How Much Does Low Literacy Levels Cost Per Year In Direct Healthcare Costs?

An initial approximation places the order of magnitude of the cost of low health literacy to the U.S. economy in the range of

$106 billion to $238 billion annually

. This represents between 7 percent and 17 percent of all personal healthcare expenditures.

How much does health literacy cost annually?

Through all its impacts — medical errors, increased illness and disability, loss of wages, and compromised public health — low health literacy is estimated to cost the U.S. economy

up to $236 billion every year

.

Do people with low health literacy have higher costs for health care?

For example, uninsured and publicly insured (e.g., Medicaid) individuals are at higher risk of having low health literacy. Studies have found that older adult Medicare beneficiaries with low health literacy have

higher medical costs

,

²⁸

increased ER visits and hospital admissions,

²⁹

and decreased access to health care.

Who pays the fiscal cost for low health literacy?

While a significant share of the health care costs fall on the patients with low health literacy skills, health care providers and those that finance those providers share the burden.

Medicare

pays 39 percent of the expenditures. Most of the additional expenditure is financed through FICA taxes on workers.

How does low literacy affect health?

Low health literacy has been consistently associated with

poor health outcomes

, including poorer health status [7–9], lack of knowledge about medical conditions and related care [10], lack of engagement with health care providers [11], decreased comprehension of medical information [10], mortality [12], and poorer use …

What is low health literacy associated with?

Low health literacy (a generic term, not associated with a particular literacy test) has been associated with

decreased use of preventative services

,

^{3 – 8}

higher utilization of acute health care services among those with chronic disease,

⁹

poorer health status,

^{4 – 6 , 8 – 11}

and worse health outcomes, including increased …

Is low health literacy a disparity?

Indeed health literacy has been found to be associated with many of the drivers of health disparities. Studies in the US have shown that

non-Whites have more often limited health literacy than Whites

[9–11].

What role does communication play in becoming a health literate individual?

Good communication is

linked to improved patient satisfaction, adherence to medical recommendations, and health outcomes

. … These include patients with limited or no English proficiency, limited health literacy, or cultural backgrounds that are not well understood by hospital or health system staff.

What are some signs a person may have low healthcare literacy?

• Incomplete or inaccurate registration forms and other paperwork.
• Frequently missed appointments.
• Nonadherence with medications or assigned treatment programs.

Why is there poor health literacy?

A number of factors may influence an individual’s health literacy, including living in poverty, education, race/ethnicity, age, and disability. Adults

living below the poverty level have lower health literacy than adults living above the poverty level

.

How can I improve my health literacy?

Speak more slowly when providing instructions

. Be respectful and clear without being patronizing. Use graphics and pictures instead of long written instructions. Provide information at an appropriate grade level.

What are the four skills of health literacy?

Health literacy is not simply the ability to read. It requires a complex group of

reading, listening, analytical, and decision-making skills

, and the ability to apply these skills to health situations.

What are the levels of health literacy?

The four literacy levels are

(1) below basic, (2) basic, (3) intermediate, and (4) proficient

. In addition, any adults who could not complete the assessments because of language, or other obstacles, were not included in the final scoring (5%) (Kutner et al., 2007).

Which of the following minority groups have the highest level of poor health literacy?

Among the limited-English proficient,

Chinese

respondents had the highest prevalence of low health literacy (68.3%), followed by Latinos (45.3%), Koreans (35.6%), Vietnamese (29.7%), and Whites (18.8%).

How do you address health literacy?

1. Avoid one phrase with two interpretations. Even commonly used words such as “could” and “might” can be difficult to understand. …
2. Write out acronyms and other new terms. …
3. Avoid using common words in unusual ways. …
4. Be culturally sensitive. …
5. Ask open-ended questions.