This is the October 8, 2007, issue of Elder Law FAX, a free newsletter published by the Elder Law Practice of Timothy L.
Takacs
Economic Impact of Chronic Disease Costs U. S. Economy $1
Trillion
According to a report released earlier this month by the
Milken Institute, the annual impact of seven major chronic diseases on the United States
economy is calculated to be more than $1 trillion. By the middle of the 21st
century, this number is likely to grow to $6 trillion.
The seven chronic diseases - cancer, diabetes, hypertension,
stroke, heart disease, pulmonary conditions and mental illness - have a total
impact on the economy of $1.3 trillion annually. Of this amount, $1.1 trillion
represents the cost of lost productivity.
The Milken Institute is a non-profit, independent economic
think tank based in Santa Monica,
California. The report, "An
Unhealthy America: The Economic Burden of Chronic Disease," brings to
light for the first time what is often overlooked in the discussion of the
impact of chronic disease - the economic loss associated with preventable
illness and the cost to the nation's Gross Domestic Product (GDP) and American businesses
in lost growth.
In addition to providing national numbers, the report ranks
all 50 states by the reported number of these diseases per capita. According to
the Milken Institute State Chronic Disease Index, West
Virginia, Tennessee, Arkansas, Kentucky and Mississippi have the
highest rates of chronic disease . Those with the lowest rates are in the West:
Utah, Alaska,
Colorado, New Mexico
and Arizona.
Although the report contains bad news about the cost and
burden of chronic disease on U.
S. economic productivity, the authors of the
study stress that rising costs are not inevitable.
"By investing in good health, we can add billions of
dollars in economic growth in the coming decades," said Ross DeVol,
Director of Health Economics and Regional Economics at the Milken Institute and
principal author of the report. "The good news is that with moderate
improvements in prevention and early intervention such as reducing the rate of
obesity, the savings to the economy would be enormous."
The major changes contemplated in the report are weight
control combined with improved nutrition, exercise, further reductions in smoking,
more aggressive early disease detection, slightly faster adoption of improved
therapies, and less-invasive treatments.
Across the seven diseases, the optimistic scenario would cut
treatment (direct) costs in 2023 by $217 billion. The cumulative avoidable
treatment costs from now through 2023 would total $1.6 trillion. Furthermore,
cost reductions would continue into the future, saving hundreds of billions
annually in the years beyond 2023.
The authors suggest that the nature of services provided--the
failure to invest in prevention and early intervention--deserves equal place in
the current health care debate over extending coverage to the uninsured and
designing fair financing mechanisms. An increased emphasis on prevention would
both improve the health of Americans and offset some of the costs of an aging
population by increasing economic productivity.
More information on the report and chronic diseases can be
found on the Web site of The Partnership to Fight Chronic Disease, at
http://www.fightchronicdisease.org.