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The Costs of Alzheimers Disease:

The Reason to Care The Imperative to Act


Matthew Baumgart
Senior Director, Public Policy Alzheimers Association

Alzheimers Today

Living with Alzheimers


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5.4 Million

6th
Cause of Death

Alzheimers Caregivers

15.2 million

Alzheimers Costs Breakdown

Out of Pocket Other $33.8b $26.2b Medicaid $35.5b Medicare $104.5b

Alzheimers Costs Breakdown

Out of Pocket Other $33.8b $26.2b Medicaid $35.5b Medicare $104.5b

$19,820

Costs to Medicare

Average Per Person Medicare Payments 2008 (inflated to 2011 dollars)

$7,621

Seniors without Alzheimer's and Other Dementias

Seniors with Alzheimer's and Other Dementias

Alzheimers Increases Costs of Other Diseases

81% 61% 53%


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Diabetes

Heart Disease

Cancer

Hospital Stays

780

Annual Hospital Stays Per 1,000 Seniors

234

Seniors without Alzheimer's and Other Dementias

Seniors with Alzheimer's and Other Dementias

Alzheimers Costs Breakdown

Out of Pocket Other $33.8b $26.2b Medicaid $35.5b Medicare $104.5b

Alzheimers Costs Breakdown

Out of Pocket Other $33.8b $26.2b Medicaid $35.5b Medicare $104.5b

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Costs to Medicaid

$10,120

Average Per Person Medicaid Payments 2008 (inflated to 2011 dollars)

$527
Seniors without Alzheimer's and Other Dementias Seniors with Alzheimer's and Other Dementias

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Alzheimers and Long-Term Care


Nursing home resident by age 80: Diagnosed Alzheimers or other dementia:

4%
Overall

75%
Alzheimers

64.5%

Alzheimers residents on Medicaid:

On both Medicare and Medicaid (duals):

51%

29%
AD/D

11%
No AD/D

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Getting Much Worse Very Fast


1200

13.5mn 12.7mn $1.078 Trillion 12

11.2mn
1000

9.5mn

$906

10

800

7.8mn

$717

6.5mn
600

5.1mn

5.3mn

5.6mn $408

$547
6

400

$805 $307 $241


4

$670 $529 $401 $297


2

200

$172

$202 $222

$122
0

$146 2015

$174

2010

2020

2025

2030

2035

2040

2045

2050

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$100 on research vs. $28,000 on care

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The Current Trajectory


1200

13.5mn 12.7mn 11.2mn $1.078 Trillion 12

1000

9.5mn

$906

10

800

7.8mn

$717

6.5mn
600

5.1mn

5.3mn

5.6mn $408

$547
6

400

$805 $307 $241 $202 $297 $122 $146 2015 $174 $222
0 4

$670 $529 $401


2

200

$172

2010

2020

2025

2030

2035

2040

2045

2050

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The One Percent Solution

Cost of Alzheimers in 2012:

$200 billion

Research needed to find treatments and a cure:

1 percent
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Treatment = Savings
Effect of Hypothetical Treatment that Delays Onset by Five Years
$627 $178

Medicare
$406 $344

Medicaid

$123 $99

$72 $225 $212 $46 $128 $88 $88 $95 $118 $34 $34 $37 $39 $64

2010

2020

2030

2040

2050

2010

2020

2030

2040

2050

Current Trajectory 17

With Hypothetical Treatment

QUESTIONS?

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