The $781 billion estimate is the 2025 total U.S. economic burden of Alzheimer's and related dementias from the inaugural U.S. Cost of Dementia Model report.
The model is an annual research estimate of full societal costs, including medical care, paid care, unpaid care, lost earnings, and reduced quality of life. It was developed by USC Schaeffer researchers with support from a multi-year National Institute on Aging cooperative agreement. For working caregivers, it matters because most of the cost falls outside hospitals and clinics.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Table of Contents
- Where the $781 billion figure came from
- What changed in the 2026 update
- Why the 2025 number was revised
- Why working caregivers carry most of the cost
- How to use these numbers at work
Where the $781 billion figure came from
USC Schaeffer Center researchers estimated $781 billion in total 2025 costs for Alzheimer's and related dementias, as described in the inaugural 2025 cost model report. The project is led by USC with the Alzheimer's Association and the University of Pennsylvania.
Federal support comes from National Institute on Aging award U01AG086827. That NIA backing makes this the national tracking model, not a one-time study.
What changed in the 2026 update
The June 2026 update estimates $818 billion for 2026 for 5.7 million Americans living with dementia, according to the USC Mann School report on the 2026 findings. The results appeared June 24 in Alzheimer's and Dementia: The Journal of the Alzheimer's Association.
The tracking document keeps the original $781 billion 2025 figure beside a revised $788 billion 2025 estimate and the $818 billion 2026 estimate. That side-by-side view shows refinement over time.
Why the 2025 number was revised
The 2025 total was later revised from $781 billion to $788 billion after updated nursing-home resident data, as shown in the U.S. Cost of Dementia Project costs-over-time file.
The update lowered Medicaid and out-of-pocket inputs. Year-to-year changes therefore reflect methods as well as rising need. Readers should compare revised figures, not only headlines.
Why working caregivers carry most of the cost
Only about 27 cents of each 2026 dollar flows through the health system. The rest reflects out-of-pocket spending, unpaid care, lost wages, and reduced quality of life. About 5.2 million unpaid family and friend caregivers provided 6.8 billion hours valued at about $237 billion, according to Earth.com reporting on the USC study.
Much of that work falls on adult children and spouses balancing jobs and care. The 2026 model newly includes forgone earnings alongside unpaid hours and paid-care spending. That change makes job effects visible in the national total.
How to use these numbers at work
Document missed work, reduced hours, schedule changes, and paid-care spending. Keep dates, hours, pay effects, and receipts in one folder. Bring that record to leave, benefits, and accommodation talks.
Ask about paid family leave, flexible hours, remote days, backup care, and employee assistance. Use the national figures to explain context, then focus on your own costs. Employers respond to specific dates and dollars.
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