US dementia costs reach $818 billion, exceeding cancer and heart disease

US dementia costs reach $818 billion, exceeding cancer and heart disease

Alzheimer's disease and related dementias are projected to cost the United States approximately $818 billion this year, a figure that exceeds the combined costs of cancer and heart disease, according to a study published in Alzheimer's & Dementia: The Journal of the Alzheimer's Association.

The economic burden has risen from $781 billion a year ago, though researchers noted that the previous figure reflected a slightly different methodology for some metrics. Lead researcher Julie Zissimopoulos, a professor at the University of Southern California Price School of Public Policy, described the situation as both a health and an economic crisis for the government and families. She stated that the disease is the most expensive in an aging population, as dementia rates increase with age.

The Breakdown of Costs

The $818 billion total is driven by medical expenses and several often-overlooked factors, including lost earnings, diminished quality of life, and the value of unpaid care. The study identified the largest single cost as the impact on quality of life stemming from declines in independence, function, and cognition, which represented $320 billion.

Other significant financial burdens include:

• Long-term and medical care: Totaling $222 billion. Medicare and Medicaid cover about 70% ($154 billion) of these costs, while patients and families pay $46 billion out of pocket.
• Unpaid caregiving: Estimated at $237 million in one report, while a separate report highlighted by EurekAlert! values this care at $233 billion annually.
• Lost wages: People with dementia and their caregivers lose $23 billion annually in earnings.
• Caregiver strain: Informal care partners face an additional $15 billion in quality-of-life losses due to physical and emotional stress.

The Alzheimer's Association provides further context on the scale of unpaid labor, stating that nearly 13 million Americans provide unpaid care for people with dementia. In 2025, these caregivers provided more than 19 billion hours of care, valued at more than $446 billion. About two-thirds of these caregivers are women, and more than one-third are daughters.

A Growing Demographic Crisis

Currently, 5.7 million people in the U.S. Are living with dementia, though other data indicates more than 7 million Americans have the disease. The Alzheimer's Association reports that an estimated 7.4 million Americans age 65 and older are living with the condition in 2026. The U.S. Census Bureau projects that the population aged 85 and older will more than double by 2050.

Age remains a primary predictor. A 2025 study in the journal Nature Medicine found the lifetime risk of dementia after age 55 is about 42%. For those aged 45, the lifetime risk of Alzheimer's is 1 in 5 for women and 1 in 10 for men. Disparities also exist by ethnicity; older Black Americans are about twice as likely to have dementia as older White Americans, while older Hispanic Americans are about one and one-half times as likely.

Systemic Gaps and Healthcare Challenges

Despite the rising costs, Zissimopoulos noted that there is no universal long-term-care financing. Medicare does not cover assisted living or nursing-home stays. According to CareScout, a private room in a nursing home costs more than $129,000 per year.

The medical infrastructure is also struggling to keep pace. Fifty-five percent of primary care physicians report a lack of dementia care specialists in their communities, and half of those physicians feel inadequately prepared to treat the disease. Projections indicate that between 2024 and 2034, the U.S. Will need nearly 800,000 additional direct care workers.

Future Outlook and Medical Evolution

The financial trajectory remains steep. Health and long-term care costs for those with dementia are projected to reach $409 billion in 2026 and nearly $1 trillion by 2050.

However, researchers are tracking how new developments may alter these costs. The FDA has approved blood tests capable of detecting Alzheimer's before symptoms appear, and new therapies are slowing the disease's progression. Zissimopoulos indicated that modeling these changes can help determine how new treatments might affect the demand for nursing-home care and improve overall quality of life.

Current efforts are also focused on brain health through lifestyle behaviors. While 75% of Americans believe lifestyle habits are important for brain health, only 46% strongly connect these behaviors to reducing dementia risk. The Alzheimer's Association is currently utilizing the U.S. POINTER study to promote combining healthy habits to protect cognitive function.