Oct. 3 (Bloomberg) -- Cancer, diabetes and other chronic diseases may shave about $6 trillion from the U.S. economy by 2050 unless steps are taken to prevent the illnesses and encourage healthier lifestyles, a new study found.

The costs could be avoided if medical expenses and lost productivity associated with seven diseases affecting more than half of all Americans are reduced, the Santa Monica, California- based Milken Institute said in a report today.

More than 162 million cases of chronic disease were diagnosed in the U.S. in 2003, costing $1.3 trillion in medical care and lost productivity, authors Ross DeVol and Armen Bedroussian wrote. Early disease detection, dieting, exercise and less smoking are needed to save lives and money, they said.

``Our current health-care debates focus primarily on the extension of coverage and the design of efficient financing mechanisms,'' the authors wrote. ``Equal attention should be paid to addressing the rising rates of chronic illness that will sap our productivity and drive our health-care costs needlessly higher.''

Real GDP may be as much as $37.9 trillion by 2050 with ``reasonable disease prevention and management efforts,'' compared with $32.2 trillion if current trends continue, the report said.

The other chronic diseases highlighted in the report are heart disease, hypertension, stroke, mental disorders and pulmonary-related conditions. An analysis of the nation's 50 states showed Utah had the lowest and West Virginia the highest rate of disease, it said.

To contact the reporter on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net.

Last Updated: October 3, 2007 00:53 EDT