Giving Compass' Take:

• RAND launched a research team to understand the economic costs of dementia to better equip policymakers toward a solution for the growing number of citizens in the U.S. with this disease. 

• How can philanthropists contribute to research and funding for treatment? 

• Read about how other cultures treat patients with dementia. 

Dementia, which includes Alzheimer's and other disorders, is a chronic disease of aging that reduces cognitive function, leaving people unable to tend to even their most basic, everyday needs. In addition to the emotional toll it can inflict on families, dementia is associated with tremendous long-term care costs.

In 2011, citing a growing body of evidence demonstrating dementia as a serious public concern, President Barack Obama signed the National Alzheimer's Project Act into law. The law seeks to improve the federal government's ability to track the monetary costs of dementia incurred by public programs (i.e., Medicare and Medicaid), as well as individuals.

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.

Some Key Findings of the Study:

  • 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.
  • By 2040, the total cost of dementia will increase to as much as $511 billion in inflation-adjusted dollars.

Read the full article about planning for the future dementia costs by Michael Hurd at RAND Corporation.