BackgroundDifferences in the post‐acute care (PAC) destinations among racial, ethnic, and socioeconomic groups have been documented before the COVID‐19 pandemic. Yet, the pandemic's impact on these differences remains unknown. We examined the impact of the COVID‐19 pandemic on PAC destinations and its variation by individual race, ethnicity, and socioeconomic status among community‐dwelling older adults with Alzheimer's disease and related dementia (ADRD).MethodsWe linked 2019–2021 national data (Medicare claims, Minimum Data Set, Master Beneficiary Summary File) and several publicly available datasets, including Provider of Services File, Area Deprivation Index, Area Health Resource File, and COVID‐19 infection data. PAC discharge destinations included skilled nursing facilities (SNFs), home health agencies (HHA), and homes without services. Key variables of interest included individual race, ethnicity, and Medicare‐Medicaid dual status. The analytic cohort included 830,656 community‐dwelling Medicare fee‐for‐service beneficiaries with ADRD who were hospitalized between 2019 and 2021. Regression models with hospital random effects and state‐fixed effects were estimated, stratified by the time periods, and adjusted for the individual, hospital, and county‐level covariates.ResultsSNF discharges decreased while home and HHA discharges increased during the pandemic. The trend was more prominent among racial and ethnic minoritized groups and even more so among dual‐eligible beneficiaries. For instance, the reduction in the probabilities of SNF admissions between the pre‐pandemic period and the 2nd year of COVID was 4.6 (White non‐duals), 18.5 (White duals), 8.7 (Black non‐duals), and 20.1 (Black duals) percentage‐point, respectively. We also found that non‐duals were more likely to replace SNF with HHA services, while duals were more likely to be discharged home without HHA.ConclusionsThe COVID‐19 pandemic significantly impacted PAC destinations for individuals with ADRD, especially among socioeconomically disadvantaged and racial and ethnic minoritized populations. Future research is needed to understand if and how these transitions may have affected health outcomes.