The Financial Costs of Dementia

(My Brain Test)

No one really considers the financial burden of dementia on the populace, as a whole.  We are more prone to accept fundraising for cancer, heart disease, birth defects, and other foundations while pushing the plight of the elderly to the side, for the most part.   However, it has become increasingly clear that dementia costs are dramatically higher than for those others, and those costs are about to grow exponentially.

There is an article in the New York Times, as well, which exemplifies the costs of dementia are growing quickly, as well! (Costs for Dementia Care Far Exceeding Other Diseases …)

To put things into perspective, insofar as the costs, let’s look at the chart below, which demonstrates the costs of dementia compared to the revenue of two major corporations:

(alzheimer a doença, você e eu)

If Dementia were its own country, it would be the 18th largest economy in the world.  The costs are nearly double the revenue of Exxon Mobil!  And these are the figures from 5 years ago!  Since then, the numbers have only grown.  

According to the Lewy Body Dementia Association:

The total economic cost of dementia in 2010 was estimated to be $109 billion for care purchased, and $159 billion to $215 billion when the monetary value of informal care is included. The range of estimates reflects two different methods researchers used to place a value on unpaid care. The per-person cost of dementia was $56,290 or $41,689. Medicare paid about $11 billion of dementia-related costs.

Researchers say the main component of the dementia costs is for institutional and home-based long-term care rather than medical services. The cost of nursing home care and formal and informal home care comprise 75 percent to 84 percent of dementia costs.(Cost of Dementia Tops $157 Billion Annually in the United …)

So, what does that mean for you and me?  It means that paying attention to your family members and being willing to understand that this syndrome (yes, the medical community is moving toward having dementia made a syndrome, as it  has so many more components than originally understood) will affect more people around you than was understood in the past.  

President Obama, in 2011, signed the National Alzheimer’s Project Act, which tracks the costs of dementia, and ensures good care is provided while also seeking more treatments and research to help with the problem of rising costs and rising patient numbers.  

According to the New England Journal of Medicine:

The estimated prevalence of dementia among persons older than 70 years of age in the United States in 2010 was 14.7%. The yearly monetary cost per person that was attributable to dementia was either $56,290 (95% confidence interval [CI], $42,746 to $69,834) or $41,689 (95% CI, $31,017 to $52,362), depending on the method used to value informal care. These individual costs suggest that the total monetary cost of dementia in 2010 was between $157 billion and $215 billion. Medicare paid approximately $11 billion of this cost.(Monetary Costs of Dementia in the United States)

To be honest, it is quite difficult to find any care center that will charge much less than $5,000 per month; we were fortunate to find such a place.  I hear stories of people who are paying between $6-10,000 per month- and that doesn’t necessarily cover the medical bills (doctor, neurologist, medications, etc).  Some of these placements, too, will care for the patients until they are unable to be mobile, and at that time need to find another placement (I find this absolutely cruel, as the change of placement and the confusion that surrounds it could compound issues for the patient, leading to a faster demise).  

In home care, too, can be quite costly, unless you have a compliant patient ( the opposite of Mom), and a solid network of resources for respite.  There are adult daycares in most areas which will help with mildly demented patients, but after a time these will not be a viable option, either.  Visiting Angels is a great resource I’ve known people to use (for cancer patients, dementia, and other illnesses), and they charge about $20.00 per hour, which for some might be steep on a limited income, and they are not replacements for nursing care.  

According to the Alzheimer’s Association when planning financially for dementia, the list is as follows:

Common care costs include:

• Ongoing medical treatment for Alzheimer's-related symptoms, diagnosis and follow-up visits
• Treatment or medical equipment for other medical conditions
• Safety-related expenses, such as home safety modifications or safety services for a person who wanders
• Prescription drugs
• Personal care supplies
• Adult day care services
• In-home care services
• Full-time residential care services

Are you prepared?  Luckily, Mom was a saver, and what she had combined with her SSI and pensions helps pay the costs of her care, as well as the sale of her home (which was invested).  So, we are fortunate with that aspect.  But, have you and your family considered a plan, just in case?  It might be wise to avoid being a statistic.

One of the greatest gifts I received this year for Christmas was a donation made in Mom’s name to the Lewy Body Dementia Association.  Words cannot convey the depth of feeling this parlayed, as it came from such an unlikely source, as was so very generous in spirit and amount.  

If you believe you have the capacity to donate to either the Alzheimer’s Association, or the Lewy Body Dementia Association at some time in the future, please do.  Every bit helps, and the sooner we can begin to understand the facets of the syndromes, the sooner we may be able to allay the unforeseen costs.