Study Highlights Financial Toll of Health Disparities

A groundbreaking study provides national and state-level estimates of the economic burden of health disparities by race, ethnicity and educational levels.

New research shows that the economic burden of health disparities in the United States remains unacceptably high. The study, funded by NIMHD, revealed that in 2018, racial and ethnic health disparities cost the U.S. economy $451 billion, a 41% increase from the previous estimate of $320 billion in 2014. 

Findings from the study by researchers from NIMHD, Tulane University School of Public Health and Tropical Medicine, Johns Hopkins Bloomberg School of Public Health, Uniformed Services University, TALV Corp and the National Urban League were published in JAMA. 

The study is the first to estimate the total economic burden of health disparities for five racial and ethnic minority groups nationally and for all 50 states and the District of Columbia using a health equity approach. The health equity approach set aspirational health goals that all populations can strive for, derived from the Healthy People 2030 goals. It establishes a single standard that can be applied to the nation and each state, and for all racial, ethnic and education groups. 

It is also the first study to estimate the economic burden of health disparities by educational levels as a marker of socioeconomic status. 

Key findings from the study include:

• Most of the economic burden for racial and ethnic disparities was borne by Black/African American population (69%) due to the level of premature mortality.
• Native Hawaiian/Pacific Islander ($23,225) and American Indian/Alaska Native ($12,351) populations had the highest economic burden per person.
• Across all educational levels, most of the burden was attributable to premature deaths (66%), followed by lost labor market productivity (18%) and excess medical care costs (16%).

“The exorbitant cost of health disparities is diminishing U.S. economic potential,” said NIMHD Director Dr. Eliseo Pérez-Stable. “We have a clear call to action to address social and structural factors that negatively impact not only population health, but also economic growth.”