OBJECTIVES: The objectives of this study were to estimate the number of people with Alzheimer’s related morbidity and mortality and to estimate the indirect costs for Alzheimer’s disease in the United States. Alzheimer’s disease is a chronic progressive disease with a prevalence rate of 10% of the United States population at age 70 and a prevalence rate of 40% by age 90.  METHODS: The Human Capital method was used to estimate indirect costs for Alzheimer’s disease. The Medical Expenditures Panel Survey, a nationally representative database of U.S., non-institutionalized civilians was used to estimate the morbidity (missed work and bed days) portion of indirect costs. The value of a bed day was estimated at 40% of the daily wage rate the person would have earned if they were in the workforce. The 2004 National Vital Statistics Survey Mortality Data was used to estimate the mortality portion of indirect costs for Alzheimer’s disease. RESULTS: A total of 26,745,385 bed days were reported by patients with Alzheimer’s in 2004. Of the 65,965 deaths that were reported due to Alzheimer’s, 8,320 occurred prior to life expectancy.  In U.S. dollars the overall total for indirect costs for Alzheimer’s patients in 2004 was over $1.3 billion. The majority of indirect costs for people with Alzheimer’s were due to morbidity. CONCLUSIONS: By the year 2030, population estimates predict the most rapidly growing population segment will be those 85 and older. Given the increasing prevalence of Alzheimer’s disease with advancing age, the number of persons developing Alzheimer’s disease will increase dramatically over the next several decades as will the indirect costs. This study most likely underestimates the morbidity costs of Alzheimer’s disease because patients in nursing homes and other institutions are not included in the Medical Expenditures Panel Survey.