Dementia to Cost the United States $818 Billion in 2026, USC-Led Study Finds

LAPost / Los Angeles (June 24, 2026) — Alzheimer’s disease and related dementias are projected to cost the United States an estimated $818 billion in 2026, according to a new study led by researchers at the University of Southern California (USC). The report highlights not only the enormous medical and long-term care expenses associated with dementia, but also the substantial hidden costs borne by patients, families, and unpaid caregivers.

Published June 24 in Alzheimer’s & Dementia: The Journal of the Alzheimer’s Association, the study is part of the federally funded U.S. Cost of Dementia Project, which aims to provide the most comprehensive assessment to date of dementia’s economic impact on American society.

Researchers estimate that 5.7 million Americans will be living with dementia in 2026, including approximately 5.1 million people aged 65 and older. The study found that the largest component of dementia-related costs stems from the decline in quality of life experienced by those living with the disease. Reduced cognition, loss of independence, and diminished daily functioning account for an estimated $320 billion in costs. Family members and friends who provide care also experience significant emotional and physical strain, resulting in an additional $15 billion in quality-of-life losses.

The report underscores the critical role of unpaid caregivers. Approximately 5.2 million Americans provide care for a family member or friend living with dementia, contributing an estimated 6.8 billion hours of unpaid care annually. Researchers value that caregiving labor at $237 billion. Many caregivers are in their prime working years, making the burden especially significant for household finances and workforce participation.

Medical and long-term care expenses remain a major component of the overall burden. The study estimates that dementia-related medical and long-term care costs will total $222 billion in 2026. Medicare and Medicaid are expected to cover about 70 percent, or $154 billion, while patients and families will pay approximately $46 billion out of pocket, representing about 20 percent of total care costs.

In addition, people living with dementia and their caregivers are projected to lose roughly $23 billion in annual earnings due to reduced work hours, early retirement, or leaving the workforce altogether.

The 2026 report builds upon the project’s inaugural findings released last year and incorporates several methodological improvements. For the first time, researchers included forgone earnings among people living with dementia and developed new models to measure the health-related quality-of-life impacts experienced by caregivers. The project has also published a peer-reviewed methodology paper to enhance transparency and accessibility of its data and assumptions.

According to lead researcher Julie Zissimopoulos, principal investigator of the U.S. Cost of Dementia Project, co-director of the Aging and Cognition Program at the USC Schaeffer Center for Health Policy & Economics, and professor at the USC Price School of Public Policy, comprehensive and transparent cost estimates are increasingly important as the nation’s dementia population continues to grow.

“By providing annual, comprehensive and transparent estimates of dementia’s total costs, our research can help guide decisions about how to allocate resources as the dementia population is set to grow substantially,” Zissimopoulos said. “With our modeling approach, we can ask and answer questions such as: How will a new treatment that slows dementia improve quality of life or affect demand for nursing home care?”

The study arrives at a time of rapid advancement in dementia diagnosis and treatment. New therapies have demonstrated the ability to slow the progression of Alzheimer’s disease, FDA-approved blood tests can identify Alzheimer’s-related changes before symptoms emerge, and innovative care models are helping individuals remain in their homes longer while supporting family caregivers.

“Remarkable innovations can alter the trajectory of dementia in the United States if they are used effectively,” said Dana Goldman, founding director of the USC Schaeffer Institute. “The evidence we are building on dementia costs will provide the healthcare system with a clearer understanding of these and future innovations.”

The multidisciplinary research team includes experts from the USC Schaeffer Center, USC Price School of Public Policy, USC Mann School of Pharmacy and Pharmaceutical Sciences, USC Davis School of Gerontology, and USC Viterbi School of Engineering, as well as researchers from the Alzheimer’s Association and the University of Pennsylvania. The project also incorporates perspectives from public health leaders, healthcare providers, individuals living with mild cognitive impairment, and caregivers through panel discussions organized by the Alzheimer’s Association.

Researchers noted that as America’s population continues to age, the number of people living with dementia is expected to rise substantially in the coming decades. Understanding the full economic burden of the disease, including its often-overlooked effects on families and caregivers, will be essential for shaping future healthcare policies, treatment strategies, and long-term care systems.

The U.S. Cost of Dementia Project is funded through a cooperative agreement with the National Institute on Aging, part of the National Institutes of Health (NIH).