Dementia Projected to Cost U.S. $818 Billion in 2026

Alzheimer's disease and related dementias will cost the U.S. an estimated $818 billion in 2026, according to a new study published June 24 in Alzheimer's & Dementia. The U.S. Cost of Dementia project produced the estimate using dynamic microsimulation modeling that accounts for medical care, long-term care, unpaid caregiving, lost earnings, and diminished quality of life.

The single largest component is $320 billion from reduced quality of life among people with dementia. Care partners absorb an additional $15 billion in quality-of-life losses. Unpaid caregiving by 5.2 million people totals 6.8 billion hours annually and is valued at $237 billion.

Medical and long-term care costs add another $222 billion, with Medicare and Medicaid covering roughly $154 billion and patients paying about $46 billion out of pocket. People with dementia and their care partners also forgo $23 billion in earnings each year.

The study estimates 5.7 million Americans are living with dementia in 2026, including 5.1 million who are 65 or older. The project is funded through a cooperative agreement with the National Institute on Aging. Principal investigator Julie Zissimopoulos said the annual estimates can help guide resource allocation decisions.

"By providing annual, comprehensive and transparent estimates of dementia's total costs, our research can help guide decisions about how to allocate resources as the dementia population is set to grow substantially," Zissimopoulos said in a statement.