New Study: Dementia Will Cost the U.S. $818 Billion in 2026
- PFCD
- Jul 8
- 2 min read
Alzheimer’s disease is one of the most costly and consequential challenges facing the U.S. healthcare system. A new study led by the University of Southern California estimates that Alzheimer’s disease and related dementias will cost the U.S. $818 billion in 2026, offering one of the most comprehensive assessments to date of the disease’s true impact.
These costs extend far beyond what is typically captured in healthcare spending, reflecting the profound and often hidden burden on patients, families, and caregivers.
The True Cost Goes Beyond Medical Care
While medical and long-term care costs total $222 billion, they represent only part of the story. The largest share – $320 billion – comes from reduced quality of life among people living with dementia, reflecting losses in independence, cognition, and daily functioning.
Care partners also experience significant impacts. More than 5.2 million Americans provide 6.8 billion hours of unpaid care each year, valued at $237 billion. These caregivers – often family members balancing careers and other responsibilities – are essential to the functioning of the current system.
At the same time, caregiving comes with economic consequences. People living with dementia and their care partners lose an estimated $23 billion annually in wages,
with an additional $15 billion in quality-of-life losses tied to the emotional strain and physical demands placed on caregivers.
Even with Medicare and Medicaid covering roughly 70% of medical costs, families still pay $46 billion out of pocket. These expenses, combined with lost income and unpaid caregiving responsibilities, place a substantial burden on households already navigating the challenges of the disease.
A System at a Crossroads
This new analysis arrives at a pivotal moment. Advances in Alzheimer’s science – including disease-modifying therapies and new diagnostic tools – are beginning to change what is possible for families.
However, without policies that address affordability, access, and caregiver support, the benefits of these innovations may remain out of reach for many Americans.
The findings make clear that Alzheimer’s is not just a healthcare issue – it is an economic and societal one. Addressing this deadly disease will require policies that recognize the full scope of its impact, including the hidden costs borne by families and communities.
As the number of Americans living with dementia continues to grow, so too will the consequences of inaction. Ensuring that policy keeps pace with scientific progress is essential to improving outcomes for millions of Americans today and in the future.