CDC Sequestration Cuts Will Only Add to US Financial Problems, Say GlobalData Analysts

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CDC Sequestration Cuts Will Only Add to US Financial Problems, Say GlobalData Analysts

NEW YORK, USA (GlobalData), 4 March 2013 - With the Centers for Disease Control and Prevention (CDC) expected to see its budget slashed by close to $450m, or about 8% of its total funding for FY2013 as part of the impending sequestration cuts, the agency's ability to protect individuals from preventable infectious diseases is likely to be hampered. But analysts from research and consulting firm GlobalData argue that not only will the CDC be a less capable governmental body, but the cuts will ultimately fail to accomplish the goal of decreasing federal spending

"Disease prevention represents the most economically viable method to reduce long-term healthcare costs," says Dr. Christopher Pace, infectious disease analyst for GlobalData.

"The incidence of chronic infections, such as viral hepatitis, HIV, and other sexually transmitted diseases would also be expected to increase with the elimination of prevention programs. These chronic infections require lifelong treatment that can become expensive."

The sequestration's effect on the CDC's ability to prevent infectious disease through immunization, surveillance, and response programs will prove particularly damaging. The American Public Health Association (APHA) has estimated that these reductions will prevent the vaccination of 30,000 children and 20,000 adults against largely preventable diseases such as tuberculosis, measles, tetanus, and whooping cough.

The cuts will also affect the US pharmaceutical industry. A report by the Senate Appropriations Committee Majority Staff estimates that around 650,000 fewer people would be tested for HIV, and 12,000 fewer uninsured, HIV-infected patients would receive therapy in 2013.

Dr. Brad Tebbets, also a member of GlobalData's infectious disease team says: "These decreases are not expected to have a major effect on the HIV therapy market, but the sequestration could push providers towards lower cost therapies, decreasing demand for high-priced HIV regimens, such as Gilead's Stribild."

Decreasing the CDC's ability to prevent disease could also impede the recent shift of American medicine from treatment to prevention of disease – a move which has been championed as a method to lower healthcare costs in the long-term.

"The resulting increase in the incidence of preventable foodborne and infectious-disease illnesses would increase the demand for therapeutics, such as antiviral and antimicrobial drugs," explains Tebbets.

"This market growth would likely cost taxpayers more in the long term, both fiscally and physically, than any of the perceived short-term savings that would be realized as part of the sequestration."

* Cutting Preventative Care Funding is a Poor Investment

-ENDS-

-NOTES TO EDITORS-

Dr. Christopher Pace and Dr. Brad Tebbets are part of GlobalData's infectious disease analyst team. For more information, or to request and interview, please contact our press office.

For guidelines on how to cite GlobalData, please see: http://www.globaldata.com/QuotingGlobalData.aspx

-ABOUT GLOBALDATA-

GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant, reliable and actionable strategic business intelligence available for a wide range of industries.

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