Neurological Disease  /  Economic Burden

The prevalence of diseases like Alzheimer's and Parkinson's are skyrocketing as our population ages and they threaten to bankrupt our economy if better treatments and cures aren't found.  5.4 million Americans are currently diagnosed with Alzheimer’s disease. This number will triple to 16 million by the year 2050. Parkinson’s disease affects 1 million Americans, with at least 60,000 new cases occurring each year.

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    • For families of loved ones with dementia, their out-of-pocket spending in the last 5 years before death was $61,522 compared to $34,068 without dementia.  Informal costs were $83,022 for people…  
    • Medicaid expenditures for people who died of dementia were $35,346 in the 5 years before death, compared to $4,552 for those without dementia.  
    • Spending on dementia
      Health care spending for dementia patients in their last 5 years of life is more than $250,000 per person.  This is 57% greater than costs associated with death from other…  
    • Average informal care costs over a five year period were estimated to be $83,022 for people with dementia vs. $38,272 fo
      Average informal care costs over a five year period were estimated to be $83,022 for people with dementia vs. $38,272 for those without dementia.  
    • Average out-of-pocket spending over a five year period for those with dementia was $61,522 compared to $34,068 for those
      Average out-of-pocket spending over a five year period for those with dementia was $61,522 compared to $34,068 for those without dementia.  
    • Between 2005 and 2010, total health care spending for people with dementia was more than $287,000 per person, nearly 60
      Between 2005 and 2010, total health care spending for people with dementia was more than $287,000 per person, nearly 60% percent greater than costs associated with death from other diseases, such as cancer…  
    • The cost of nursing homes for Parkinson’s patients totaled $5 billion in 2010.  
    • Medical expenses for Parkinson’s alone costs $8.1 billion or $12,800 per person in 2010.  
    • Therapeutic surgery for those with Parkinson’s can cost approximately $100,000 per patient.  
    • Parkinson’s disease cost our nation $25 billion each year in direct and indirect costs.  
    • It costs an average of $4,766 more on healthcare per year for family caregivers who are caring for someone with Alzheimer’s compared to non-caregivers.  
    • Medicaid recipients with Alzheimer’s disease have spending that is 9 times higher than for those without the disease.  
    • Medicare beneficiaries with Alzheimer’s disease have payments that are 3 times higher than beneficiaries without the disease.  
    • In 2012, Alzheimer’s disease costs up to $216 billion in care value.  
    • Alzheimer’s disease cost $203 billion in 2013.  
    • In addition to the estimated $14.4 billion a year in costs for Parkinson’s disease to the nation, an additional $6.3 billion in indirect costs (missed work or loss of job…  
    • Individuals with Parkinson’s disease in 2010 incurred medical expenses of $22,800 per patient (in PD-related expenses)–$12,800 higher than someone without the disease.  
    • The national economic burden of Parkinson’s disease in 20130 exceeded $14.4 billion–approximately $22,800 per patient.  
    • Alzheimers disease caregiver hospital or emergency room visits doubled from beginning to end of an 18-month study to the finish, from 6.3 stays to 12.5 total visits per 100 caregivers.  
    • Over the course of an 18-month study, Alzheimer’s disease caregivers showed a 25% increase in the utilization of all types of health care services.  
    • A caregiver providing care for an individual with Alzheimer’s disease on average costs $4,766 more in health care service per year (per person) than a non-caregiver.  
    • Over 15 million Americans provide unpaid care for a person with Alzheimer’s disease or other dementias.  
    • In 2008, Medicare beneficiaries age 65 and older with Alzheimer’s and other dementias paid $9,368 out-of-pocket on average for health care and long-term care services that were not covered by additional sources.  
    • Medicaid paid $23,953 (in 2011 dollars) per person for Medicare beneficiaries with Alzheimer’s and other dementias living in a long-term care facility compared with $222 for those with the diagnosis…  
    • Among nursing home residents with Alzheimer’s disease and other dementias, 51 percent rely on Medicaid to help pay for their nursing home care.  
    • In 2011, the average cost for a nonmedical home health aide was $21 per hour, or $168 for an eight-hour day.  
