PAR5: DIRECT AND INDIRECT COSTS OF RESPIRATORY INFECTIONS

Abstract

OBJECTIVES: Morbidity due to respiratory infections leads to significant adverse societal and economic consequences. This study investigates the extent to which treatment for respiratory infections imposes a financial burden on an employer, and documents variations in employer payments between specific respiratory infections. METHODS: The data source is a rich administrative claims database for a national, Fortune 100 manufacturer. It includes 1997 medical, pharmaceutical, and disability claims for employees, spouses, dependents, and retirees (n> 100,000) under age 65. The research sample consists of individual patients with one or more medical or disability claims for at least one of eleven respiratory infection condition. Resource utilization is contrasted with a 10 percent random sample of the employer's overall beneficiary population. RESULTS: Direct (medical and pharmaceutical) and indirect (disability and sporadic absenteeism) costs are analyzed. The average per capita annual costs are: for the entire employer population, $2,368; for all respiratory infections patients, $4,397; and for respiratory infections employees eligible for disability, $6,838. Total costs for respiratory infections patients are 1.8 times those for the typical beneficiary. Total costs are highest for patients with pneumonia ($11,544) and lowest for patients with acute tonsillitis and acute pharyngitis ($2,180). Medical and pharmaceutical treatment account for 65% of total costs for all respiratory infections employees, while the remaining 35% of costs are attributable to disability and sporadic absenteeism. CONCLUSIONS: Respiratory infections impose a significant financial burden on the employer. Resource utilization by respiratory infections patients is substantial, not only for the direct treatment of respiratory infections, but also for the treatment of co-morbid medical conditions of respiratory infections patients. These costs also vary considerably by type of respiratory infection. The study also shows that respiratory infections impose substantial indirect costs on employers from work loss associated with these infections.