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Estimating the causal effect of liability to disease on healthcare costs using Mendelian Randomization

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  • Dixon, Padraig
  • Harrison, Sean
  • Hollingworth, William
  • Davies, Neil M.
  • Davey Smith, George

Abstract

Accurate measurement of the effects of disease status on healthcare costs is important in the pragmatic evaluation of interventions but is complicated by endogeneity bias. Mendelian Randomization, the use of random perturbations in germline genetic variation as instrumental variables, can avoid these limitations. We used a novel Mendelian Randomization analysis to model the causal impact on inpatient hospital costs of liability to six prevalent diseases and health conditions: asthma, eczema, migraine, coronary heart disease, Type 2 diabetes, and depression. We identified genetic variants from replicated genome-wide associations studies and estimated their association with inpatient hospital costs on over 300,000 individuals. There was concordance of findings across varieties of sensitivity analyses, including stratification by sex and methods robust to violations of the exclusion restriction. Results overall were imprecise and we could not rule out large effects of liability to disease on healthcare costs. In particular, genetic liability to coronary heart disease had substantial impacts on costs.

Suggested Citation

  • Dixon, Padraig & Harrison, Sean & Hollingworth, William & Davies, Neil M. & Davey Smith, George, 2022. "Estimating the causal effect of liability to disease on healthcare costs using Mendelian Randomization," Economics & Human Biology, Elsevier, vol. 46(C).
  • Handle: RePEc:eee:ehbiol:v:46:y:2022:i:c:s1570677x22000508
    DOI: 10.1016/j.ehb.2022.101154
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    Cited by:

    1. Jiwoo Lee & Sakari Jukarainen & Antti Karvanen & Padraig Dixon & Neil M. Davies & George Davey Smith & Pradeep Natarajan & Andrea Ganna, 2023. "Quantifying the causal impact of biological risk factors on healthcare costs," Nature Communications, Nature, vol. 14(1), pages 1-11, December.

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    More about this item

    Keywords

    Genetics; Disease liability; Instrumental variables; Healthcare costs; Mendelian randomization;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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