A dementia diagnosis for you or a loved one can bring up a lot of worry and emotions. If you’re navigating the healthcare system, you probably have a lot of questions, including what happens next, what support is available, who pays for dementia care in Australia, and what is covered by your health insurance. We’re here to help you navigate your options.
Dementia can be a devastating diagnosis – but it’s also common. In 2025 there are an estimated 433,300 people living with all forms of dementia in Australia, according to Dementia Australia. It is more common in people over 65.
“When a person is diagnosed with dementia, they and those closest to them may experience a range of emotions,” says Dementia Australia CEO Professor Tanya Buchanan.
“They might feel shocked, angry, scared, sad, frustrated, embarrassed, or even disbelief. Everyone reacts differently. There’s no wrong way to react. The important thing to know is that you are not alone.”
This guide outlines where you can find the support and help you need.
Who pays for dementia care in Australia?
Dementia care can be funded in several different ways. Many treatments and services are covered by Medicare and government programs, but there are also some services that your private health insurance can pay benefits towards.
Having the right private health insurance coverage could help ease the burden of paying for support services like physiotherapy or counselling services that may improve your quality of life if you’re living with dementia.
Understanding your health cover options
It’s important to review your private health insurance and talk to your provider about specific benefits they offer at different policy levels.
When you’re looking at your existing policy, it’s important to look at:
- What level of hospital cover you have
- Whether you have extras cover for supporting therapies such as counselling and physiotherapy
- Any waiting periods that may apply for specific services.
Your health insurance can complement your Medicare and government support, and to help provide more comprehensive dementia care.
What is the difference between cognitive impairment and dementia?
Cognitive impairment and dementia are different points on the spectrum of cognitive decline. With mild cognitive impairment (MCI), you might notice changes in memory and thinking skills, such as forgetting appointments or having trouble paying attention, but it usually doesn’t significantly impact your daily life. Dementia, however, involves a more severe decline that can interfere with your independence and daily functioning.
While having MCI doesn’t mean you will develop dementia, you’re 3 to 5 times more likely to develop dementia – especially Alzheimer’s disease – than other people your age, reports Dementia Australia.
The importance of early dementia care
Prof Buchanan says getting an early diagnosis is crucial because there are many ways you can manage symptoms and potentially delay progression of the disease.
“The right support at the right time can enable people with dementia to maintain their independence and functional capacity for as long as possible,” Prof Buchanan says.
Early diagnosis means you can:
- Seek counselling to help you manage the emotions related to your diagnosis
- Engage in a range of interventions which may slow the progress of your dementia
- Plan for the future, including making financial and legal decisions, preparing health directives, and making lifestyle changes to support you when you may need help with activities such as driving.
Getting help with dementia care
If you’re dealing with dementia in Australia, help is available. Here’s where you can get the support you need:
- Visit Dementia Australia for comprehensive guidance and support services, or call the Dementia Helpline 24 hours a day, 7 days a week on 1800 100 500.
- Contact My Aged Care, for help to assess your eligibility for government support.
- Discuss your treatment options with your GP or specialist.
- Speak with your private health insurer about your level of available benefits, and whether it’s worth upgrading your cover. If you are a Medibank member, or want to be, call us on 132 331.
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