    • In 2008, 23% of Medicare beneficiaries age 65 and older with Alzheimer’s disease and other dementias had at least one home health visit during the year, compared with 10% of Medicare beneficiaries without Alzheimer’s…  
    • In 2008, there were 349 skilled nursing facility stays per 1,000 beneficiaries with Alzheimer’s and other dementias compared with 39 stays per 1,000 beneficiaries for people without these conditions.  
    • In 2008, there were 780 hospital stays per 1,000 Medicare beneficiaries age 65 and older with Alzheimer’s disease or other dementias compared with 234 hospital stays per 1,000 Medicare beneficiaries without these conditions.  
    • 29% of older individuals withAlzheimer’s disease and other dementias who have Medicare also have Medicaid coverage, compared with 11% of individuals without dementia.  
    • The estimated  economic value of the care provided by family and other unpaid caregivers of people with Alzheimer’s disease and other dementias was $210.5 billion in 2011.  
    • In 2011, the 15.2 million family and other unpaid caregivers of people with Alzheimer’s disease and other dementias provided an estimated 17.4 billion hours of unpaid care.  
    • In 2008, average Medicaid payments per person for Medicare beneficiaries age 65 and older with Alzheimer’s and other dementias were 19 times as great as average Medicaid payments for Medicare…  
    • Medicare beneficiaries with Alzheimer’s and other dementias were three times as great as payments for other Medicare beneficiaries in the same age group ($43,847 per person for those with Alzheimer’s and other dementias compared…  
    • Eighty percent of Alzheimer’s care provided at home is delivered by family caregivers; fewer than 10 percent of older adults receive all of their care from paid workers.  
    • Sixty-four percent of Medicare beneficiaries aged ≥65 years living in a nursing home have Alzheimer’s disease and other dementias.  
    • Twenty-nine percent of older individuals with Alzheimer’s disease and other dementias who have Medicare also have Medicaid coverage, compared with 11% of individuals without dementia.  
    • 43% of all of Genworth’s total claims in payment, and 49% of all claims dollars, are due to Alzheimer’s and other dementias.  
    • In 2004, total per person payments from all sources for health care, long-term care and hospice were 3 times higher for Medicare beneficiaries aged 65 and older with Alzheimer’s and…  
    • Among nursing home residents in the U.S. with Alzheimer’s and other dementias, 51% relied on Medicaid to help pay for their nursing home care in 2000.  
    • One study approximated that in 2002, employees who were caregivers of people with Alzheimer’s and other dementias cost U.S. businesses $36.5 billion.  
    • In 2005, the total annual per person costs for patients with Parkinson’s disease was $23,101 in direct costs and $25,326 in indirect costs.  
    • Parkinson’s disease patients use significantly more health care services in all categories and pay more out-of-pocket for their medical services than other seniors–averaging $18,528 in annual health care expenses versus…  
    • Of those Parkinson’s patients with private insurance (including those who also had Medicare), total annual healthcare expenditures were $16,634 per patient (in 2002 dollars). This figure was 2.5 times the…  
    • About 34% of Parkinson’s patients received informal care. The caregiver contributed an average of 22 hours of care per week.  
    • Direct medical costs of Parkinson’s disease are more than double costs of those without the disease by 5 years after diagnosis.  
    • In late stage Parkinson’s disease, as much as 80% of total costs of disease are due to indirect costs such as loss of income from patient and caregivers and poor…  
    • In 2005, the total annual direct and indirect costs to the nation for Parkinson’s disease was projected to be at least $23 billion.  
    • In 2008, the economic value of care provided by an unpaid caregiver of someone with Alzheimer’s disease or other dementia was $94 billion.  
    • In 2004, the average per person payments for hospice care of beneficiaries age 65 and older with Alzheimer’s disease or other dementia were 8 times higher than for other beneficiaries…  
    • Out-of-pocket costs for Medicare beneficiaries age 65 and older with Alzheimer’s disease and other dementias who were living in the community were 1.2 times higher than the average for all…  
    • In Alzheimer’s special care units or wings of nursing homes, the average cost for a private room in 2008 was $219 a day and $79,935 a year. The average cost…  
    • In 2008, 52% of assisted living facilities provided specialized Alzheimer’s disease and other dementia care–charging an average of $4,267 a month and $51,204 a year.  
