Dementia Epidemic: A $10 Billion Australian Crisis

The Australian Institute of Health and Welfare (AIHW) has released its Dementia in Australia report, estimating that out of every 1,000 Australians, 15 are suffering from the neurodegenerative disease. Prescriptions for dementia drugs have increased by 46 percent over the past decade, with a total of 688,000 dementia medication prescriptions dispensed to around 72,400 Australians aged 30 and over in the fiscal year ending in 2023.

Dementia is caused by more than 100 different diseases, with Alzheimer’s disease being the most common. While the disease primarily affects older adults, various forms of dementia can also impact children and younger people depending on the cause. Currently, dementia is the second leading cause of death in Australia, behind heart disease, with reported deaths rising steadily from 8,500 in 2009 to 17,899 in 2022.

The COVID-19 pandemic has also had a significant impact on dementia cases and deaths. According to the AIHW report, dementia sufferers are more likely to experience fatal reactions to the virus. The rising numbers of dementia cases, deaths, and prescriptions add weight to an already strained Australian aged care system, prompting Prime Minister Anthony Albanese to unveil a $10 billion (US$6.7 billion) aged care overhaul in September 2022.

This reform aims to invest more in-home care support, allowing older people to remain at home for longer periods. The move could benefit aged care facilities by freeing up care for dementia sufferers who often have to move to monitored facilities. In the fiscal year ending in 2022, more than 242,000 people were living in permanent residential aged care facilities, with over half (54 percent or about 131,000) of these individuals having dementia.

The Australian Bureau of Statistics reported that 17.1 percent of Australians are aged over 65, and the number of Australians older than 85 is expected to triple over the next four decades. Aged care is one of the biggest pressures on the budget, and without action, spending is projected to more than double as a share of GDP in the next 40 years. The reforms, which have bipartisan support from the Liberal-National Coalition, include new standards to drive service quality, new protections for whistleblowers, and a new independent statutory complaints commissioner.

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