Alzheimer’s Costs

Alzheimer’s disease is a radical form of dementia that plagues the elderly all over the
world. To contextualize the current state of medical research, it is currently unknown what
directly causes the disease, and how it can be prevented. Furthermore, there are many theories
relating to what causes the disease and how it can be avoided, none of which are concrete.
Although public awareness of Alzheimer’s has increased in recent years, research funding has
mostly dwindled. This is a worldwide and highly relevant issue in regards to not only the lives
of the afflicted, but the economic ramifications that stem from the copious amounts of money
spent on long-term care and treatment. Millions of people all over the world suffer from
dementia and Alzheimer’s, which costs billions in treatment and care, and this issue doesn’t
seem to be moving towards a solution, at any pace. The fact of the matter is that while
Alzheimer’s disease has gained considerable public awareness, it doesn’t receive the research
funding it deserves and requires.
According to Scott Hannaford of The Sydney Morning Herald in Sydney, Australia;
Alzheimer’s Disease accounts for a staggering 60% of dementia cases, and costs a minimum of

$4.9 billion dollars every year for treatment and care in Australia. Today’s Alzheimer’s tests
are very expensive, and seem to be losing funding, because the results don’t justify the cost of
research. It seems prudent for governments in developed countries to relinquish the funds
needed for Alzheimer’s research, because the cost of care and treatment monumentally
outweighs the amount of funds necessary for research many times over. It seems wiser to
pursue research now, rather than have such a drain on the economy, but with countless other
demanding issues across the globe, Alzheimer’s disease research funding is not very high on
the priority list. In today’s world, this is understandable. However, from an economic
standpoint, the $156 billion that goes into treatment annually across the globe is unacceptable.
We simply cannot afford to perpetuate the problem as we have so far.
In John O’Connor’s article that covers a recent study, he highlights some of the faults
in how this issue of Alzheimer’s disease is being addressed in the U.S. O’Connor states that
“The annual costs of dementia care could more than double by 2040 if the age-specific
prevalence rate of the disease remains constant as the nation's population grows older”
(O’Connor, Assisted Living). This statement reinforces the claim that if Alzheimer’s disease
research doesn’t receive the funding it needs to move forward in the near future, costs of care
will continue to grow exponentially, further increasing the financial drain on the economy. In
other words, this debilitating disease doesn’t receive the attention and funding it needs in order
to decrease the massive amount of money that is spent annually for long-term care of those
who suffer from Alzheimer’s disease. This claim of fact is supported by Regina A. Shih, the
lead author of the study covered by O’Connor, who states that "The majority of Americans'
cost-burden for dementia is caused by long-term care." (O’Connor, Assisted Living)

The number of people affected by Alzheimer’s disease and dementia across the globe
(according to Karger, a medical and scientific publishing site) is an estimated 27.7 million, and
based on that figure, 156 billion dollars is being spent annually worldwide. While these
numbers may not be 100% accurate, they prove that this disease is one of the most expensive
medical conditions in the world. As stated in the article “Economic Considerations in
Alzheimer’s Disease”, here in the United States, Alzheimer’s disease is the third most costly
disease. It is said to be costing our country $100 billion every year, with roughly 4.5 million
people diagnosed. In correlation, this statistic is a remarkable two-thirds of the worldwide cost,
possibly due to a higher awareness and increased number of diagnoses in the United States,
compared to other nations.
Suffice it to say that this disease is not only robbing many elderly people of their
quality of life, but it’s also an incredibly expensive drain on not only the economy of America,
but of the entire world. This fact has clearly been recognized by many journalists and
researchers; however, very little is being done to solve the issue. This is possibly due to the
fact that although Alzheimer’s has been a known form of dementia for over 30 years, a
miniscule amount of progress has been made towards developing a cure. However, the science
and medical community is aware of the tremendous cost of treatment and care, which is the
first step in finding a solution.
Why do dementia and Alzheimer’s receive such a miniscule amount of research
funding? If so many senior citizens across the world are suffering from this terrible affliction,
why has there been so little progress? Some may speculate that the reason is because treatment
and care for these conditions brings in massive amounts of money, and that if it was cured, that
income would dissipate. However, that is an entirely different topic altogether. I prefer to

