By Research Area Children, Families, and Communities Cyber and Data Sciences Education and Literacy Energy and Environment Health, Health Care, and Aging Homeland Security and Public Safety Infrastructure and Transportation International Affairs Law and Business National Security and Terrorism Science and Technology Workers and the Workplace

       Given America's rapidly aging population, previously uncertain measures of dementia costs, and the government's recent focus on the issue, an objective assessment of prevalence and costs was necessary to move forward toward an effective policy solution.

       In response, a RAND-led research team developed the most precise estimate to date of the economic burden of the disease. Their study employed a better estimate of dementia prevalence, controlled for costs related to other illnesses suffered by dementia patients, and accounted for variations in severity.

       Research Questions How prevalent is dementia among older Americans? What is the annual economic cost imposed by dementia and what are the main components of these costs? How will these costs increase over time?

       In 2010, more than 14 percent of Americans age 71 or older had dementia. The total economic cost of dementia ranges from $159 billion to $215 billion annually, when the monetary value of informal care is included. The main component of dementia costs is institutional and home-based long-term care—not medical services. Nursing home care plus formal and informal home care represents 75 to 84 percent of dementia costs. By 2040, the total cost of dementia will increase to as much as $511 billion in inflation-adjusted dollars.

       RAND's findings were widely publicized in top-tier newspapers, trade publications, and health policy blogs and continue to guide the discussion on how to address dementia in the United States.

       The study's lead author, Michael D. Hurd, testified before a Senate Special Committee. Hurd recommended a partnership between government and industry to develop a plan that protects the millions of people who will need dementia care by 2040—and prevents Americans from having to spend themselves into poverty to care for the ones they love.

       Connect Contact Us

       Contact Us Locations

       I am interested in Jobs at RAND Media Resources Congressional Resources Doing Business with RAND Supporting RAND Educational Opportunities Alumni Association Follow RAND Corporation on Facebook RAND Corporation on Twitter RAND Corporation on LinkedIn RAND Corporation on YouTube RAND Corporation RSS Feeds RAND Corporation mobile applications

       Stay Informed

       Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most.

       Subscribe View all email newsletters

       Resources Multimedia Latest Reports Browse by Author RAND Classics Databases and Tools Site Information Site Map PRIVACY POLICY Support Policy Feedback Help