The cost of dementia: 5 things employers should know

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It's no secret that the U.S. elderly population is only growing, and with that will be an increased prevalence of chronic diseases — and dementia is no exception.

The Milken Institute Center for the Future of Aging, an independent economic think tank, found that the prevalence of Alzheimer's Disease and related dementias (or ADRD) treatment has soared, with costs increasing by 31% since 2012, totaling to $60.3 billion last year. However, women and people of color may find themselves at a disproportionate risk for dementia and the financial burden that comes with it.

"Almost two-thirds of people with Alzheimer's are women," says Diane Ty, director at the Milken Institute Center for the Future of Aging. "And communities of color are disproportionately affected by Alzheimer's and related dementias, but they're just not being diagnosed."

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While dementia mostly impacts people who are 75 and up, and likely retired, Ty argues that employers should be aware of what this disease costs caregivers and how education and prevention can lower the number of elderly Americans who are impacted by deterioration in cognitive function.

Here are five things employers should know about the prevalence and cost of ADRD, according to the Milken Institute

Costs are only going up

The Milken Institute estimates that by 2060, dementia-related healthcare expenditures will double to $102 billion. Given the growing elderly population and poor healthcare access, this may be unavoidable.

"Age is the largest risk factor for dementia," says Ty. "We have a bulging growth of our population aging, so you're going to naturally see this increase in treatment and expenditures."

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There's no stopping aging. The U.S. Census Bureau predicts that one in four Americans will be over the age of 65 and the number of those over 85 will triple by 2060. In just over a decade, for the first time in U.S. history, people over 65 will outnumber children under 18.

Women are disproportionately impacted

Women account for 20% more dementia-related cases than men, with annual care costs being 44% higher, according to the Milken Institute. Ty notes that while the reasons behind this disparity are not certain, women on average live five years longer than men, reaching 81 years old. Since age is such a dominant factor in cognitive deterioration, it's possible women just have a better chance of experiencing it before they pass. 

However, a woman's reproductive health could also play a part. A study led at the Kaiser Permanente Northern California Division of Research found a connection between the risk of dementia and the time between first menstruation and menopause. Those who hit menopause earlier may be at a higher risk for dementia before they hit 65. 

Black and Hispanic Americans are underdiagnosed

The Milken Institute also underlines racial disparities in treatment — despite Black Americans being twice as likely to have dementia than white Americans and Hispanic Americans being 1.5 times as likely, they underreport cases at a higher rate than their white counterparts.

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Black Americans underreport dementia by six times less than their community's estimated number of cases, and Hispanics underreport by four times. Comparably, White Americans underreport by three times less than their estimated number of cases. 

"They're just not being diagnosed, and this partly comes down to overall healthcare equity," says Ty. "There may even be cultural stigmas that keep some from cognitive screenings." 

The burden of caregiving

According to the Alzheimer's Association, around two-thirds of caregivers for those suffering from dementia are women — over one-third are daughters. Notably, 70% of the total cost of caring for someone with dementia is taken on by families. Given that a majority of caregivers are also over 40 years old, this sets up a dangerous pattern.

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"By the time the caregiver needs care, they have almost become impoverished from giving up their earnings caring for their loved one," says Ty. "It is a vicious cycle for women."

Employers can make a difference

Ty advises employers to offer dependent care accounts that allow employees to put money aside for eldercare and give employers an opportunity to contribute to their savings. She also emphasizes the need for more education around the risk factors for dementia, such as high blood pressure, diabetes, smoking, high alcohol intake, hearing loss, social isolation and depression. 

If employers took the lead by working with their benefits partners to offer free brain screenings and better access to primary and mental health care, they could be part of reducing their workers' risk for dementia.

"Employers could go a long way in helping people overcome the fear of dementia," says Ty. "Ultimately, there are addressable or reversible causes of cognitive decline." 
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