Economic Cost of Dementia in Australia 2016-2056
Alzheimer’s Australia commissioned NATSEM at the Institute for Governance and Policy Analysis at the University of Canberra to estimate the cost of dementia in Australia. The economic impact of dementia is a major concern nationally and internationally as the number of individuals with dementia continues to rise. Access Economics (2003) estimated the total cost of dementia to be $6.6 billion in 2002. This report now shows that the cost of dementia in Australia in 2016 is $14.25 billion, which equates to an average cost of $35,550 per person with dementia. Not only does this report update the Access Economics 2002 estimate to 2016, it also projects likely future costs of dementia over the next 40 years. In doing so, it provides an overview of dementia in Australia, including increases in the prevalence and incidence of dementia over the next 40 years, describes some of the social and economic characteristics of people with dementia, and identifies the impact of dementia on mortality and burden of disease. The need for care and provision of care services is also reported on, including estimating the future need for both informal and formal carers in both the community and residential aged care sectors. The report models direct and indirect costs of dementia in 2016 out to 2056. The impact on costs of a ‘hypothetical’ intervention program that reduces the annual incidence of dementia by 5% is modelled. A second scenario simulates the impact of ‘hypothetical’ technological change in hospital care and its impact on costs.