Alzheimer's disease has been estimated to cost the nation $80 to $90 billion a year. This figure includes both direct financial outlays, such as for nursing care, as well as indirect costs, such as lost productivity on the part of patients and the family members who care for them.

Caring for a patient with Alzheimer's disease costs more than $47,000 a year whether the person lives at home or in a nursing home, according to a recent study in northern California. This study found that the families of Alzheimer's disease patients living at home spent about $12,000 annually, per family, for formal services, such as physician care and home health aides. But when the researchers added the estimated cost of unpaid, informal care provided by family members, the total annual cost was $47,049--comparable to the cost of nursing home care.

Sources:

Evans DA. Estimated Prevalence of Alzheimer's Disease in the United States, The Milbank Quarterly 68(2): 267-289, 1990.

Rice D, Fox PJ, Max W, et al. The Economic Burden of Alzheimer's Disease Care, Health Affairs, 12(2):164-176, 1993.