The economic burden of Alzheimer's disease care

• Published in: Health Affairs Vol. 12; no. 2; pp. 164 - 176
• Main Authors: Rice, D P, Fox, P J, Max, W, Webber, P A, Lindeman, D A, Hauck, W W, Segura, E
• Format: Journal Article
• Language: English
• Published: United States Health Affairs 1993; The People to People Health Foundation, Inc., Project HOPE
• Subjects: Activities of daily living; Aged; Aged, 80 and over; Alzheimer Disease - economics; Alzheimer's disease; California; Caregivers; Cognitive ability; Communities; Comprehensive Health Care - economics; Cost of Illness; Cost of living; Data collection; Dementia; Disease; Economic impact; Female; Financial services; Health care expenditures; Health Expenditures; Home Nursing - economics; Humans; Impact analysis; Institutionalization; Institutionalization - economics; Institutionalized persons; Long term health care; Long-term care; Male; Medicaid; Medicare; Neurodegenerative diseases; Nursing; Nursing care; Nursing homes; Older people; Patients; Population; Public health; Public policy; Risk; Social services; Socioeconomic factors; Wages & salaries; California; United States > US; San Francisco California
• ISSN: 0278-2715; 1544-5208
• DOI: 10.1377/hlthaff.12.2.164

This study examines total formal and informal care costs attributable to Alzheimer's disease for persons living in the community and in institutions. The total cost of caring for an Alzheimer's patient in northern California is approximately $47,000 per year whether the patient lives at home or in a nursing home, but the cost breakdown differs in the two settings. For community-resident patients, three-fourths of the total cost represents an imputed value for unpaid informal care compared with 12 percent for institutionalized patients. Formal services are financed primarily by individuals and their families. Over 60 percent of the services provided to patients in either care setting were paid out of pocket. With projected increases in the number of persons at risk of developing Alzheimer's disease, the economic impact of the disease on future long-term care costs will be significant.