believe that, in truth, the actual reason is far less sinister in nature. Although projects and
experiments have been put into effect, such few advancements have been made that it is
difficult to justify the billions required for research.
According to freelance journalist Beth Baker, one such project that was initiated in
2010 is known as the National Alzheimer’s Project Act, which was passed by Congress.
(Baker) The goal of this act was to “implement a national strategy to fight the disease and
improve support of patients and families.” (Baker) The reason for this act to be passed by
Congress is because of the massive amounts of funds spent on long-term care. (Baker)
Furthermore, scientist and policy makers are very keen on finding a solution because of all this
money that’s spent annually. (Baker) Baker goes on to write: “In 2010, health care for
dementia patients — including long-term and hospice care — was expected to cost $172
billion, including $123 billion paid by Medicare and Medicaid.” It is also estimated by the
Alzheimer’s Organization that by the year 2050, the number of people diagnosed with
Alzheimer’s disease may reach 13.5 million, with the amount of money being spent in care
costs an astounding $1 trillion annually. (Baker) This is what’s causing the sudden economic
worries of the science and medicine communities, and understandably so.
Adriel Bettelheim of the CQ Researcher contends that “...Alzheimer's still suffers from
the image of being an old person's disease.” Bettelheim supports this claim of cause by
providing the example: “Even former President Ronald Reagan's 1994 announcement that he
had the early stages of the disease didn't prompt a flood of new money for finding a cure.”
Bettelheim also writes that this may have a hand in the lack of concern that is sometimes
exhibited by society in relation to this disease. Some may think the research funds it needs
aren’t justifiable in comparison to other more common and malicious diseases, such as cancer.

Although people may not voice this particular opinion, it’s still a common one: that even if
cured of Alzheimer’s, the elderly only have a handful of years to live, regardless. (Bettelheim)
According to Sharon Wallace Stark, Ph.D., another cause for the seeming reluctance to
devote the research funds necessary for progress may be that after years of meticulous
research, there has yet to be a method identified of halting or reversing the effects of
Alzheimer’s disease. There have been various drugs that help to slow the progress, but they
remain equally ineffective at stopping the development of the disease (Stark). In regards to
those who are making the effort to discover a solution to this problem, Stark states that “The
NIA Alzheimer’s Disease Prevention Initiative seeks to accelerate the rate of new drug
discovery and development.” Also, “The Alzheimer’s Association is a national organization
that provides patient advocacy and funding for research of potential new therapies.” (Stark)
The cause of Alzheimer’s disease itself remains a mystery, but there are several
theories on how it develops and what can be done to prevent it, although none of these theories
are definitive, or help to develop a cure. However, the cause of the colossal amount of funds
that go into direct-care of the diagnosed is evident. The amount of money that’s required to
attempt to provide the afflicted with the best quality of life possible is incredibly expensive,
and is a massive drain on Medicare and Medicaid. If we can’t find a solution to this economic
crisis, Alzheimer’s disease will continue to be a growing burden on societies worldwide.
It is blatantly evident that Alzheimer’s disease is a malicious illness that is costing the
world billions of dollars every year, due to the excessive treatment and care costs. However,
thanks to organizations such as the Alzheimer’s Association, public and private awareness has
risen substantially over the years, although awareness can only accomplish so much. Now that
we as a nation are more aware of the problem, and what is causing it, it is past time to find a

