Chronic Diseases Cost U.S. Economy More Than $1 Trillion Annually, Study Finds

The cost to the U.S. economy of treatment and lost productivity caused by chronic illnesses among U.S. residents is more than $1.3 trillion per year, and if current trends are not reversed, costs could reach $6 trillion by 2050, according to a report released Tuesday by the Milken Institute. The report found the cost of treating seven common chronic illnesses — cancer, diabetes, hypertension, stroke, heart disease, pulmonary conditions and mental illness, which together affect a total of 109 million U.S. residents — is at least $277 billion per year.

The cost of lost productivity amounts to about $1.1 trillion. Economic losses generated by caregivers are included in the productivity deficit.  The report also addresses the costs of "presenteeism," which occurs when an employee comes to work but performs at a lower-than-expected level because of a chronic condition. The cost of presenteeism accounts for about 79.1% of total estimated productivity loss stemming from chronic conditions, according to the report.

The report calls for a plan that would promote prevention and early intervention by providing incentives to health care providers. It also calls for reduced use of tobacco products and abuse of alcohol. Reversing current trends through prevention and early detection efforts would curb much of the treatment and productivity losses, according to the report, which does not provide a figure for the cost of such programs.

The report sets a target of reducing the nation’s obesity rate from its current level of 23% to 1998 levels of 19% over the next 10 years. Doing so would prevent nearly 15 million illnesses and cut medical costs by about $60 billion, in addition to increasing productivity by about $250 billion by 2023, according to the report. Obesity levels are projected to reach 29% by 2023 under current trends. The report also targets smoking, with a goal of reducing smoking rates from about 22% to 15% nationwide, which would produce an estimated savings of $30 billion in treatment and about $80 billion in productivity.  The report is available online.