What Health Inequities Are Really Costing Your Company: Wayne Rawlins, MD

Health inequities cost the US an estimated $360 billion annually, according to Wayne Rawlins, MD, council chair for the Medical Director Advisory Council at the National Alliance of Healthcare Purchaser Coalitions. Rawlins spoke about the financial impact of health disparities on employers and what purchasers can do to address them in an interview with The American Journal of Managed Care^® (AJMC^®).

Citing Deloitte actuarial research from 2022, Rawlins said the $360 billion figure reflects the estimated increase of costs tied to differences in life expectancy, mortality, health service utilization, and chronic disease prevalence across populations, which is rising each year. On a per capita basis, that amounts to approximately $1000 per American per year, rising to $3000 per American by 2040, based on the projections.

Rawlins noted that health disparities are not limited to Medicaid or uninsured populations. His research found that inequities also exist within commercially insured populations, meaning employer-sponsored plans are directly affected. For employers, he said, this translates to higher medical costs, rising premiums, lower productivity, and worse workforce health outcomes.

He also referenced a comparison between US population growth and labor force growth, which showed the workforce has grown at 3 times the rate of the general population. Rawlins used this data to argue against a fixed-pie view of health resources, saying that broad improvements in health expand the overall pool of healthy, productive workers.

On what employers can do, Rawlins pointed to several strategies: ensuring broad workforce coverage, reviewing the impact of high-deductible health plans on lower-wage employees, working with health plan partners to identify disparities in claims data, and investing in preventive care to reduce costly acute care down the line.

Listen above or on one of these podcast services:

iTunes
TuneIn
Stitcher
Spotify