Long-term fiscal implications of subsidizing in-vitro fertilization in                 Sweden: A lifetime tax perspective

Svensson, Anders; Connolly, Mark P.; Gallo, Federico; Hägglund, Leif

doi:10.1177/1403494808095086

Cited by 15 publications

(13 citation statements)

References 20 publications

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“…According to the results, the child’s initial IVF investment represented a 700% net return in discounted US dollars. In another modified GA model, which was developed for Sweden,33 it was revealed that state-funded IVF does not negatively impact the long-run fiscal budget; conversely, over an average lifetime, an IVF offspring returns a positive net value to the state. Another model, developed for Brazil, estimated that the fiscal contribution generated by each IVF-conceived citizen can justify an initial government investment in infertility treatment, but this initial expenditure may be compensated for by the fiscal contribution in the next generation 34.…”

Section: Discussionmentioning

confidence: 99%

Estimating the long-term effects of in vitro fertilization in Greece: an analysis based on a lifetime-investment model

Fragoulakis¹,

Maniadakis²

2013

CEOR

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ObjectiveTo quantify the economic effects of a child conceived by in vitro fertilization (IVF) in terms of net tax revenue from the state’s perspective in Greece.MethodsBased on previous international experience, a mathematical model was developed to assess the lifetime productivity of a single individual and his/her lifetime transactions with governmental agencies. The model distinguished among three periods in the economic life cycle of an individual: (1) early life, when the government primarily contributes resources through child tax credits, health care, and educational expenses; (2) employment, when individuals begin returning resources through taxes; and (3) retirement, when the government expends additional resources on pensions and health care. The cost of a live birth with IVF was based on the modification of a previously published model developed by the authors. All outcomes were discounted at a 3% discount rate. The data inputs – namely, the economic or demographic variables – were derived from the National Statistical Secretariat of Greece and other relevant sources. To deal with uncertainty, bias-corrected uncertainty intervals (UIs) were calculated based on 5000 Monte Carlo simulations. In addition, to examine the robustness of our results, other one-way sensitivity analyses were also employed.ResultsThe cost of IVF per birth was estimated at €17,015 (95% UI: €13,932–€20,200). The average projected income generated by an individual throughout his/her productive life was €258,070 (95% UI: €185,376–€339,831). In addition, his/her life tax contribution was estimated at €133,947 (95% UI: €100,126–€177,375), while the discounted governmental expenses for elderly and underage individuals were €67,624 (95% UI: €55,211–€83,930). Hence, the net present value of IVF was €60,435 (95% UI: €33,651–€94,330), representing a 182% net return on investment. Results remained constant under various assumptions for the main model parameters.ConclusionState-funded IVF may represent good value for money in the Greek setting, since it has positive tax benefits for the government, notwithstanding its beneficial psychological effect on infertile couples.

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Section: Discussionmentioning

confidence: 99%

Estimating the long-term effects of in vitro fertilization in Greece: an analysis based on a lifetime-investment model

Fragoulakis¹,

Maniadakis²

2013

CEOR

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“…All costs In the model have been converted from Danish Krones (DKK) to Euros (€) based on an exchange rate of €1 = 7.45 DKK. Broadly speaking there are four major life stages considered in the model: early child, education, working and retirement (Svensson et al, 2008).…”

Section: Modelling Frameworkmentioning

confidence: 99%

The long-term fiscal impact of funding cuts to Danish public fertility clinics

Connolly

Postma

Crespi

et al. 2011

Reproductive BioMedicine Online

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“…The cost-efficiency of state investments in IVF is assessed by calculation of net income, usually expressed through taxes and other state revenues received from the working population. Economic evaluations revealed that there were net tax benefits of IVF financing in both high-income countries (eg, the USA, UK, Denmark, Sweden)3–7 and medium-income countries like Brazil 8. Net income gained from the IVF populations in all countries studied was positive; however, the largest gain was found for the UK (£109,939), while the smallest gain was found for Brazil (US$ 61,428).…”

Section: Introductionmentioning

confidence: 93%

Economic value of in vitro fertilization in Ukraine, Belarus, and Kazakhstan

Mandrik¹,

Knies²,

Severens³

2015

CEOR

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BackgroundAn economic value calculation was performed to estimate the lifetime net present value of in vitro fertilization (IVF) in Ukraine, Belarus, and Kazakhstan.MethodsNet lifetime tax revenues were used to represent governmental benefits accruing from a hypothetical cohort of an IVF population born in 2009 using the methodology of generational accounting. Governmental expenses related to this population included social benefits, education and health care, unemployment support, and pensions. Where available, country-specific data referencing official sources were applied.ResultsThe average health care cost needed to achieve one additional birth from the governmental perspective varied from $2,599 in Ukraine to $5,509 in Belarus. The net present value from the population born using IVF was positive in all countries: for Ukraine ($9,839), Belarus ($21,702), and Kazakhstan ($2,295). The break-even costs of drugs and supplies per IVF procedure is expected to be $3,870, $8,530, and $1,780, respectively. Probabilistic sensitivity analyses based on 5,000 simulations show that the average net present value per person remains positive: $1,894±$7,619, $27,925±$12,407, and $17,229±$24,637 in Ukraine, Belarus, and Kazakhstan, respectively.ConclusionFinancing IVF may represent a good investment in terms of governmental financial returns, even in lower-income countries with state-financed health care systems such as Ukraine, Belarus, and Kazakhstan.

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Long-term fiscal implications of subsidizing in-vitro fertilization in Sweden: A lifetime tax perspective

Abstract: Based on results presented here we conclude that State-funded IVF in Sweden does not negatively impact the long run fiscal budget. Conversely, over an average lifetime an IVF offspring returns a positive net value to the State.

Cited by 15 publications

References 20 publications

Estimating the long-term effects of in vitro fertilization in Greece: an analysis based on a lifetime-investment model

Estimating the long-term effects of in vitro fertilization in Greece: an analysis based on a lifetime-investment model

The long-term fiscal impact of funding cuts to Danish public fertility clinics

Economic value of in vitro fertilization in Ukraine, Belarus, and Kazakhstan

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