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Aging diseases - do they prevent preventive health care from saving costs?

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  • Afschin Gandjour

    (Institute of Health Economics and Clinical Epidemiology, University of Cologne, Köln, Germany)

Abstract

The potential of preventive health-care services to save costs is intensely debated. On the one hand, a longer life span increases the probability that new and costly diseases occur. On the other hand, a higher life expectancy postpones the expensive last year of life (LYOL), which becomes cheaper with age. Using US expenditure data on survivors and decedents the paper shows that prevention in the general population causes expenditures for additional diseases that are larger than the savings from postponing the LYOL. This result may also hold for prevention in diseased individuals. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1370
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 18 (2009)
Issue (Month): 3 ()
Pages: 355-362

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Handle: RePEc:wly:hlthec:v:18:y:2009:i:3:p:355-362

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Victor R. Fuchs, 1984. ""Though Much is Taken" -- Reflections on Aging, Health, and Medical Care," NBER Working Papers 1269, National Bureau of Economic Research, Inc.
  2. John A. Nyman, 2004. "Should the consumption of survivors be included as a cost in cost-utility analysis?," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(5), pages 417-427.
  3. Gandjour, Afschin & Lauterbach, Karl Wilhelm, 2005. "Does prevention save costs?: Considering deferral of the expensive last year of life," Journal of Health Economics, Elsevier, Elsevier, vol. 24(4), pages 715-724, July.
  4. Wickstrom, Jannie & Serup-Hansen, Niels & Kristiansen, Ivar Sonbo, 2002. "Future health care costs--do health care costs during the last year of life matter?," Health Policy, Elsevier, Elsevier, vol. 62(2), pages 161-172, November.
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