Health care inequities cost $320 billion annually, new report says

New research published by Deloitte suggests that health inequities don’t just make it harder for people to access health care treatment – they also create significant financial costs. In a new analysis, actuaries estimate that the current burden of health inequities currently sits at $320 billion in annual spending, and say that number could rise to as much as $1 trillion by 2040.

The research examines the burden of inequities for various groups, including people of different races, genders, and socioeconomic statuses. By exploring the differences in disease figures amongst these demographics, actuaries were able to estimate what percent of total disease spending was due to inequities.

For example, taking into account the differences in diabetes rates and treatment for Black individuals, the analysis attributes around 4.8% of diabetes spending to health care inequities. That’s $15 billion annually. 

The analysis also notes an additional 42 billion dollars which is lost in productivity each year due to health disparities, exempting the impact of premature deaths.

The findings highlight the importance of intervening now to reduce health care disparities. “As we move toward the future of health that we envision, stakeholders face a choice between embracing the opportunity to design equitable health for all or letting history dictate the future,” the report says. “We should make the choice now while it’s still ours to make.”

Study authors call on stakeholders from a variety of different organizations, including state and federal agencies and industry incumbents, to address the problem of inequities.

Research authors also identified five key mechanisms as factors that need to be changed to achieve equitable health. These five mechanisms are:

1. Intentionality, such as prioritizing creating systems that can serve all patients
2. Cross-sector partnerships, since collective work is needed to make substantive change regarding health inequities
3. Progress measurements, so organizations can identify and monitor the changing health equity situation
4. Identifying barriers to equity, such as social determinants of health, and finding approaches that address these barriers head-on
5. Creating trust, including by promoting diversity and fostering inclusion

Overall, the study notes that collaboration is key to addressing the problems of health inequities. “Payers and providers have a significant role to play. But we can’t do this alone,” says the chief health equity officer of Anthem, Darrell Gray II, according to the report. “There is a dire need for cross-industry collaboration and community engagement, optimization of the public health infrastructure, and investment in data and technology interoperability and standards.”