The rising costs of health care services and health insurance premiums continue to be a major cause for concern among employers. Health insurance premiums generally track the underlying growth of the cost of health services. In fact, approximately 87 percent of the costs of health insurance are benefits paid out, with administrative costs and profits accounting for the other 13 percent. (PricewaterhouseCoopers)

The consensus is that these costs will continue to increase. In addition, employers bear a sizable portion of costs associated with treating obesity-related conditions, including lost productivity and paid sick leave and the increased cost of health, life, and disability insurance. In fact, the U.S. Department of Health and Human Services estimates lost time adds 50 percent more to an employer’s health care costs.

Obese workers file twice the number of workers' compensation claims, have seven times higher medical costs from those claims and lose 13 times more days of work from work injury or work illness than do nonobese workers. (Duke University Study, Archives of Internal Medicine, Truis Ostbye, MD, PhD)

	Obese individuals spend 77 percent more on medications. Only aging has a greater effect on medication spending. (Rand Health, "The Effects of Obesity, Smoking and Problem Drinking on Chronic Medical Problems and Health Care Costs,” R. Strum, February 2002.)
	Obesity is now more costly to U.S. companies than smoking or alcoholism. (The Conference Board, 2008)
	Obesity is associated with 53 health conditions and has roughly the same association with chronic health conditions as 20 years of aging. (Center for Disease Control)
	Annual medical expenses for employees ranges from $114 for normal-weight individuals to $573 for overweight individuals to $620 for the obese. (American Journal of Health Behavior)
	The number of lost workdays is almost 13 times higher, medical costs are seven times higher and indemnity claims costs are 11 times higher among the heaviest employees compared with those of recommended weight (Duke University).
	Annual medical claims per 100 employees: Overweight—more than $13,900; mildly obese—more than $19,000; moderately obese—more than $23,300; severely obese—more than $51,000 (Duke University).

Why Wellness Matters

By implementing a well-conceived and proactive employee weight loss and wellness initiative, you position your organization to derive multiple benefits:
	Reduce employee health care costs
	Improve productivity through reduced absenteeism and presenteeism
	Improve employee morale and communication
	Improve employee retention
	Demonstrate that you value your most important resource—your employees
	Achieve a measurable ROI
	Create a sustainable new Culture of Wellness within your organization

Obesity costs the health care system about $147 billion a year. To put that figure in perspective, the American Cancer Society estimates that all cancers combined cost our health care system $93 billion a year. (Centers for Disease Control and Prevention, Thomas R. Frieden, director)

According to the National Institutes of Health, 66 percent of American adults age 20 and older (127 million) are classified as overweight (BMI > 25) and approximately 33 percent, almost one of every three Americans (60 million) are obese (BMI > 30). Nine million are morbidly obese. An estimated 300,000 deaths a year are attributed to obesity. Overweight and obesity are major contributors to the escalating rates of heart disease, diabetes, hypertension, musculoskeletal conditions, stroke, certain types of arthritis, gall bladder disease, some cancers, poor female reproductive health, depression and other life-threatening illness. The Center for Disease Control estimates that the medical cost of obesity in the U.S. is $75 billion annually. And now, the overweight / obesity epidemic is reaching the youngest segment of our population. The percentage of overweight children ages 2 to 5 has increased from 7 percent to 10 percent in the last decade.

To receive a specific proposal and to find out how easy it can be to create a new and sustainable Culture of Wellness within your organization please contact LoneStart Wellness.