Abstract

This study examined the socioeconomic costs of dementia based on the utilization of healthcare and long-term care services in South Korea. Using 2016 data from two national insurance databases and a survey study, persons with dementia were categorized into six groups based on healthcare and long-term care services used: long-term care insurance users with home- and community-based services (n = 93,346), nursing home services (n = 69,895), and combined services (n = 16,068); and long-term care insurance non-users cared for by family at home (n = 192,713), living alone (n = 19,526), and admitted to long-term-care hospitals (n = 65,976). Their direct and indirect costs were estimated. The total socioeconomic cost of dementia was an estimated US$10.9 billion for 457,524 participants in 2016 (US$23,877 per person). Among the six groups, the annual per-person socioeconomic cost of dementia was lowest for long-term care insurance users who received home- and community-based services (US$21,391). It was highest for long-term care insurance non-users admitted to long-term care hospitals (US$26,978). Effective strategies are necessary to promote long-term care insurance with home- and community-based services to enable persons with dementia to remain in their communities as long as possible while receiving cost-efficient, quality care.

Highlights

  • Older adults living with dementia accounted for 10% (705,473) of the total older adult population (65 years or older) in South Korea in 2018, and this proportion is anticipated to rise to 16% (3,030,000) in 2050 [1]

  • Per-person direct cost was highest in LTC Insurance (LTCI) non-users admitted to LTC hospitals (US$26,978), followed by LTCI users receiving nursing home services (US$19,822)

  • Per-person direct medical cost was highest in LTCI non-users admitted to LTC hospitals (US$26,978) among the six groups of persons with dementia

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Summary

Introduction

Older adults living with dementia accounted for 10% (705,473) of the total older adult population (65 years or older) in South Korea in 2018, and this proportion is anticipated to rise to 16% (3,030,000) in 2050 [1]. Persons with dementia become more dependent on others for activities of daily living (ADL) and experience diverse health problems that require prolonged medical attention Caregivers of these individuals (mostly family) experience tremendous difficulty and feel burdened emotionally and financially [3]. In South Korea, one of the East Asian and Pacific countries, the total annual socioeconomic cost of dementia was anticipated to increase from US$11 billion in 2015 to US$28.6 billion in 2030 [5]. These increasing costs indicate an increasing socioeconomic burden on persons with dementia, their families, and the government. The findings provide information regarding the most costefficient service type for dementia care and contribute to developing practical strategies to reduce financial burden while providing quality care

Data Sources
Subjects
Measures
Estimation of Socioeconomic Costs
Total Socioeconomic Costs
Direct Costs
Indirect Costs
Discussion
Conclusions
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