U.S. Dementia Costs to Exceed $780 Billion This Year, USC-Led Research Finds

Source: USC Schaeffer Institute for Public Policy & Government Service
Published Date: April 23, 2025
By USC Schaeffer Center

A new study from the USC Schaeffer Center reveals that the total economic burden of Alzheimer’s disease and related dementias in the United States is projected to reach $781 billion in 2025. This comprehensive estimate includes not only direct medical and long-term care costs but also factors in lost earnings and diminished quality of life for both patients and their caregivers.

A research team, led by Julie Zissimopoulos, created a special computer model that uses information from national surveys and health records to estimate how much dementia costs each year. This model takes into account the different stages of the disease and looks at how new treatments and care plans could affect costs.

Key findings from the study include:

– Medical and long-term care expenses for dementia patients are estimated at $232 billion for 2025, with $52 billion paid out-of-pocket by patients and families.

– Medicare and Medicaid are projected to cover $106 billion and $58 billion, respectively.

– The decline in quality of life is valued at $302 billion for patients and $6 billion for caregivers.

– Unpaid caregiving accounts for 6.8 billion hours, valued at $233 billion.

The study emphasizes the importance of understanding the full scope of dementia’s economic impact to inform policies and interventions aimed at reducing this burden. The researchers plan to update these estimates annually to track changes over time.