October 2007

An Unhealthy America: The Economic Burden of Chronic Disease

Charting a New Course to Save Lives and Increase Productivity and Economic Growth

In October 2007, the Milken Institute issued a report on chronic disease in America. The authors argue that the rise of chronic diseases has contributed significantly to rising medical costs in the U.S. The purpose of the study was to quantify the economic costs of chronic disease, focusing on employers, the government, and the national economy. The diseases studied were cancer, diabetes, hypertension, stroke, heart diseases, pulmonary conditions, and mental disorders.

The study found that more than 109 million Americans report having at least one of the seven diseases. The total impact of these diseases on the economy is $1.3 trillion annually; lost productivity totaling $1.1 trillion, and $277 billion spent on treatment.

Under a more optimistic scenario, assuming modest improvements in preventing and treating disease, we find that in 2023 we could avoid 40 million cases of chronic disease. The full report includes a State Chronic Disease Index, as well as tables for each state, looking at disease rates, projections of avoidable costs, and intergenerational impacts.