Alzheimer's disease robs people of their memories and their ability to think clearly, and the latest annual report from the Alzheimer's Association has placed a price tag on how the disease can rob families financially.

According to the report, in 2016 an estimated total of $236 billion will go toward treating Alzheimer's and other forms of dementia, when including the payments from the government, private insurance and out-of-pocket costs.​ ​"Families get blind-sided by what the costs actually are, and the costs of long-term care are significant," says Beth Kallmyer, vice president for constituent services at the Alzheimer's Association.



The disease affects 11 percent of people 65 and older, and is the sixth-leading cause of death in the U.S. No treatment slows Alzheimer's degeneration of brain cells, and no cure has been found. Though not much can be done on the medical side, the Alzheimer's Association stresses that preparing financially will prevent families from making long-term care decisions in an emergency situation, without having the time to review options.

In evaluating the costs of Alzheimer's, the report does not take into account the wages that are forgone as a result of caregiving, though it does indicate people change their work habits to pay for care or make themselves more available to help. Here are some of the major findings:

The Government Helps



Medicare is the government's health program for people 65 and older. Its payments toward people with Alzheimer's disease and other forms of dementia were $49,126 per person in 2015, compared with $15,550 spent on people who do not have the disease. Even so, Medicare does not cover long-term care that patients receive in nursing homes. Those services are covered by Medicaid, but only if families are low-income or have depleted all of their assets.



"Other" payment sources include private insurance, HMOs and uncompensated care. Courtesy Alzheimer's Association

Adding to financial burdens is the fact that many people do not understand the government's contribution to health care expenses. According to a survey the Alzheimer's Association conducted on 3,524 respondents, 28 percent incorrectly believed Medicare pays for nursing home care, and 37 percent did not know whether it did.

The Cost for Families

Despite help from government funds or private insurance, people pay an average of $10,495 in out-of-pocket costs for Alzheimer's care. The Alzheimer's Association survey showed that 30 percent of respondents believed they had insurance for long-term care, but national statistics show that only 3 percent of U.S. adults do.



Annual individual costs for people who helped care for loved ones with Alzheimer's varied widely according to survey respondents. Here's the breakdown:

Courtesy Alzheimer's Association

Paying for Care

According to the report, the costs of caring for a relative or friend with Alzheimer's or other forms of dementia can jeopardize the ability to buy food, and can threaten health and financial security. "The report looks at what this means for your day-to-day life and the decisions you have to make," says Dr. Keith Fargo, director of scientific programs and outreach at the Alzheimer's Association. "Most people don't have this money lying around."



Percentage of care contributors who took the indicated steps to help pay for the needs of a loved one with Alzheimer's or another dementia

Courtesy Alzheimer's Association

The most commonly reported expenses for those who care for loved ones with Alzheimer's or other forms of dementia were food and other groceries, at 63 percent and 56 percent, respectively. Other expenses went toward travel, medical supplies and medication. Several survey respondents changed their eating habits in order to afford care.

Percentages of survey respondents who said, "Yes," "Sometimes" or "Often" to questions about food security. Courtesy Alzheimer's Association

Foregone Wages



On top of all the costs, people who care for people with Alzheimer's and other forms of dementia have to change their work habits. Because of this, some are spending more but making less, while others are taking on even more work.



Courtesy Alzheimer's Association