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The Costs ofAlzheimers Disease:

The Reason to CareThe Imperative to Act

Matthew Baumgart

Senior Director, Public Policy Alzheimers Association

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Alzheimers Today

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Alzheimers Costs Breakdown

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

Medicare$104.5b

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

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Alzheimers Costs Breakdown

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

Medicare$104.5b

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$7,621

$19,820

Seniors without Alzheimer'sand Other Dementias

Seniors with Alzheimer'sand Other Dementias

Costs to Medicare

Average Per Person Medicare Payments2008 (inflated to 2011 dollars)

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Alzheimers Increases Costs of Other Diseases

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234

780

Seniors without Alzheimer'sand Other Dementias

Seniors with Alzheimer'sand Other Dementias

Hospital Stays

Annual Hospital Stays Per 1,000 Seniors

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Alzheimers Costs Breakdown

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

Medicare$104.5b

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

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Alzheimers Costs Breakdown

OtherOut of Pocket$26.2b$33.8b

Medicare$104.5b

OtherOut of Pocket$26.2b$33.8b

Medicaid$35.5b

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$527

$10,120

Seniors without Alzheimer'sand Other Dementias

Seniors with Alzheimer'sand Other Dementias

Costs to Medicaid

Average Per Person Medicaid Payments2008 (inflated to 2011 dollars)

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Alzheimers and Long -Term Care

On both Medicare andMedicaid (duals):

Diagnosed Alzheimers

or other dementia:

Alzheimers residents on Medicaid:

Nursing home resident

by age 80:

29%

64.5%

51%

75%4%

Overall Alzheimers

AD/D

11%

No AD/D

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5.1mn 5.3mn5.6mn

6.5mn

7.8mn

9.5mn

11.2mn

12.7mn

13.5mn

0

2

4

6

8

10

12

2010 2015 2020 2025 2030 2035 2040 2045 2050

$122 $146$174

$222$297

$401

$529

$670

$805

$172 $202

$241

$307

$408

$547

$717

$906

$1.078 Trillion

5.1mn 5.3mn5.6mn

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9.5mn

11.2mn

12.7mn

13.5mn

0

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2010 2015 2020 2025 2030 2035 2040 2045 2050

Getting Much Worse Very Fast

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

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$122 $146$174

$222$297

$401

$529

$670

$805

$172 $202

$241

$307

$408

$547

$717

$906

$1.078 Trillion

5.1mn 5.3mn5.6mn

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7.8mn

9.5mn

11.2mn

12.7mn

13.5mn

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2010 2015 2020 2025 2030 2035 2040 2045 20500

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5.1mn 5.3mn5.6mn

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2010 2015 2020 2025 2030 2035 2040 2045 2050

The Current Trajectory

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The One Percent Solution

Cost of Alzheimers in 2012:

$200 billion

Research needed to findtreatments and a cure:

1 percent

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Treatment = Savings

$88

$128

$225

$406

$627

$88$95

$118

$212

$344

2010 2020 2030 2040 2050

$34$46

$72

$123

$178

$34 $37$39

$64

$99

2010 2020 2030 2040 2050

Effect of Hypothetical Treatment thatDelays Onset by Five Years

Current Trajectory With Hypothetical Treatment

Medicare Medicaid

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QUESTIONS?