The economic case for fixing racial health disparities

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Addressing long-standing racial disparities in access to and provision of quality health care in the U.S. is not just a question of equity and morality. In the Urban Institute report Estimating the Cost of Racial and Ethnic Health Disparities (September 2009), senior health researcher Timothy Waidmann estimates that the cost of unaddressed disparities comparing African-Americans and Latinos to whites will be $337 billion, including $220 for Medicare nationally. The report focused on diabetes, hypertension, stroke and renal disease as these conditions are believed to be the most amenable to reductions in prevalence through preventive care and disease management. The report makes predictions based on current demographics and also includes a table depicting growth over the next several years anticipated by the Census Bureau among African-Americans and Latinos who are Medicare-eligible. These types of reports suggest that it makes economic sense for health care reform to include a significant fix for racial disparities in health care access.