    • In 2004, average Medicaid payments per person for Medicare beneficiaries age 65 and older with Alzheimer’s disease and other dementias were more than 9 times as high as the average…  
    • In 2004, total per-person payments for Medicare beneficiaries age 65 and older with Alzheimer’s disease and other dementias (including all sources for health and long-term care) were $33,007–compared to $10,603…  
    • Alzheimer’s disease triples the healthcare costs of Americans age 65 and older.  
    • In 2005, the direct costs to Medicare and Medicaid for individuals with Alzheimer’s disease and other dementias, plus the estimated indirect costs to businesses of employees who were caregivers to…  
    • In 2000, 29% of Medicare beneficiaries age 65 and older with Alzheimer’s disease or other dementias were also Medicaid beneficiaries.  
    • In 2000, total Medicare costs per person for beneficiaries with diabetes and Alzheimer’s or another dementia were $19,994, compared with $8,011 for beneficiaries with diabetes but no Alzheimer’s or other…  
    • In 2007, the value of care provided by unpaid caregivers of people with Alzheimer’s and other dementias was $89 billion.  
    • Close to 10 million Americans provide unpaid care for people with dementia. In 2007, they provided 8.4 billion hours of unpaid care, valued at $89 million.  
    • Beneficiaries with Alzheimer’s disease account for 34% of Medicare spending but make up only 12.8% of the 65 and older population.  
    • As the prevalence and impact of Alzheimer’s disease grows, so does the cost to the nation. The direct and indirect cost of Alzheimer’s and other dementias amount to more than…  
    • Alzheimer’s disease drains more than $148 billion from the nation’s economy each year.  
    • Drug therapy for Parkinson’s disease costs more than $6 billion a year. Costs such as rehabilitation and home care can run as high as $150,000 per patient, per year.  
    • Average Medicare Costs for Beneficiaries Age 65+ with Alzheimer’s Disease and Other Dementias Compared with Costs for Other Beneficiaries, 2000  
    • Average Medicare Costs for Hospital, Nursing Home and Home Health Care for Beneficiaries Age 65+ with Alzheimer’s Disease and Other Dementias Compared with Other Beneficiaries, 2000  
    • Total business costs for Alzheimer’s disease, 1998 to 2002  
    • In 2002, nearly 1/3 of community-living older individuals with cognitive impairment who received daily activity assistance used paid services, which were usually combined with unpaid assistance. 12% of those who…  
    • Dementia is correlated with a significantly higher out-of-pocket expenditure for medical care compared with those who have normal cognitive function. In 1995, the annual out-of-pocket expenditure was $1,350 for Americans…  
    • Unpaid caregivers of Americans with Alzheimer’s disease or another dementia provide the U.S. with an economic asset worth almost $83 billion in 2005.  
    • In 2002, Medicare beneficiaries age 65 and older who had been diagnosed with Alzheimer’s or other dementias had to pay 37% of nursing home care costs out of pocket.  
    • In 2003, Medicare beneficiaries age 65 and older who were diagnosed with Alzheimer’s or other dementias spent an average of $3,455 (22%) of their income on health care.  
    • “Costs to business for employees who are caregivers of people with Alzheimer’s and other dementias amount to $36.5 billion. These costs result from lost productivity, missed work and costs to…  
    • Direct and indirect costs of Alzheimer’s and other dementias are more than $148 billion annually.  
    • Compared to a person who does not have dementia, the hospital costs for someone who has been diagnosed with Alzheimer’s disease were, on average, 3.2 times higher.  
    • On average, Medicare spends about 3 times more per beneficiary diagnosed with Alzheimer’s or other dementias, compared to someone who does not have dementia ($13,207 compared to $4,454).  
    • Caring for a person with Alzheimer’s disease often takes a financial toll on the caregiver. Among non-spouse caregivers, 49% provided financial assistance at an average of $218/month.  
    • The additional annual cost of informal caregiving per person was $3,630 for mild dementia, $7,420 for moderate dementia, and $17,700 for severe dementia. Total national annual cost of caregiving…  
    • The single costs for assisted living and nursing home care of a single Parkinson’s patient can cost as much as $100,000 per year.  
    • Parkinson’s disease costs our society at least $25 billion annually.  
    • State and federal Medicaid spending on nursing home care for beneficiaries with Alzheimer’s disease was $19 billion in 2000.  
    • In 2005, Medicare spent $91 billion caring for those with Alzheimer’s disease.