Economic costs and losses related to health inequities

The economic costs associated with health inequities, measured as the excess burden of ill health and premature deaths in EU-25 country populations with lower levels of education, occupation and/or income, are substantial. Health inequities contribute to the high levels of social security benefits and health care expenditure in all countries of the WHO European Region. They reduce economic productivity by lowering labour participation and labour productivity and because of the high value that is attached to health, they also have a major negative effect on welfare.

Mackenbach et al. (2007) studies in 25 EU countries revealed that:

• the annual inequity-related losses to health account for 15% of the costs of social security systems, and for 20% of the costs of health care systems in middle and high-income countries annually;
• annual inequity-related losses to health as a ‘capital good’ (i.e., labour-related productivity) in absolute terms are estimated at €141 billion (1.4% GDP);
• annual inequity related to health as a “consumption good” is huge: in the order of €1,000 billion or 9.5% GDP; and health inequity-related losses, if they persist, will continue to accumulate and absolute costs to humans, and to growth and development, will increase.