solution to this drain on the economy and health care system. What should be done to remedy
this issue that is plaguing developed nations worldwide? What changes to policy need to be
made in order to make progress?
As stated by an entry on the Health and Wellness Resource Center database, some
previous changes to national policy for Alzheimer’s disease patients had been put into effect in
regards to Medicare in 2001. (Gale Cengage Learning) The entry claims “The White House
has quietly authorized Medicare coverage for the treatment of Alzheimer's disease (AD). The
policy change, initiated late last year, means that Medicare beneficiaries cannot be denied
reimbursement for the costs of mental health services, hospice care or home health care
because they have the disease.” (“Medicare Coverage Authorized for Alzheimer’s Disease”)
The reason why they made this change to policy is because doctors and other licensed parties
in the medical community had developed the ability to diagnose the disease while it was still in
it’s early stages, at a time when patients are able to gain benefits from medical services.
(“Medicare Coverage Authorized for Alzheimer’s Disease”). This was an important step that
may have led to some of the more recent policy changes, and will undoubtedly lead to even
more beneficial changes in the future.
As stated by the previously mentioned Alzheimer’s Association, the most detrimental
change to policy that needs to be made is research funding (Alz.org). It is imperative to
persuade Congress that Alzheimer’s disease doesn’t receive the funding it deserves and
requires, and in order to make this happen the Association seeks to educate those with the
power and influence to make these changes a reality (alz.org). There are various reasons
Alzheimer’s disease desperately needs more research funding, and the Association aims to help
expedite changes to policy by providing an annually updated collection of statistics, titled

Alzheimer’s Disease Facts and Figures, to illuminate just how pressing this issue really is
(alz.org).
The Association has several legislative proposals they are advocating, such as the
Alzheimer’s Accountability Act, the HOPE for Alzheimer’s Act, and the National Alzheimer’s
Project (alz.org). The Accountability Act “...represents a bipartisan effort to ensure that
Congress is equipped with the best possible information to set funding priorities and reach the
goal of the National Plan to Address Alzheimer's Disease — effectively preventing and
treating Alzheimer's by 2025” (alz.org). This will be a difficult goal to achieve, but the
Association is confident it can be done. The goal of the HOPE (Health Outcomes, Planning,
and Education) for Alzheimer’s Act is to increase early diagnosis rates, provide exceptional
information and services to diagnosed patients and their relatives, and implement a
requirement for a diagnosis to be added to the medical record of patients (alz.org). Finally, the
Association recently implemented the National Alzheimer’s Project Act, which was passed
unanimously by Congress and signed by President Obama due to recognition of the enormous
strain on healthcare and the federal budget caused by the disease (alz.org). Furthermore, the
Alzheimer’s Association website states “Now, the Secretary of Health and Human Services
must thoroughly and expeditiously implement this law by creating a plan to comprehensively
address the federal government's efforts on Alzheimer's research, care, institutional services,
and home- and community-based programs” (alz.org). This was a monumental step forward,
and has the potential to begin the process of lowering the exorbitant amounts of funds spent on
patient care and treatment.
David Hoffman, Bureau Director for the New York State Department of Health, writes
that “The initial foray into the federal policy arena, the National Alzheimer's Project Act, is a

good first step but remains limited in scope and resources” (Hoffman). Furthermore, Hoffman
believes that in order for this policy change to be as effective as possible, a degree of
cooperation, coordination, communication in every state is required (Hoffman). Most of the
United States has already begun to answer the call, as Hoffman says “seeing the need for
greater effort, thirty-three states have convened advisory groups and published their own plans
for coordinating state-level activity to address Alzheimer's disease across service systems”
(Hoffman). Hoffman is of the opinion that although hope should remain for developing a cure
or preventative treatment, we should keep in mind the full scale of the issue while working
towards a solution.
In conclusion, although several encouraging changes in policy have been made, we
must continue to treat Alzheimer’s as the economically, emotionally damaging, and malevolent
disease that it is. Further policy changes regarding research funding must be made to find a
solution in order to remove this heavy financial burden from our country, and the world in
general. This financial drain is only going to grow exponentially, as the heavily populated
baby-boomer generation continues to age (alz.org). Essentially, more changes to policy must
be made, and the ones that have already been made must be implemented in the most effective
way possible.