The $2.8 Trillion Opportunity: How Better Health for All Can Drive US Economic Growth

The Deloitte Center for Health Solutions’ latest analysis reveals how businesses can benefit from a healthier, more productive workforce and contribute to a more equitable society.

Health status in the United States varies widely across gender, geography, race, ethnicity, and socioeconomic circumstances, and is impacted by other life experiences and systemic biases. The cost of health inequities is substantial, impacting both business performance and the nation’s economic prosperity. According to the Deloitte Center for Health Solutions’ economic analysis, improving health equity across the United States could add US$2.8 trillion to the US gross domestic product by 2040. For US-based businesses, we estimate that corporate profits could increase by $763 billion in the same time period through more equitable health outcomes (see methodology).

And according to our research, improving health equity isn’t just a job for the US health care system alone. Public and private organizations could gain from the economic growth and have a direct role to play by making health equity a strategic priority in their workforce resources and operations, products and services, community engagement, and cross-sector collaborations. Sectors such as agriculture, manufacturing, retail, technology, transportation, and many more could reap the commensurate economic benefits that come from a healthier population and workforce. By working to address health gaps, businesses could see improved workforce participation and productivity, significant financial gains, and a more equitable society.

Health inequities are costly

• Systemic costs are increasing. Resources spent on poor outcomes, reduced work productivity, and the financial burdens on individuals due to health disparities appear to be hindering US economic growth. In previous research conducted by the Deloitte Center for Health Solutions and US actuaries, we estimated that direct medical costs associated with health inequities amount to $320 billion for the health care system and could exceed $1 trillion by 2040 if the issue is unaddressed.
• Inequities reduce productivity for businesses and the workforce. In prior research by the Meharry Medical College School of Global Health in collaboration with the Deloitte Health Equity Institute, we estimated that mental health and co-occurring physical health inequities cost businesses $7 billion due to missed work, $45 billion due to reduced productivity while at work, and $63 billion due to unemployment. Additional research shows that the workforce impacts of various chronic conditions and cancer, which have disproportionate burdens on people from marginalized backgrounds, can range from 10% to 70% in productivity loss.
• Health inequities impact individuals financially. Prior analysis by the Deloitte US actuarial team shows that employed women, on average, pay $266 more in out-of-pocket spending per year than employed men, which is just over 18% more than men’s out-of-pocket costs, excluding pregnancy-related services. A survey of more than 2,000 US adults conducted by the Deloitte Center for Health Solutions in 2024 shows that women are 30% more likely than men to skip care due to costs and are also more likely (44% vs. 25%) to be financially unprepared for an unexpected $500 medical emergency.

Businesses can achieve growth and value by investing in more affordable, equitable, and effective health solutions. Although these investments require upfront costs, they can ultimately offset the rising expenses that are currently being incurred and are expected to increase over time. Our estimates show that reducing health inequities can create significant economic value, including a gain in GDP and benefits for businesses. By 2040, the potential gains in GDP could reach $2.8 trillion, including $763 billion for corporate profits. These figures represent increases of 9.5% and 9.9% respectively over current projections.

Visit Deloitte.com to learn more.

Written by Kulleni Gebreyes, Jay Bhatt, David Rabinowitz, Michelle A. Williams, Mani Keita, Wendy Gerhardt