In this first part of a two-part article, we review the prevalence of, cost
s associated with, and treatments for Alzheimer's disease and related demen
tias, a leading cause of disability in the elderly. New, innovative, and co
stly drugs to combat dementia are being introduced, causing pharmacy costs
to rise. These new drugs, however, may reduce overall medical costs and imp
rove the quality of life of patients with dementia and their caregivers. Is
sues of cost, excessive service utilization, and quality of life will have
significant impact on managed care organizations in the near future as the
rapidly aging population experiences significant disability and illness rel
ated to dementia. In the second part of this article, we describe the frame
work for a disease management program for patients with dementia, similar t
o programs in existence for diabetes and other chronic diseases, that could
enable managed care organizations to effectively care for these patients.