The Cost of Chronicity: Analyzing the Direct Economic Burden of Chronic Diseases in the U.S. from 1996 to 2040

Maria Rosa Nieto () and Odra A. Saucedo-Delgado
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Maria Rosa Nieto: Facultad de Economía y Negocios, Universidad Anáhuac, Huixquilucan 52786, Mexico
Odra A. Saucedo-Delgado: Facultad de Economía y Negocios, Universidad Anáhuac, Huixquilucan 52786, Mexico

Economies, 2025, vol. 13, issue 11, 1-25

Abstract: The mounting prevalence of chronic diseases poses a substantial public health and economic burden, particularly in aging societies such as the United States. Focusing on both direct healthcare expenditure and indirect costs such as productivity loss, this study examines the economic burden of chronic non-communicable diseases (NCDs) from 1996 to 2040. A multidisciplinary approach is employed, integrating panel data models to identify determinants of real healthcare spending across ten chronic conditions and an Autoregressive Integrated Moving Average (ARIMA) forecasting model to estimate future expenditure as a share of national Gross Domestic Product (GDP). The estimations are based on data available for the period 1996–2015, which serve as the foundation for projections up to 2040. The results show that chronic diseases—especially cardiovascular conditions, diabetes, and respiratory illnesses—are associated with persistent increases in public and private healthcare costs and substantial reductions in labor productivity. Disparities by age, income, and race further intensify this burden. Projections suggest that the financial impact of chronic diseases will escalate significantly through 2040, exceeding the rate of GDP growth. Our study concludes that indirect costs are often underestimated in many models, which limits accurate fiscal planning. We thus underscore the need for integrated economic health forecasting tools to support sustainable, equity-focused health policies. These findings support calls for increased investment in prevention, coordinated chronic care, and more robust data systems to anticipate long-term health and economic outcomes.

Keywords: chronic diseases; economic burden; health expenditures; productivity loss; ARIMA forecasting; panel data analysis (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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