Sleep health spending spans diagnosed-disorder healthcare costs, insomnia-related productivity losses, consumer out-of-pocket payments, and revenue reported by sleep-device companies. The measures below cover U.S. adults, older claims periods, and global company results, so they should not be treated as interchangeable totals.
Key Sleep Health Spending Statistics
The most useful headline figures are:
- In 2018, $18,038 was the mean annual total healthcare expense for U.S. adults with a diagnosed sleep disorder, compared with $11,063 for adults without one.
- In 2018, $6,975 was the adjusted annual incremental healthcare expense associated with a sleep-disorder diagnosis among U.S. adults.
- The 2018 U.S. analysis estimated $94.9 billion in annual direct healthcare costs attributable to diagnosed sleep disorders.
- In the 2018 MEPS analysis, 5.6% of U.S. adults had an identified diagnosed sleep disorder.
- U.S. adults with sleep disorders averaged 16.3 office visits in 2018, compared with 8.7 among adults without sleep disorders.
- In 2018, sleep-disorder adults averaged 39.7 prescription fills annually versus 21.9 for adults without sleep disorders.
- Mean 2018 prescription spending was $6,007 per U.S. adult with a sleep disorder, versus $3,433 for adults without one.
- Mean 2018 out-of-pocket prescription spending was $526 per U.S. adult with a sleep disorder, versus $331 for adults without one.
- Among U.S. adults ages 18–64, insomnia was associated with about $1,253 in higher direct and indirect costs per person during the six months before index dates in July 1999–June 2003.
- For U.S. Medicare beneficiaries, estimated direct costs of untreated insomnia ranged from $994 for one month to $1,369 for three months before the index date.
- One U.S. insomnia model estimated $5.0 billion in annual productivity losses.
- The same model estimated $5,010 in average annual combined direct and indirect cost per person with insomnia syndrome.
- ResMed reported $4,101.2 million in global sleep and respiratory care revenue for fiscal 2024.
- ResMed devices generated $2,444.0 million globally in fiscal 2024, while masks and other products generated $1,657.2 million.
- ResMed sleep and respiratory care revenue grew 10% from fiscal 2023 to fiscal 2024.
- Philips Connected Care reported €5,134 million in global sales in calendar 2024, with Sleep & Respiratory Care representing 19% of the segment.
- By year-end 2024, more than 99% of actionable registered Philips CPAP and BiPAP sleep-therapy devices had been remediated globally.
- In 2022, insufficient sleep among U.S. adults ranged from 30% in Vermont to 46% in Hawaii, based on self-reported short sleep.
Contents
- The U.S. cost of diagnosed sleep disorders
- Sleep-disorder healthcare utilization and spending
- Insomnia spending and productivity costs
- CPAP and respiratory-care revenue trends
- Philips sleep-care sales and remediation
- Sleep need, access and spending context
The U.S. Cost of Diagnosed Sleep Disorders
The strongest broad estimate comes from an analysis of 2018 Medical Expenditure Panel Survey data. It compared U.S. adults with a diagnosed sleep disorder with adults without one and adjusted the comparison across the represented adult population of 242.5 million people.
| Measure | With diagnosed sleep disorder | Without diagnosed sleep disorder |
|---|---|---|
| Mean annual total healthcare expense, 2018 | $18,038 | $11,063 |
| Adults identified with a disorder | 5.6% | — |
| Estimated adult population with a disorder | 13.6 million* | — |
*Huyett and Bhattacharyya estimated the 13.6 million figure by applying study prevalence to the 2010 Census benchmark. The prevalence captures diagnosed disorders in MEPS, not every undiagnosed condition, and the $18,038 comparison does not prove that all spending was caused by the disorder. Incremental health care utilization and expenditures for sleep disorders in the United States
The adjusted incremental healthcare expense was $6,975 per adult per year in 2018. The study estimated direct U.S. healthcare costs attributable to diagnosed sleep disorders at approximately $94.9 billion annually, a national extrapolation of direct healthcare costs rather than a total societal-cost estimate.
Sleep-Disorder Healthcare Utilization and Spending
The same 2018 MEPS analysis shows that the spending gap sits alongside broader all-cause healthcare utilization. These are not necessarily sleep-clinic visits, sleep medicines, or sleep-specific bills.
| 2018 MEPS measure | With sleep disorder | Without sleep disorder | Adjusted difference |
|---|---|---|---|
| Office visits per adult per year | 16.3 | 8.7 | 7.6 |
| Emergency-facility visits per adult per year | 0.52 | 0.37 | 0.16 |
| Prescription fills per adult per year | 39.7 | 21.9 | 17.8 |
| Office-based spending per adult | $3,962 | $2,268 | $1,694 |
| Prescription spending per adult | $6,007 | $3,433 | $2,574 |
| Out-of-pocket prescription spending per adult | $526 | $331 | $195 |
The figures describe U.S. adults in MEPS and include care and prescriptions for all health conditions. The adjusted differences are observational associations; the emergency-visit difference is rounded, and the out-of-pocket measure excludes non-prescription costs. Incremental health care utilization and expenditures for sleep disorders in the United States
In practical terms, adults with a diagnosed sleep disorder averaged 7.6 more office visits and 17.8 more prescription fills annually than adults without one. The study therefore supports a healthcare-utilization signal, but it cannot isolate a single sleep-treatment price from total medical spending.
