From: The economic burden of health disparities related to socioeconomic status in Israel
Component of burden | Cost (USD billion) | Remarks |
---|---|---|
Welfare approach (health as a consumption good) | ||
1. Lost welfare due to premature mortality (welfare approach) | 1.09–2.94 | |
Human-capital approach (health as an investment good) | ||
2. Lost product due to premature mortality | 0.14 | |
3. Lost product due to excess morbidity | 1.4 | |
Total product loss (2 + 3) | 1.54 | |
Costs to the health care system | ||
4. Excess inpatient care | 0.17 | 5% of all annual hospital discharges |
5. Reduced community care | −0.08 | |
Total excess medical care (4 + 5) | 0.08 | 1% of public healthcare expenditure |
Additional costs to the government | ||
6. Extra outlay for disability benefits | 0.42 | 13% of disability payments |
7. Savings on old-age benefits | −0.11 | |
8. Ministry of Health’s expenditure on mitigating health inequality | 0.14 | |
Total additional costs to the government (6 + 7 + 8) | 0.45 | |
Total costs | ||
Total costs, using the human-capital approach (2 + 3 + 4 + 5 + 6 + 7 + 8) | 2.07 | 0.7% of of Israel’s GDP |
Total costs, using the welfare approach (1 + 3 + 4 + 5 + 6 + 7 + 8) | 3.02–4.86 | 1–1.6% of Israel’s GDP |