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Table 9 Breakdown of the economic burden of SES-related health inequality, 2014 terms

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