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Title: The Minnesota Economic Model of Dementia: Demonstrating Healthcare Cost Savings with the New York University Caregiver Support Intervention

Citation Type: Miscellaneous

Publication Year: 2014

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Abstract: No therapies are known to substantially alter the course of dementia and associated treatment costs. However, enhanced support services for caregivers for people with dementia have been shown to improve caregivers' capabilities and well-being and delay patients' institutionalization. Using a model that simulated disease progression, place of residence, and costs of care, we estimated the economic impact to Minnesota from offering the New York University Caregiver Intervention (NYUCI), an enhanced support services program for adult caregivers of community-dwelling people with dementia. We estimated the impact of the NYUCI on: 1. the potential healthcare savings to all eligible people in the state, assuming all current and future caregivers participate in the NYUCI from 2010 to 2025; 2. the net healthcare cost savings, inclusive of program costs, to eligible caregivers, assuming three less-than-complete levels of participation in the NYUCI from 2010 to 2025 (5% of all caregivers, 10% and 30%); 3. the potential indirect cost savings to all eligible people in the state, assuming all current and future caregivers participate in the NYUCI from 2010 to 2025. Results indicate that approximately 5 percent more people with dementia would remain in the community from year 3 (2013) on, and that 19.3 percent fewer people with dementia would die in institutions over fifteen years. During those years, Minnesota could potentially save as much as $1.24 billion ($996 million in discounted dollars) in direct healthcare costs. The estimated savings in net healthcare costs during those years, including all program costs except for program marketing, were $61.8 million, $103.7 million, and $250.6 million, assuming 5, 10, and 30% of caregivers participate in the NYUCI, respectively. Estimated potential indirect cost savings are also substantial, well exceeding the estimated direct healthcare cost savings. These findings suggest that broader access to enhanced caregiver supports is a promising way to moderate the growing economic burden of dementia. Substantial long-term savings are possible even without a breakthrough in the pharmacologic treatment of the disease. These direct healthcare cost savings would benefit taxpayers (through reduced expenditures for the Medicaid program) and people with dementia and their families, who largely pay the medical and facility fees for those in residential care settings. Other payers who would benefit include the Medicare program, commercial health plans and long term care insurers, to the extent that they fund these formal care services. The substantial indirect cost savings with enhanced support services would benefit caregivers and likely their employers through improved quality of life and increased productivity. Enhanced support services programs for dementia caregivers, such as the NYUCI, are cost-effective ways to manage dementia while researchers continue to seek effective treatments for the disease.

Url: https://docs.house.gov/meetings/FA/FA16/20171129/106679/HHRG-115-FA16-20171129-SD002.pdf

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Authors: Foldes, Steven, S; Long, Kirsten, H

Publisher: Foldes Consulting LLC

Data Collections: IPUMS NHGIS

Topics: Education, Health, Other

Countries: United States