Health inequities experienced by communities of color have an economic burden of $5.9 billion annually, according to a newly released study from the Blue Cross Blue Shield of Massachusetts Foundation.
The economic toll is comprised of $1.5 billion in avoidable healthcare spending, $1.4 billion in lost labor productivity, and $3 billion related to premature deaths, according to the study. The Boston-based BCBS Foundation partnered with Health Equity Compact, a group of executives of color across Massachusetts aiming to advance health equity.
The study, called “The Time is Now: The $5.9 billion Case for Massachusetts Health Equity Reform,” was published on Tuesday.
It warns the economic impact of health inequities is increasing and estimates by 2050 the economic impact on Black, Hispanic/Latino, and Asian populations in the state will grow to $11.2 billion.
“The staggering economic toll of health disparities documented in this report, on top of the tragic human toll, makes clear that now is the time to shift from awareness of the problem to action on solutions,” Audrey Shelto, president and CEO of the Blue Cross Blue Shield of Massachusetts Foundation, said in a Tuesday press release. “Our Commonwealth led the way in expanding health insurance coverage and improving access, and we have a shared responsibility to act similarly to achieve health equity and eliminate health disparities.”
Across all racial and ethnic groups in Massachusetts, the study estimates the discrepancy between current health levels and optimal health has a total economic impact of $23.5 billion annually.
