Dementia patients’ long-term care (LTC) makes up the bulk of cost in treating the disease, and not the actual medical treatment itself, stated a 2013 RAND Corporation report.
RAND research estimated dementia costs to reach as high as $511 billion by 2040 and found the bulk of the cost was LTC. The aggressive rise in cost, RAND researchers noted, was due to gaps in current policy that didn’t adequately support treatment measures financially and left too much burden on professionals and patients.
In response, RAND published A Policy Blueprint: Improving Dementia Long-Term Care that introduced 25 tailor-made LTC insurance policy options designed to fill gaps within dementia’s current treatment model and financially support ti more effectively by addressing the needs of all involved in a patient’s care.
From doctors to caregivers, legislators to policymakers, insurers to patients, RAND’s LTC policy blueprints were sculpted to accomodate the specific treatment needs of the dementia patient, as well as alleviate financial stressors found along the treatment chain.
In RAND’s efforts to find a viable and long-term solution, the proposed LTC insurance options were designed to offer optimum relief to financially under-supported areas within dementia’s treatment model; without disregarding the business integrity of insurance carriers, or neglect to adhere to insurance policy regulations.
Alzheimer’s disease and related dementia is an irreversible and progressive disease that slowly incapacitates a person. It gradually destroys brain function and a person’s ability to perform daily functions, such as bathing, dressing, or eating. It robs a person of their independence and they become dependent on another for an indeterminate amount of time.
The main reason LTC costs for this disease is so profound is that although their cognitive abilities wane, their physical health and vitality may be unaffected, thus living a long life although incapacitate and relying solely on others.
Genworth’s 2019 Cost of Care survey, reported dementia’s cost of care is expected to grow at a rate higher than that of inflation in all care services:
- At-home Healthcare
- Assisted Living
- Nursing Home Facilities
“From 2004 to 2019, the cost for facility and in-home care services has risen on average from 1.71 percent – 3.64 percent per year. That’s an increase of $892 annually for home care and up to $2,468 annually for a private room in a nursing home,” the Genworth survey stated. “At this rate, some care costs are outpacing U.S. inflation rate of 2.1 percent by almost double.”
“As an ally for people as they grow older, we offer our annual Cost of Care Survey and award- winning interactive website to help individuals and their families educate themselves about what to expect in terms of care costs so that they can begin planning well before they need it,” said Genworth’s Cost of Care Survey Manager Gordon Saunders.
For the past 16 years, Genworth has been conducting the Cost of Care Surveys and its 2019 survey noted dementia as a force to be reckoned with in its ability to create exponentially high costs.
The Alzheimer’s Association shows, “In 2017, the lifetime cost of care for a person living with dementia was $341,840,” states the organization’s 2018 report. “With 70 percent of this cost borne by families directly through out-of-pocket costs and the value of unpaid care.”
The prevalence of dementia increases strongly with age and the analysis suggests that the costs of dementia could more than double by 2040 if the age-specific prevalence rate of the disease remains constant as the nation’s population continues to grow older.
In 2011, President Barack Obama signed the National Alzheimer’s Project Act (NAPA), which required increased research to find new treatments methods and provide improved care for those afflicted. It also required that the financial costs of dementia be tracked.
In response to NAPA, the U.S. Department of Health and Human Services (HHS) began coordinating plans to combat Alzheimer’s disease and related dementia. The HHS initiative has an important goal – to “prevent and effectively treat Alzheimer’s Disease and related dementia by 2025.”
The HHS publishes annual reports to highlight their plans and progress in fighting Alzheimer’s disease and related dementia. In the National Plans to Address Alzheimer’s Disease: 2019 Update, HHS outlines its goals for 2020 to include new drug trials, research projects, equipment development, brain bio-marker advancements, and clinical trial testing of new treatments.
The HHS 2019 Update details planned nationwide summit meetings to share information regarding HHS initiative advancement in the fight against Alzheimer’s and related dementias.
The next summit meeting will be the “2020 National Research Summit on Dementia Care, Caregiving, and Services,” to be held from March 24 to March 25, 2020. It may be watched live via webcast on the Lewy Body Dementia Association (LBDA) website.
