A study by the Urban Institute found that cutting the rate of chronic disease growth through prevention programs could save Medicare and Medicaid upwards of $50 billion per year by 2030. In addition, prevention can lower private insurance costs while reducing worker absenteeism due to illness.
According to the findings in this RWJF-funded report by the Institute of Medicine (IOM), society’s fixation on clinical care, its delivery, and its financing overshadows population-based activities that more efficiently and effectively improve the nation’s health. The health system’s failure to develop and deliver effective preventive strategies continues to take a growing toll on the economy and society.
Recent studies show how investing strategically in proven, community-based prevention programs could offer a substantial savings over traditional medical treatments for illnesses such as diabetes and cardiovascular disease, lowering health care costs and improving people’s quality of life. This brief summarizes the findings and recommendations from four major studies released between 2008 and 2011.
Researchers at the Partnership for Prevention analyzed the impact of highly-rated community and clinical preventive services, such as childhood immunizations, tobacco cessation counseling, and daily aspirin use to prevent heart disease, and found that they continue to be a good value because of their health impact and cost-effectiveness. The team also created analytic tools to assess the health and economic benefits of interventions to improve health and prevent disease at the community level.
Obesity is one of the biggest drivers of preventable chronic diseases and health care costs in the country. Nearly 69% of Americans are overweight or obese. Related health care costs now exceed $147 billion annually, more than $60 billion of which is covered by Medicare and Medicaid.
Investments in efforts to prevent chronic health problems like obesity can have significant budget savings. Yet despite widespread evidence that prevention efforts can save lives and money, for every dollar spent on health care in the United States, only four cents goes towards public health and prevention.
Unless the obesity epidemic is reversed, overall medical spending will become untenable and outpace GDP growth. If obesity rates are reduced by as little as 5%, health care savings could exceed $29 billion.
Read the issue briefCities and states are reporting declining childhood obesity rates. Philadelphia, NYC, Mississippi, and California are fighting the epidemic head on—and seeing real changes.
Learn moreTo fully account for the cost savings that come from obesity-prevention programs, we need to expand the time horizon for estimating costs from 10 years to 25, says the authors, in a major report funded by RWJF.
Read the reportInvesting more in community- based prevention will be critical for the nation to prevent illness and control costs, argues RWJF President and CEO Risa Lavizzo-Mourey in a June 2012 essay in The Atlantic.
The laws and policies that reduce smoking—tobacco taxes, smoke-free air laws, and cessation programs—offer a powerful vehicle for improving health and reducing health care costs. This Campaign for Tobacco-Free Kids brief summarizes the major studies on how tobacco-prevention programs have reduced smoking (for both adults and kids) and saved money on related health care costs.
RWJF's interactive map offers a nationwide picture of continuing state efforts on key tobacco control policies, including smoke-free laws, cigarette tax rates, and total tobacco control spending.
