The Economic Burden of Mild Cognitive Impairment and Dementia Due to Alzheimer’s Disease in South Korea and Taiwan

OBJECTIVES: Taiwan and South Korea, two rapidly aging nations in East Asia, face a growing prevalence of Alzheimer's Disease (AD). Existing cost of illness (COI) studies predominantly focus on moderate-to-severe AD dementia, neglecting the economic impact of early AD defined as mild cognitive impairment (MCI) and mild dementia. This study addresses this gap by estimating the annual economic burden of AD across severity levels in Taiwan and South Korea.

METHODS: A COI model was constructed utilizing comprehensive local data to estimate the annual AD burden from a healthcare system perspective (direct medical, non-medical and long-term care costs) and a societal perspective (productivity losses, work and activity impairment and turnover costs).

AD estimates were obtained from a national survey from Taiwan, and the national health insurance database from Korea. Costs were estimated via a combination of microcosting (Taiwan) and extrapolation from available data for moderate-to-severe cases (South Korea). All inputs were clinician validated.

RESULTS: In Taiwan, total annual healthcare system costs in 2024 (and % increase from a societal perspective) were estimated at USD 2.4 billion (+48%) for MCI due to AD, USD 0.73 billion (+52%) for mild AD dementia, and USD 1.6 billion (+31%) for moderate-to-severe AD dementia. MCI due to AD accounted for 53% of total burden in Taiwan. In South Korea, the total annual healthcare system costs in 2024 were estimated at USD 12.6 billion (+48%), USD 4.1 billion (+126%), and USD 3.8 billion (+177%). MCI due to AD accounted for 48% of total costs in South Korea.

CONCLUSIONS: This study highlights the significant and previously underestimated cost of AD in Taiwan and South Korea. We hope these findings can usefully input to policy and resource decision-making in AD management.