How Does Morbidity Impact Economics?
Morbidity is the ratio of
Hi, I am Bobby Christian from the Nashville, TN area. Today, with About.com, we are discussing how morbidity impacts finances and economics. Morbidity is the ratio of sick people to healthy people in a community, like the U.S. Simply put, it is the risk of becoming ill. The incidence of illness impacts everything from health care costs, health care quality, personal budgets, payroll taxes to employer productivity and profitability. It affects us all. According to the Council for Disability Awareness, Disability Facts You Should Know, December 2011, 95% of disabilities are caused by illness. A more direct measure of the impact of morbidity on finances and economics, is a report from Harvard University in June the 2009 issue of The American Journal of Medicine that reveals 62% of all personal bankruptcies filed in the U.S. in 2007 were due to the inability to pay for medical expenses.From an employer’s standpoint, morbidity is a major concern. According to the National Safety Council’s Injury Facts 2010 Edition, one work-related injury costs an employer on average $48,000. Government medical programs, Medicaid and Medicare, for low income individuals, disabled individuals and retirees are a direct cost to every working American, paid through a payroll tax.Combined employee and employer OASDI tax is 7.65%. The economic impact is obvious – failure to address one’s chance of becoming ill can result in lost income, inability to pay bills, bankruptcy – for employers, the impact of lost productivity severe – in addition to replacement costs, training costs, etc. Money spent to address morbidity – health insurance premiums, healthcare bills, OASDI taxes – reduces disposable income, both for individuals and companies. This can result in less consumer spending and reduced corporate investment in expansion and development of jobs. Thanks for watching. To learn more, please visit About.com