U.S. dementia care spending by state: 2010-2019

Area of Science:

• Gerontology
• Public Health
• Health Economics

Background:

• Dementia is a leading cause of death for older adults in the U.S., incurring significant economic costs.
• Existing estimates of dementia's indirect costs are outdated and lack state-level detail.
• Understanding the economic burden of dementia care is crucial for policy and resource allocation.

Purpose of the Study:

• To estimate and project the indirect costs of informal dementia caregiving at the U.S. state level.
• To provide updated cost data from 2010 through 2050.
• To analyze state-level variations in dementia care costs.

Main Methods:

• Utilized data from multiple surveys to calculate cost estimates.
• Developed projections for informal dementia caregiving costs up to 2050.
• Analyzed costs on a per-prevalent-case basis and by state.

Main Results:

• In 2019, the annual replacement cost of informal dementia care was $230 billion, with $58 billion in forgone wages.
• The average replacement cost per case was $42,422, and forgone wages were $10,677.
• Projected costs are expected to nearly double by 2050, reaching $404 billion annually.

Conclusions:

• Informal dementia caregiving represents a substantial economic burden in the United States.
• These costs exhibit significant variation across states and are projected to increase substantially by 2050.
• The findings highlight the need for updated policies and support systems for dementia caregivers.