The Health and Economic Costs of Poor Sleep

Reviewed by: HU Medical Review Board | Last reviewed: June 2020

Between 50 and 70 million adults in the United States have a sleep disorder.1 Problem sleep costs people, their employers, and their families in a variety of ways. In fact, the University of Maryland found that untreated insomnia, just one of many sleep disorders, costs $100 billion a year.2

Another study looked at more than 4,000 employees at 4 U.S. companies. It found that poor sleep cost the companies $1,967 per employee each year.3

Lack of good quality sleep doesn’t just cost money, it leads to a variety of health and safety issues too, including:1

  • Nearly 38 percent of people with a sleep disorder report accidentally falling asleep during the day at least once in the last month.
  • Nearly 5 percent report falling asleep while driving at least once in the last month.
  • Drowsy driving results in 1,550 deaths and 40,000 injuries in the U.S. each year.
  • 100,000 deaths occur in U.S. hospitals each year due to medical errors that are often caused by lack of sleep.

The number of people who report sleep issues is increasing. Doctors believe the increase is partially caused by our always-on culture and growing rates of obesity. This means the costs of sleep disorders is rising too.4

Health costs of sleep disorders

Sleep disorders are common, with between 1 to 2 in 10 of all people complaining to their doctor about sleep problems.5

Lack of sleep impacts a person’s emotional and physical health. Relationships, social life, and overall happiness may take a beating if someone can’t get enough sleep. It is common for people with sleep disorders to report feeling tired, confused, irritable, indifferent, or lacking empathy. None of these emotions make for good human relations.4

Physically, sleeplessness has been tied to a host of serious health problems, such as:4-7

  • Heart disease
  • High blood pressure
  • Obesity
  • Diabetes
  • Stroke
  • Early death
  • Higher injury rates

Poor sleep may also make many chronic diseases worse, including arthritis, kidney disease, HIV, epilepsy, Parkinson’s disease, and depression. In older people, poor sleep can lead to exhaustion, lower quality of life, and less independence.6

Economic costs of sleep disorders

Poor sleep is expensive for both the person, companies, and society. When people try to work through daytime sleepiness, fatigue, exhaustion, the financial costs include:3-4

  • Higher healthcare expenses
  • Lost productivity at work and home
  • Increased accidents, especially while driving
  • More short-term disability
  • More missed days of work
  • Lost income for the person
  • Lost taxes paid to the government

The good news is that while sleep disorders are costly, treatment is cost-effective. One study found that treating insomnia with drugs and behavioral changes costs much less than not treating it.1 Another study reported that people with sleep apnea who were treated with CPAP therapy before surgery had fewer heart problems after surgery.7

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