Medical Errors Cost $19.5B in 2008

The Society of Actuaries’ Health Section has published a research report measuring the annual frequency of medical errors in the United States and the total measurable cost to the United States economy because of these errors, according to a news release by SOA.

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Of 6.3 million measurable medical injuries, approximately 1.5 million were associated with a medical error. The total cost per error was estimated to be approximately $13,000, resulting in a total cost to the United States economy of $19.5 billion in 2008.

Eighty-seven percent, or $17 billion, of that amount is due to medical costs of providing inpatient, outpatient and prescription drug services to individuals who were affected by the medical errors.

An additional $1.4 billion of the total amount was due to indirect costs of increased mortality rates, and another $1.1 billion was related to lost productivity due to short-term disability claims.

Read the SOA data on The Economic Measurement of Medical Errors (pdf).

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