Skip to main content

Advertisement

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