The Number of Americans Living with Alzheimer’s Is On the Rise. Here’s How to Plan for Care.

A dementia diagnosis can be devastating, whether it’s for you or for a loved one in your care.

Alzheimer’s disease is the most common form of dementia, a debilitating health issue that’s increasingly common among the elderly. Caring for a dementia patient becomes increasingly challenging and expensive given the inevitable loss of mental and physical function that develops over time.

Care doesn’t come cheap. The Alzheimer’s Foundation estimates that health care costs for Alzheimer’s and other dementias will reach $345 billion in 2023, and that amount could balloon to nearly $1 trillion by 2050.

According to the Alzheimer’s Association’s 2022 Facts and Figures report, more than $272 billion in annual dementia care costs are shouldered by family members. And the average household pays around $10,000 to "safety proof" their home for a loved one with dementia.

Here’s what you should know about planning ahead for the financial cost of dementia care.

What is Alzheimer’s disease and dementia?

Dementia is a description for a broad range of medical symptoms that progressively impact memory and cognitive function.

Experts estimate that more than 7 million U.S. seniors are living with dementia as of 2020, and almost 12 million adults aged 65 and over could be affected by 2040.

Alzheimer’s is the most common form of dementia. The CDC believes that the current patient population could nearly triple to 14 million by 2060, from 5.8 million in 2020.

Symptoms typically begin with mild memory loss and can progress to delusions, hallucinations and paranoia. Eventually, dementia can leave a person unable to communicate their needs or recognize their surroundings and requires consistent, experienced care.

Even in early days, otherwise capable people may experience potentially dangerous memory lapses, such as getting lost when they can’t remember who or where they are, forgetting how to drive while operating a vehicle, or wandering into the street before looking both ways.

While it can be scary, there are ways to improve your quality of life even with a positive diagnosis. Here are three ways to make the most of your resources and time with your loved ones.

1. Tell your doctor if you or a loved one begin experiencing memory problems

Aging patients may avoid discussing memory issues with their doctors, whether out of fear that they are exhibiting symptoms, or that an accurate diagnosis of dementia or Alzheimer’s disease could result in prohibitive medical costs and associated expenses for care.

But medical professionals urge the importance of speaking up if something’s amiss. While cases may be on the rise, Alzheimer’s and similar dementias are not a normal part of aging, since many seniors live to old age with their mental faculties fully intact.

The root cause behind memory loss may not be dementia at all, stemming instead from sleep apnea or other curable issues that can be resolved with lifestyle changes or other treatments. And in worst-case scenarios, early diagnosis and intervention can effectively slow the onset of dementia.

2. Plan ahead for future medical expenses and care

It’s always a good idea to plan ahead for your financial future, even (or perhaps especially) if you don’t yet have a reason to do so. It may be worth considering investing in long-term care insurance, especially if your family history suggests that you or a loved one may need to rely on it in future.

Providing care for a loved one can be physically and emotionally taxing, with a hefty financial cost associated as well.

Rates vary wildly from state to state, depending on the resources available. According to research from Genworth Financial, Inc., in 2022, American families paid a median rate of $1,145 per week for 40 hours of care from a non-medical home health aide. assisted living facility rates ranged widely from $2,844 to $9,466 per month, with a median cost of $4,774.

While the topic may feel heavy, make sure to communicate your end-of-life wishes to your loved ones as early as you can so they can make legal, medical and financial decisions on your behalf.

A living will can serve as a directive for medical professionals who need to know if they should resuscitate you if anything happens. And it’s a good idea to separately designate a power of attorney.

3. Seek support from professionals and your community

The median annual cost of a private room in a nursing home was $115,007 in 2022, according to the Alzheimer’s Foundation, with a semi-private room only $15,000 cheaper at $100,679 per year.

Help may be available if your financial circumstances cannot sustain these expenses. First, reach out to your insurance provider to learn what coverage and resources are available to you, even if you aren’t sure you qualify.

Nonprofit organizations, your religious community, and local, state or federal entities may offer additional subsidies or services that are free or accept payment on a sliding scale.

Consider life insurance policies that offer a long-term care rider, or optional add-on, which can pay for treatments or expenses that aren’t covered under health insurance or Medicare.