The Economic Benefits of Reducing Racial Disparities in Health: The Case of Minnesota.

Marilyn Nanney,Kateryna Kent,Man Xu,Samuel Myers,Thomas Durfee,Michele Allen

doi:10.3390/ijerph16050742

Abstract

This paper estimates the benefits of eliminating racial disparities in mortality rates and work weeks lost due to illness. Using data from the American Community Survey (2005–2007) and Minnesota vital statistics (2011–2015), we explore economic methodologies for estimating the costs of health disparities. The data reveal large racial disparities in both mortality and labor market non-participation arising from preventable diseases and illnesses. Estimates show that if racial disparities in preventable deaths were eliminated, the annualized number of lives saved ranges from 475 to 812, which translates into $1.2 billion to $2.9 billion per year in economic savings (in 2017 medical care inflation-adjusted dollars). After eliminating the unexplained racial disparities in labor market participation, an additional 4,217 to 9185 Minnesota residents would have worked each year, which equals $247.43 million to $538.85 million in yearly net benefits to Minnesota.

Highlights

Across all types of diseases, illnesses, and accidents, Blacks are 1.16 times [1] more likely to die than Whites
Racial disparities arise in labor market outcomes
Estimates of the economic cost of racial disparities are obtained for two health outcomes: mortality rates and labor market effects of illnesses

Summary

Introduction

Across all types of diseases, illnesses, and accidents, Blacks are 1.16 times [1] more likely to die than Whites. Blacks are 1.22 and 1.72 times [2,3,4] more likely than Whites to die from heart disease and hypertension, both preventable diseases. According to LaVeist, Gaskin, and Richard [5], the annual cost of racial differences in premature death in the US ranges from $236.1 billion to $243.1 billion. LaVeist, Gaskin, and Richard [5] estimate these costs amount to $11.7 billion to $13.3 billion a year. Other attempts to estimate the economic costs associated with health disparities produce values that range from $193 billion (smoking) to $250 billion (fatal and non-fatal cost of occupation injuries) [6,7,8]

Methods

Results

Discussion

Conclusion