Medicare Costs of Advanced Dementia

Because the number of people with dementia will likely more than double in the next 40 years, their healthcare cost is an increasingly important public policy issue. In this prospective cohort study of 323 nursing home residents with advanced dementia (e.g., unable to recognize family members), the authors quantified Medicare costs every 90 days for 18 months.

Using cost estimates, not actual claims, the authors found that Medicare expenditures averaged $2300 per 90 days but were skewed, with 6% of the 90-day assessment periods associated with expenditures greater than $12,000. The largest expenditures occurred in the 90 days before death and were primarily for hospice, inpatient care, and skilled nursing facilities. Modifiable factors assoc…