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Annual Economic Impact of Chronic Disease on Ohio Economy is $56.8 Billion
Date:3/20/2008

health, we can add billions of dollars in economic growth in the coming decades," said Ross DeVol, Director of Health Economics and Regional Economics at the Milken Institute and principal author of the report. The good news is that with moderate improvements in prevention and early intervention such as reducing the rate of obesity, the savings to the economy would be enormous."

The study is the first of its kind to estimate the avoidable costs if a serious effort were made to improve Americans' health. Assuming modest improvements in preventing and treating disease, Milken Institute researchers determined that by 2023 the nation could avoid 40 million cases of chronic disease and reduce the economic impact of chronic disease by 27 percent, or $1.1 trillion annually. They report that the most important factor is obesity, which if rates declined could lead to $60 billion less in treatment costs and $254 billion in increased productivity.

Looking even further ahead, the report measures the possible cost to future generations if escalating disease leads to lower investments in education and training. In a snowball effect, the report warns, this loss of human capital and skill building could reduce the nation's economic output by as much as $5.7 trillion in real GDP by the year 2050.

In addition to providing national numbers, the report estimates current and future costs for each of the 50 states. According to the study, by making reasonable improvements in preventing and managing chronic disease, Ohio can avoid 1.5 million cases of chronic conditions in 2023 and reduce future economic costs of disease in Ohio sharply, by 27% ($40 billion). $32 billion of this would come from gains in productivity, and almost $9 billion would come from reduced treatment spending.

To reduce the human and economic cost of disease, the Milken Institute calls for:

-- More incentives to promote prevention and early intervention, and;

-- A renew
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SOURCE The Partnership to Fight Chronic Disease; The MilkenInstitute
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