Insomnia Spending Statistics and Productivity Costs
Insomnia research uses different populations, observation windows, and definitions. The older claims analysis covered six months before index dates during July 1999–June 2003, while the economic model reported annualized direct and indirect categories.
| Population or category | Finding | Period or window |
|---|---|---|
| U.S. adults ages 18–64 with insomnia | About $1,253 higher direct and indirect cost per person | Six months before index date; July 1999–June 2003 |
| U.S. adults age 65+ with insomnia | About $1,143 higher direct cost per person | Six months before index date; July 1999–June 2003 |
| U.S. adults ages 18–64 with insomnia | About $800 direct cost per person | Three months before index date |
| U.S. Medicare beneficiaries with untreated insomnia | $994 to $1,369 direct cost per person | One to three months before index date |
These are study-era claims estimates, not current prices. The older-group estimate covers direct costs only, and the Medicare range reflects different pre-index observation windows. The direct and indirect costs of untreated insomnia in adults in the United States
The separate national model estimated $5.0 billion in annual productivity losses and $339.8 million annually for alcohol used to promote sleep. Its allocation of modeled alcohol spending was $51.1 million, or 15%, for people with insomnia syndrome; $211.2 million, or 62%, for people with insomnia symptoms; and $77.5 million, or 23%, for good sleepers.
Productivity losses represented 83.8% of modeled direct insomnia costs and 76.2% of all modeled insomnia costs. Those percentages describe model-defined categories rather than measured healthcare invoices, and productivity losses should not be confused with healthcare expenditure.
| Group in the model | Average annual combined cost per person |
|---|---|
| Insomnia syndrome | $5,010 |
| Insomnia symptoms | $1,431 |
| Good sleepers | $421 |
The insomnia-symptom category is broader than diagnosed insomnia syndrome, while good sleepers are a model comparator rather than a general population spending average. The Economic Burden of Insomnia: Direct and Indirect Costs for Individuals with Insomnia Syndrome, Insomnia Symptoms, and Good Sleepers
CPAP and Sleep-Respiratory Care Revenue Trends
Company revenue provides an industry-side view of sleep and respiratory care, but it is not the same as total patient spending, insurer payments, or consumer out-of-pocket cost. ResMed reported global sleep and respiratory care revenue of $4,101.2 million in fiscal 2024, up from $3,725.0 million in fiscal 2023 and reported as 10% year-over-year growth.
| ResMed global category or region | Fiscal 2024 revenue | Growth or note |
|---|---|---|
| Sleep and respiratory care | $4,101.2 million | 10% year over year |
| Devices | $2,444.0 million | 8% growth |
| Masks and other products | $1,657.2 million | 14% growth |
| Americas grouping | $2,722.6 million | 10% growth |
| Europe, Asia and other markets | $1,378.6 million | 11% growth |
ResMed’s software-as-a-service revenue was $584.1 million in fiscal 2024, up 17% from $498.0 million in fiscal 2023, although the category includes broader respiratory-care software and is not exclusively sleep spending. Company-wide gross profit was $2,655.3 million with a 56.7% gross margin, and research and development expense was $307.5 million, or 6.6% of net revenue; neither measure is a sleep-only margin or R&D figure. ResMed Inc. 2024 Form 10-K
Philips Sleep-Care Sales and Remediation Data
Philips reported €5,134 million in global Connected Care sales in calendar 2024, with comparable sales increasing 2%. Connected Care includes monitoring, enterprise informatics, and Sleep & Respiratory Care, so the segment total is broader than sleep spending.
| Philips Connected Care mix, 2024 | Share of segment sales |
|---|---|
| Sleep & Respiratory Care | 19% |
| Monitoring | 58% |
| Enterprise Informatics | 23% |
The 19% figure is a segment mix share rather than separately disclosed euro sales. Philips also reported that more than 99% of actionable registered CPAP and BiPAP sleep-therapy devices had been remediated globally by year-end 2024; this applies to actionable registered devices, not every device ever sold.
Connected Care had 16,829 employees worldwide at year-end 2024. That workforce figure covers the entire segment, not Sleep & Respiratory Care alone. Philips 2024 Annual Report
Sleep Health Need, Access and Spending Context
Short-sleep prevalence helps describe potential need, but the CDC measures below are not spending estimates. CDC defines insufficient sleep for adults as fewer than seven hours in a 24-hour period on average, and the BRFSS figures are self-reported.
| Geography or group | Insufficient sleep prevalence | Period |
|---|---|---|
| Vermont adults | 30% | 2022 |
| Hawaii adults | 46% | 2022 |
| Boulder County, Colorado adults | 24% | 2020 |
| Greene County, Alabama adults | 48% | 2020 |
| U.S. men | 37% | 2022 |
| U.S. adults ages 45–64 | 39% | 2022 |
| U.S. Native Hawaiian or Pacific Islander adults | 49% | 2022 |
The 2020 county estimates came from PLACES modeling using BRFSS, American Community Survey, and Census inputs, so they are not direct county spending observations. CDC also notes gaps in core-survey years; these prevalence measures should therefore be read as context for sleep-health need and access, not as a conversion into healthcare costs. FastStats: Sleep in Adults