The Costs of Dementia

Money Magazine ran a series on the costs of dealing with dementia.  Separating dementia into three stages, early, middle, and late, the series breaks down the costs for each of the stages.

Coping With the Costs of Dementia: The Early Stage looks at both the personal costs as well as the financial costs of copying with the disease in the beginning.

The financial toll can be nearly as large as the personal loss. Over the last five years of life, the average out-of-pocket cost of care for dementia patients totaled $61,500—81% more than for people without dementia—according to a new study in the Annals of Internal Medicine. Nearly half of the dementia patients ended up on Medicaid, the government health care program for impoverished Americans, compared to about 20% of patients suffering from heart disease or cancer.

If you were asked what is the reason for the costs of dementia early on, would you say drugs or treatments? According to the article, if you did, you’d be wrong.  “Driving the cost aren’t drugs or treatments, but the years of care necessary to get a person safely through life’s everyday activities. Medicare, the primary health insurance for people 65 and older, doesn’t cover that long-term nonmedical care.” 

The article discusses the differences between “normal” aging and early signs of Alzheimer’s.  As far as costs in the early stage of the disease, “which lasts an average of two years, [one’s] out-of-pocket costs won’t be burdensome. But [one will] need to plan for more expensive care later on, and move quickly, since [one’s] husband, wife, or parent has a limited window to participate in financial decisions and sign any necessary legal documents before cognitive abilities fade.”

The article recommends a number of steps to take to prepare, including obtaining the needed documents, appointing agents, talking to a doctor, organizing finances and preparing for Medicaid.  Check out the graphic of expenses in the last 5 years of life.