The Emerging Opportunities In 65+

By Monica E. Oss, Chief Executive Officer, OPEN MINDS

This past week brought news of potential entrants in the senior behavioral health market space. On the pharmaceutical front, a new drug, lecanemab, was shown to slow cognitive decline in consumers with early Alzheimer’s disease. In the study, lecanemab reduced accumulation of the amyloid plaque proteins that cause the onset and progression of the disease. And a few months ago, the medication Rexulti was shown to reduce agitation in consumers with Alzheimer’s disease.

Another emerging treatment option also shows promise. Just-released studies show initial positive effects of brain stimulation on cognition in older adults, with the treatment effects lasting a month or longer. But this initial data is far from conclusive.

And on the service side, investors Arch Venture Partners and General Catalyst announced a $32 million investment in Rippl, a new company planning to offer wraparound mental health care for seniors. The company is building a platform for 24/7 access to care by telephone, online, or in patients’ homes.

These developments are not surprising given the market metrics. Based on current estimates, more than 7 million people ages 65 and over have dementia (defined as conditions that cause progressive brain deterioration such as Alzheimer’s disease, Parkinson’s disease, Huntington’s disease, vascular dementia, and others). The projections are concerning. More than 9 million Americans could have dementia by 2030 and nearly 12 million by 2040. Of those cases of dementia, 60% to 80% are due to Alzheimer’s disease.

At the same time, there’s a rising prevalence of mental health illness and addictions in the 65 and over population. Between 2010 and 2019, major depression in older adults increased from 2.0% to 3.2%, a 60% increase.

And there is comorbidity among these two groups, with 40% of consumers with dementia also suffering from major depression. Also, consumers diagnosed with the early onset form of dementia are at higher risk for suicide.

The behavioral health market for older adults is growing based on a combination of demographics and the increasing prevalence of dementia in the senior population. As a result, over the next 15 years, Medicare’s enrollment is projected to increase almost 50%, rising from 54 million beneficiaries today to more than 80 million beneficiaries in 2030. This market synergy presents new opportunities for specialty and primary care organizations to meet these growing and changing needs.