Dementia Now Costs the U.S. $818 Billion a Year — More Than Cancer

Alzheimer's disease and dementia have become the most expensive health crisis in America — costing the U.S. about $818 billion this year, more than cancer and heart disease combined. And experts warn it's only going to get worse.

A new study published in *Alzheimer's & Dementia: The Journal of the Alzheimer's Association* tracked these costs, which include not just medical bills but also hidden expenses like lost wages, reduced quality of life, and the unpaid hours that family members spend caring for loved ones.

"People should be alarmed. This is a health crisis. It's also an economic crisis," said lead researcher Julie Zissimopoulos of the University of Southern California.

Here's where the money goes:

• $320 billion — Lost quality of life as patients lose memory, independence, and function
• $237 billion — Unpaid caregiving (5.2 million people provide 6.8 billion hours of free care)
• $222 billion — Long-term care and medical costs
• $23 billion — Lost wages for patients and caregivers

Of the medical and care costs, Medicare and Medicaid (government health programs for the elderly and low-income people) cover about 70% — roughly $154 billion. But patients and families still pay 20% ($46 billion) out of pocket (money they spend directly from their own savings).

The problem is set to grow. The U.S. Census Bureau expects the population aged 85 and older to more than double by 2050. Since age is the biggest risk factor for dementia, this means far more cases ahead. In fact, a 2025 study found the lifetime risk of dementia after age 55 is about 42%.

There are currently 5.7 million Americans living with dementia, a disease with no cure.

One painful gap: Medicare does not pay for long-term care, such as nursing homes or assisted living. A private nursing-home room now costs over $129,000 a year — a bill that falls squarely on families.

The bottom line: Dementia is becoming a massive financial weight on families and the government, with no national system to help pay for the enormous costs of care.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/this-disease-is-more-expensive-than-cancer-and-heart-disease-combined-and-its-only-going-to-get-worse-797b72d9?mod=mw_rss_topstories