Disability: Economic Costs and Insurance Protection

Chronic conditions reduce economic activities, and the consequence may be a reduction in income and in social networking efforts and opportunities. When these chronic conditions are a cause of the inability to perform one or more necessary occupational tasks, work hours and earnings are likely to be limited, and wage growth over a person's lifetime will be less than if work were not limited. The cost of disabling conditions to the older population is due to the effect of these conditions on earnings, as well as on the timing of earlier withdrawal from the labor force. Further, the economic constraints imposed by disability reduce the probability of medical intervention. Reductions in social contact that are often associated with chronic conditions may shut off the possibilities of nonpaid assistance and make the social rewards of beneficial lifestyle changes that could mitigate the risk and progress of these conditions less evident.