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The Economic Impact of Vision Loss in Australia in 2009

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The Economic Impact of Vision Loss in Australia in 2009 Clear Focus The Economic Impact of Vision Loss in Australia in 2009 A report prepared for Vision 2020 Australia by Access Economics Pty Limited June 2010 © Access Economics Pty Limited This work is copyright. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgment of the source is included. Permission for any more extensive reproduction must be obtained from Access Economics Pty Limited through the contact officer listed for this report. Disclaimer While every effort has been made to ensure the accuracy of this document and any attachments, the uncertain nature of economic data, forecasting and analysis means that Access Economics Pty Limited is unable to make any warranties in relation to the information contained herein. Access Economics Pty Limited, its employees and agents disclaim liability for any loss or damage which may arise as a consequence of any person relying on the information contained in this document and any attachments. Access Economics Pty Limited ABN 82 113 621 361 www.AccessEconomics.com.au CANBERRA MELBOURNE SYDNEY Level 1 Level 27 Suite 1401, Level 14 9 Sydney Avenue 150 Lonsdale Street 68 Pitt Street Barton ACT 2600 Melbourne VIC 3000 Sydney NSW 2000 T: +61 2 6175 2000 T: +61 3 9659 8300 T: +61 2 9376 2500 F: +61 2 6175 2001 F: +61 3 9659 8301 F: +61 3 9376 2501 For information on this report please contact Lynne Pezzullo or Penny Taylor E: [email protected] Report prepared by Penny Taylor Anam Bilgrami 2 Cost of vision loss This report has been prepared by Vision 2020 Australia, in collaboration with Access Economics and the project steering committee. The financial support of members including the Brien Holden Vision Institute, Optometrists Association Australia, The Royal Australian and New Zealand College of Ophthalmologists and Vision Australia, as well as Alcon Australia and Pfizer Australia is gratefully acknowledged. Vision 2020 Australia is a national body working in partnership to prevent avoidable blindness and improve vision care. Vision 2020 Australia, Melbourne, Australia, June 2010 ISBN 978-0-9808202-0-1 Contents Glossary ...................................................................................................................................... i Executive Summary ....................................................................................................................... i 1 Background ........................................................................................................................ 7 2 Prevalence rates and projections ....................................................................................... 8 2.1 Definitions - vision loss and blindness ................................................................................. 8 2.2 Cataract .............................................................................................................................. 9 2.3 Glaucoma ......................................................................................................................... 11 2.4 Diabetic retinopathy ......................................................................................................... 13 2.5 Age-related macular degeneration ................................................................................... 15 2.6 Refractive error ................................................................................................................ 17 2.7 Overall prevalence of vision loss and projections .............................................................. 20 3 Mortality .......................................................................................................................... 25 4 Health system costs ......................................................................................................... 26 4.1 Description ....................................................................................................................... 26 4.2 Methodology .................................................................................................................... 26 4.3 Health system expenditure on disorders of the eye and adnexa in 2009 ........................... 29 4.4 Health expenditure projections to 2020............................................................................ 35 5 Other financial costs ........................................................................................................ 39 5.1 Productivity losses ............................................................................................................ 39 5.2 Informal care costs ........................................................................................................... 43 5.3 Funeral costs .................................................................................................................... 45 5.4 Welfare payments ............................................................................................................ 45 5.5 Deadweight losses from transfers ..................................................................................... 47 5.6 Other indirect costs: aids, home modifications and other carer ........................................ 48 5.7 Summary of other financial costs ...................................................................................... 50 6 Loss of wellbeing in 2009 ................................................................................................. 51 6.1 Methodology .................................................................................................................... 51 6.2 Loss of wellbeing from vision disorders in 2009 ................................................................ 53 7 The total cost of vision loss in Australia ........................................................................... 58 7.1 Cost summary ................................................................................................................... 58 7.2 Comparison with previous report ..................................................................................... 59 8 International comparisons ............................................................................................... 62 8.1 Worldwide ........................................................................................................................ 62 8.2 United Kingdom ................................................................................................................ 65 8.3 Canada ............................................................................................................................. 66 8.4 United States .................................................................................................................... 67 8.5 Summary .......................................................................................................................... 68 9 Eliminating avoidable blindness in the current environment of health system reform ... 70 9.2 Health reform ................................................................................................................... 73 Cost of vision loss 9.3 Summary and conclusion .................................................................................................. 86 References ................................................................................................................................. 89 Charts Chart 2.1 : Vision loss by cause among Australians aged 40 or over, 2009(a) ........................... 21 Chart 2.2 : Blindness by cause among Australians aged 40 or over, 2009 ................................. 22 Chart 2.3 : Projections of Australians (aged 40 or over) with vision loss ................................... 23 Chart 2.4 : Vision loss by cause among Australians aged 40 or over, 2020(a) ........................... 24 Chart 2.5 : Blindness by cause among Australians aged 40 or over, 2020 ................................. 24 Chart 4.6 : Allocated health system expenditure, 2009 (total $2.58 billion)(a) ......................... 30 Chart 4.7 : Allocated health system expenditure in 2009 by condition (total $2.58 billion)(a) . 31 Chart 4.8 : Allocated health system costs by age group in 2009 ($m) ....................................... 33 Chart 4.9 : Allocated health system costs by age group in 2004 and 2009 ($m 2009) .............. 34 Chart 4.10 : Allocated health system costs ($m), 2009 and 2020 .............................................. 37 Chart 4.11 : Allocated health system costs ($m), by disease, 2009 and 2020 ........................... 38 Chart 5.12 : DWL of taxation ..................................................................................................... 48 Chart 7.13 : Components of total economic cost of vision loss in 2009 (total $16.6 billion) ..... 59 Chart 9.14 : Separations for type 2 diabetes mellitus as principal diagnosis by complication, 2007-08 ...................................................................................................................... 80 Chart 9.15 : Elective surgery waiting times by specialty of surgeon(a)...................................... 81 Tables Table 2.1 : Prevalence rates for vision loss and blindness from cataract .................................. 10 Table 2.2 : Vision loss from cataract - number of people(a) .....................................................
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