Table 2.
Examined health outcomes and estimated costs
| Health outcome | Definition of the low-SES group | The estimated cost | Prices used for monetization | Data sources |
|---|---|---|---|---|
| 1. Mortality | Localities with a submedian socioeconomic index | 1a. Product loss due to premature death of workers and deaths before the working age | Workers’ wages | CBS socio-health profile of localities for 2005–2009; CBS profile of municipal authorities for 2009 and for 2010 |
| 1b. Welfare loss due to excess mortality | The value of statistical life: The value used by the Ministry of Transport, or 3 times GDP | |||
| 2. Morbidity | Individuals with a submedian net household income per standard person | 2a. Product loss due to illness-related absence from work | Labor wages of submedian workers (absentees or non-absentees) | CBS social surveys (2010, 2012) |
| Individuals with secondary schooling or less | 2b. Product loss due to higher rates of non- employment due to illness | Labor wages of workers with secondary schooling or less | ||
| 3. Medical care | Localities with a submedian socioeconomic index | 3a. Excess inpatient care (measured by excess hospital discharges) | MoH price per inpatient day X average length of hospitalization | MoH data on hospital discharges rates; MoH price schedule (2014) |
| Individuals with a submedian net household income per standard person | 3b. Savings on community care (due to underuse of services) | MoH service prices | CBS’s matched Health Survey (2009) and Income Survey (2010); MoH price schedule (2014) | |
| 4. Disability | Localities with a submedian socioeconomic index | 4a. Excess government’s expenditure on disability benefits | Rates of disability benefits | NII data on disability benefit payments |
| Individuals with submedian labor income | 4b. Excess cost of the government’s income tax exemption for to the disabled and the blind | Workers’ tax exemption | The Israel Tax Authority’s sample of employees | |
| 5. Old-age survival | Localities with a submedian socioeconomic index | Government’s savings on old-age benefits (due to premature mortality) | Rates of old-age benefits | NII data on old-age and survivors’ benefits |
| 6. Other | – | Cost of MoH programs to narrow SES-related health inequalities | MoH data |
Abbreviations: GDP Gross Domestic Product, CBS The Central Bureau of Statistics, MoH The Ministry of Health, NII The National Insurance Institute