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The Cost of Ill Health WP 10/04

Appendix H

Appendix Table H1 shows point estimates and confidence intervals for the number of people affected by each cost component. As an example, an estimated 1,301,700 people are affected by the costs considered. The 95% confidence interval around this figure is (1,254,900; 1,348,400).

Appendix Table H1 – Estimates of number affected and 95% confidence intervals – 2004/05
  Number of people affected
Count Lower CI Upper CI
Direct costs      
Ill health inpatient appointments

267,700

252,600

282,800

Indirect costs      
Absenteeism 315,700 299,400 332,100
Presenteeism 939,2004 916,600 961,800
Working fewer hours 458,500 419,400 486,200
Not being in the workforce 42,300 26,600 58,000
Total Indirect 1 1,196,200 1,158,200 1,234,100
Total 2 3 1,301,700 1,254,900 1,348,400

Source: SoFIE/NZHIS Wave 3 Version 4, adjusted longitudinal weights, Statistics New Zealand

Notes:
1. Direct costs are for those aged 17 and over. Indirect costs are for working age non-students.
2. The total number of people affected is not the sum of the individual groups as the groups are not mutually exclusive; that is, some people can appear in both groups.
3. To estimate the total number of people affected it is assumed that the additional number of people who would participate in the absence of ill health are those with hospital appointments.
4. Count is from Method 1 – Maximum.

Appendix Table H2 shows point estimates and confidence intervals for the number of hours lost by each cost component. Estimates of hours lost are only possible for indirect costs. To estimate the number of hours lost for absenteeism, presenteeism and working fewer hours the number of people affected is assumed to be fixed. To estimate the lost hours for those not in the workforce the lower and upper confidence intervals for the number of people affected are taken. For these people it is assumed that the lost hours are fixed at full-time hours (that is, eight-hour days for 260 days a year). The total hours lost for the indirect components considered are estimated to be 206.9 million to 579.6 million, with a 95% confidence interval (142.2 million to 502.7 million; 271.5 million to 657.3 million). Taking the estimate of presenteeism from Method 1 and Assumption 2 the total hours lost from indirect components are estimated to be 375.1 billion with a 95% confidence interval (304.7 million; 445.3 million).

Appendix Table H2 – Estimates of hours lost and 95% confidence intervals – 2004/05
  Hours lost (mn)
  Count Lower CI Upper CI
Indirect costs      
Absenteeism 10.3 9.6 11.0
Presenteeism 36.3 – 409.0 34.5 – 395.0 38.2 – 424.0
Working fewer hours 72.3 42.8 101.7
Not being in the workforce 88.0 55.3 120.6
Total indirect 206.9 – 579.6 142.2 – 502.7 271.5 – 657.3

Source: SoFIE/NZHIS Wave 3 Version 4, adjusted longitudinal weights, Statistics New Zealand

Note: Indirect hours lost are for working age non-students.

Appendix Table H3 shows the estimates of costs and the associated confidence intervals by each cost component. To calculate the confidence intervals for the costs, the confidence intervals for the lost hours are used and evaluated at the average full-time hourly rate from the New Zealand Income Survey ($19.95). It is assumed that the average full-time pay rate is fixed (at $19.95), although this itself will be subject to sampling error as it is from the New Zealand Income Survey. The total cost of the components considered is estimated to be $5.417 billion to $ 12.853 billion, with a 95% confidence interval ($3.997 billion to $11.189 billion; $6.827 billion to $14.524 billion). Taking the estimate of presenteeism from Method 1 and Assumption 2 the total estimated costs are $8.773 billion with a 95% confidence interval ($7.239 billion; $10.294 billion).

Appendix Table H3 – Estimates of cost and 95% confidence intervals – 2004/05
  Cost ($bn)
  Point estimate Lower CI Upper CI
Direct costs      
Ill health inpatient appointments 1.290 1.160 1.410
Indirect costs – Evaluated at full-time hourly wage  
Absenteeism 0.205 0.191 0.219
Presenteeism 0.724 – 8.160 0.688 – 7.880 0.762 – 8.459
Working fewer hours 1.442 0.854 2.029
Not being in the workforce 1.755 1.104 2.407
Total indirect 4.127 – 11.563 2.837 – 10.029 5.417 – 13.114
Total 5.417 – 12.853 3.997 – 11.189 6.827 – 14.524

Source: SoFIE/NZHIS Wave 3 Version 4, adjusted longitudinal weights, Statistics New Zealand

Note: Direct costs are for those aged 17 and over. Indirect costs are for working age non-students.

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