Health disparities inflict a significant level of illness, disability, and death on the nation’s racial and ethnic minorities. However, in addition to excess morbidity and mortality, health disparities impose a significant economic burden on society. In 2009, health disparities cost the U.S. economy $82.2 billion in direct health care spending and lost productivity. These costs impose an unnecessary economic burden on minority communities, but also represent a loss to the American economy through lost productivity. This report helps to make the case for why although the complexity of factors contributing to health disparities makes eliminating them costly, inaction or action that results in further cuts to important health programs that help to address these disparities will prove to be much more costly.