The Value of Medican and Pharmaceutical Interventions for Reducing Obesity

Pierre-Carl Michaud, Dana Goldman, Darius Lakdawalla, Yuhui Zhen and Adam H. Gailey

Cahiers de recherche from CIRPEE

Abstract: This paper attempts to quantify the private and public economic value of reducing obesity through pharmaceutical and medical interventions. We find that the economic value of such treatments, in particular bariatric surgery, is large for treated patients, with incremental cost-effectiveness ratios typically under $20,000 per life-year saved. Our approach accounts for competing risks to life expectancy, health care cost savings, and other non-medical fiscal consequences. Most of the therapeutic value is generated by longer healthy life expectancy, with modest contributions from health spending, taxes and other spending. Obesity treatment generates substantial per-period savings in medical costs, but it also raises lifetime medical and annuity costs by extending life. On balance, treatment generates substantial private economic value and lowers the prevalence of obesity, but the aggregate fiscal effects on the public-sector are small.

Keywords: Obesity; health spending; ageing; microsimulation (search for similar items in EconPapers)
JEL-codes: I10 I38 J26 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-hea
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Related works:
Journal Article: The value of medical and pharmaceutical interventions for reducing obesity (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:lacicr:1109

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