Fiscal Impact

Accurately assessing the costs of osteoporosis is a difficult task, and different studies produce different estimates. What all have in common is concluding that the costs are immense. One study estimates the annual direct costs due to osteoporosis fractures are around $18 billion, and are expected to double by 2050 as more Americans get older.1

A study from the journal Osteoporosis International based on expense data from 2002 found that the average fracture patient’s expenses were $4,420 for the fracture treatment and $27,730 overall, including hospital stays and long-term care. Costs were found to be even higher for hip fracture patients, averaging $39,620 overall.

The financial burden of osteoporosis fractures for America’s healthcare system overall in 2002 was found to be between $10 billion and $17 billion, with an additional $2 billion in physician visits and drug expenses for osteoporosis non-fracture treatments. Osteoporosis-related costs in 2008 were estimated to be at $22 billion based on prevalence trends and medical cost inflation.2

Although many of these costs are paid through Medicare, the financial burdens for those on private insurance are also severe. One study analyzed data from a private insurance plan which enrolled patients diagnosed with osteoporosis and compared those who experienced non-vertebral fractures with those who did not. The fracture patients were found on average to spend $7,339 more than non-fracture patients.3 It is clear that no matter who pays, osteoporosis is a costly disease.

Fortunately, osteoporosis is a treatable disease, and like any other disease the costs associated with it can be effectively managed with early detection. One study suggests that osteoporosis treatment becomes cost-effective when the risk of a potential fracture approaches three percent over a ten-year period.4

Simple online tools can facilitate the evaluation of fracture risk and lead to these cost-effective treatments being used earlier, when their efficacy can be maximized. Another study emphasized the cost savings potential of more bone mass density screenings in Medicare, finding that if an additional one million women were screened in 2002 the Medicare program would save over $77 million in reduced fracture treatments and hospital stays.5

Sources:
1. Compston, J. “Osteoporosis: Social and Economic Impact,” Radiologic Clinics of North America 48 (2010): 477-482.
2. Blume SW, Curtis JR. “Medical costs of osteoporosis in the elderly Medicare population.” Osteoporosis International online publication (2010). DOI: 10.1007/s00198-010-1419-7. Accessed March 8, 2011.
3. Pike C, Birnbaum HG, Schiller M, Swallow E, Burge RT, Edgell ET. “Economic burden of privately insured non-vertebral fracture patients with osteoporosis over a 2-year period in the US.” Osteoporosis International 22 (2011): 47-56.
4. Tosteson ANA, Melton III LJ, Dawson-Hughes B, Baim S, Favus MJ, Khosla S, Lindsay RL. “Cost-effective osteoporosis treatment thresholds: the United States perspective.” Osteoporosis International 19 (2008): 437-447.
5. King AB, Saag KG, Burge RT, Pisu M, Goel N. “Fracture Reduction Affects Medicare Economics (FRAME): Impact of increased osteoporosis diagnosis and treatment.” Osteoporosis International 16 (2005): 1545-1557.

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