The personal and national costs of CVD: Impacts on income, taxes, government support payments and GDP due to lost labour force participation

Abstract

BackgroundCVD has the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow-up on impacts to both the individual and the state. This study aimed to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefit payments and lost GDP as a result of early retirement due to CVD in Australians aged 45–64 in 2009. MethodsCross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model. ResultsIndividuals aged 45 to 64years who have retired early due to CVD have a median value of total weekly income of only $268 whereas those who are employed full time are likely to have almost five times this. The national aggregate impact of CVD through the loss of labour force participation amongst 45 to 64year olds, equated to around AU$1.1billion in lost income, $AU225million in lost income taxation revenue, AU$85million in additional government benefit payments, and AU$748million in lost GDP, in 2009 alone. ConclusionsThe costs of CVD to both individuals and the state are considerable. Whilst individuals bear the economic costs of lost income in addition to the burden of the condition itself, the state impacts are loss of productivity from reduced workforce participation, lost income taxation revenue, and increasing government support payments — in addition to direct health care costs.