OBJECTIVES: The aim of our study is to calculate the annual health insurance treatment cost of Alzheimer dementia disease in Hungary. METHODS: The data derive from the financial database of the Hungarian National Health Insurance Fund Administration (NHIFA), the only health care financing agency in Hungary. We analyzed the health insurance treatment cost and the number of patients for the year 2010. The following cost categories were included into the study: out-patient care, in-patient care, CT-MRI, PET, home care, transportation, general practitioner, drugs and medical devices. RESULTS: The Hungarian National Health Insurance Fund Administration spent 4.426 billion Hungarian Forint (HUF) (21.266 million USD) for the treatment of Alzheimer patients. The annual average expenditure per patient was 72881 HUF (350 USD) while the average expenditure per one inhabitant was 442 HUF (2.1 USD). Major cost drivers were acute inpatient care (45.8 % of total health insurance costs), chronic inpatient care (28.1 %) and pharmaceuticals (10.4 %). The number of patients with Alzheimer disease was 60.6 per 100000 populations. We found the highest patient number in outpatient care budget (60735 patients), general practitioners (60234 patients) and pharmaceuticals (37724 patients). CONCLUSIONS: Alzheimer dementia disease represents a significant burden for the health insurance system. Hospital care (both acute and chronic) is the major cost driver for Alzheimer disease in Hungary.