medicaid.gov: Nursing facilities) Many nursing homes have secured dementia units; whether a specific unit has a Medicaid bed open is up to the facility.
Home and community-based services (HCBS). States can use Section 1915(c) waivers and other HCBS options to pay for personal care, case management, adult day health, respite and similar services, including in assisted living. States set the maximum number of people a waiver serves and can target it by age or diagnosis, so many have waitlists. (Medicaid.gov: 1915(c) waivers)

The key limit: federal law lets 1915(c) waivers pay for services “other than room and board,” with narrow exceptions such as short-term respite. (CMS: Preventing unallowable costs) That’s why a Medicaid waiver can lower an assisted living memory care bill but rarely covers all of it.

Nursing home memory care vs assisted living memory care

	Nursing home (incl. dementia unit)	Assisted living memory care
Medicaid route	Mandatory nursing facility benefit	State HCBS waiver or program (optional, varies by state)
Room and board	Included in Medicaid payment	Generally not paid by Medicaid; resident pays
Waitlists	Not allowed for the benefit itself (bed availability varies)	Common
Level of care needed	Nursing facility level of care	Usually nursing facility level of care for waiver eligibility

Does Medicare cover memory care?

No, not long-term. Medicare.gov says Medicare doesn’t pay for long-term care or custodial care when that is the only care you need, and that people may qualify for long-term care through Medicaid. (Medicare.gov: Long-term care) What Medicare does cover:

Short-term skilled nursing facility care after a qualifying inpatient hospital stay of at least three days: up to 100 days per benefit period. In 2026 you pay $0 for days 1-20 after the Part A deductible ($1,736) and $217 a day for days 21-100. 2027 amounts haven’t been published yet. (Medicare.gov, CMS 2026 fact sheet)
Doctor visits, cognitive assessments, hospital care and drugs under Parts A, B and D, and hospice care when someone qualifies.
The GUIDE dementia care model, a CMS pilot running with participating providers since July 2024, offers care coordination and caregiver support, including respite of about $2,500 a year, adjusted for inflation ($2,625 in 2026), for eligible people living at home. CMS says that starting July 2026, people living in memory care units are no longer eligible for GUIDE, and long-term nursing home residents are excluded. (CMS: GUIDE FAQs, CMS MLN fact sheet)

If you have both Medicare and Medicaid, see dual eligibility for Medicare and Medicaid.

Who qualifies for Medicaid memory care?

You need to meet your state’s medical rule (usually needing a nursing facility level of care) and its financial rules. Federal standards set the outer limits; states set the details.

Federal standard	2026 amount
SSI federal benefit rate	$994 a month (individual)
Special income level (300% of SSI), used by many states for long-term care	$2,982 a month
SSI resource limit (many states use $2,000)	$2,000 individual / $3,000 couple
Community spouse resource allowance	$32,532 minimum / $162,660 maximum
Minimum monthly maintenance needs allowance (spouse at home)	$2,705 (from July 1, 2026; higher in Alaska and Hawaii); maximum $4,066.50
Home equity limit	$752,000 minimum / $1,130,000 maximum (state choice)

Source: CMS 2026 SSI and spousal impoverishment standards. Your state’s limits may differ.

2027 update: Social Security has announced a 3.6% COLA, raising the SSI individual rate to $1,029 a month in January 2027. (SSA 2027 COLA fact sheet) CMS hasn’t yet published its 2027 spousal impoverishment and special income standards; we’ll update this page when it does.

Two more rules matter for families:

Look-back period. Medicaid reviews asset transfers made in the 60 months before you apply for long-term care; gifts or below-value sales can cause a penalty period. (Social Security Act §1917)
Spousal protections. Spousal impoverishment rules let the spouse at home keep income and assets, and they apply to certain HCBS waiver recipients as well as nursing home residents. (Medicaid.gov)

If your income or assets are too high, your state may allow a Medicaid spend-down. You can check your options with our Medicaid eligibility tool guide.

State programs that help pay for assisted living memory care

Florida: The Statewide Medicaid Managed Care Long-Term Care program covers assisted living among its services for people 18+ who need a nursing home level of care. Screening is through your local Aging and Disability Resource Center, and there’s a waitlist released by priority score, not time on the list. (Florida AHCA) Tampa families can also see our list of Tampa memory care facilities.
Texas: STAR+PLUS home and community-based services include assisted living for adults 21+ who need nursing facility care; members pay room and board. There’s an interest list (call 1-877-438-5658), though people already in Medicaid managed care may bypass it. (Texas HHS)
California: The Assisted Living Waiver serves Medi-Cal members 21+ with no share of cost who need nursing facility care, in 15 counties including Los Angeles, San Diego and Sacramento. Participants pay the facility for room and board, and DHCS says there is currently a waitlist. (California DHCS)
New York: The Assisted Living Program serves people medically eligible for nursing home care and covers personal care, room, board, supervision and nursing; Medicaid recipients need approval from their local social services district. (NY Department of Health)

Other states have similar programs. Our guide to Medicaid and Medicare assisted living programs explains the options.

How to find memory care facilities near you that accept Medicaid

Call your Area Agency on Aging or state Medicaid agency. Ask which programs pay for memory care, whether there’s a waitlist and how the level-of-care assessment works. The Eldercare Locator (call or text 1-800-677-1116) finds your local agency.
Search nursing homes on Medicare Care Compare. Medicare.gov notes that most, but not all, nursing homes accept Medicaid. Call each one and ask whether it has a secured memory care unit and a Medicaid bed available.
Ask assisted living communities the right questions: Do you accept our state’s Medicaid waiver? How many Medicaid residents do you take? What is the monthly room-and-board charge? What happens if a private-pay resident later switches to Medicaid?
Apply early. Long-term care applications take time, and some facilities admit residents with Medicaid pending.
Visit in person and review inspection results before you choose.

For full nursing home rules, read Medicaid for nursing home care.

Frequently asked questions

Do memory care facilities accept Medicaid?

Many do, but not all. Nursing homes with dementia units commonly take Medicaid. Assisted living memory care communities accept Medicaid only if they contract with your state’s waiver program, and you usually pay room and board.

Does Medicare pay for memory care facilities?

No. Medicare doesn’t cover long-term custodial care. It covers up to 100 days of skilled nursing care after a qualifying hospital stay, plus medical care.

Will Medicaid pay for memory care in assisted living?

It can pay for care services through a state waiver or program, but federal rules generally bar Medicaid waivers from paying room and board.

How do I find Medicaid memory care facilities near me?

Start with your Area Agency on Aging (Eldercare Locator, 1-800-677-1116), then use Medicare Care Compare for nursing homes and call facilities to confirm Medicaid beds.

What if my parent runs out of money in private-pay memory care?

Ask the facility before move-in whether residents can stay after switching to Medicaid. Apply for Medicaid as soon as assets near your state’s limit, keeping the 60-month look-back in mind.

This article is general information, not legal or financial advice. Medicare365 is an independent website and is not affiliated with any U.S. government agency or state Medicaid program. Rules and limits vary by state; check with your state Medicaid agency.