What Does Obesity Really Cost?
Obesity in the workplace: More than an
added health care expense, it's likely
dragging your
productivity down . . . more down than
you might
think.
Today, as employers look to squeeze more
productivity out of downsized workforces
(and it's becoming more of a squeeze), it's a
good time to consider how much obesity is
dragging down the bottom line - and how
investing in promoting wellness can begin to
turn it around. It's an issue employers, and
the government in its health care reform
discussion, must tackle.
(This is a longer article than usual, but it
focuses on a problem that is moving toward
the top of the health care debate, and one
that we can all address - effectively. We
hope you'll take the time to read it!)
By the time an employee is about 50 pounds
overweight the number of lost workdays jumps
to 117 days per 100 full
time employees (versus only 14 days per 100
full time employees at ideal body weight).
Workers comp claims are nearly twice as high,
and medical costs are three times higher.
And, even just a few extra pounds can make a
big difference. For workers who are
overweight but not obese, the lost-workday
rate increases by a factor of four and
medical claims nearly double. (CLICK
HERE to find out what obesity is costing
your organization.)
According to a study by The Conference Board,
obesity costs U.S. private employers an
estimated $45 billion a year in medical
expenditures and worker absenteeism. The
study found that obesity is associated with
an overall 36 percent increase in health care
spending, more than either smoking or
alcoholism. And, since 34 percent of American
adults fit the definition of obesity, this is
a challenge. A study released in November by
the UnitedHealth Foundation, American Public
Health Association and Partnership for
Prevention finds that by 2018, just 8 years
from now, 43 percent of the population will
be considered obese and U.S. spending on
health care costs attributable to obesity
will quadruple - to $344 billion.
Since 1991, the number of Americans
considered morbidly obese has increased more
than 74 percent. Consider the following
obesity-related statistics:
- Annual medical expenses for employees
range from $114 for normal-weight individuals
to $573 for overweight individuals to $620
for the obese. (American Journal of Health
Behavior)
- 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 non-obese
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 associated with a 36 percent
increase in spending on health care services,
and 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)
- 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.
- The Social Security Administration pays
more than $77 million per month to
those who
meet obesity requirements for disability.
(American Obesity Association)
One of the problems facing employers looking
to address these issues is that obesity is
considered a medical condition, as opposed to
a lifestyle choice like smoking. Many
companies already charge employees who smoke
more for their health insurance. And, more
and more, organizations are instituting
wellness programs to encourage employees to
lose weight - but presented in the wrong way,
it opens the employer up to legal liability
if they are too forceful or insensitive in
the way they administer the program. Sooo . . .
Consider an approach to wellness that avoids
the pitfalls of a direct assault on obesity
but instead takes a more all-encompassing
approach to dealing with the root causes of
disease. Look at what can happen when you
shift your wellness focus from the 20 percent
of those who drive 80 percent of the cost of
health care to your entire workforce. Now,
you are effectively addressing cost avoidance
rather than simply cost reduction, and doing
it on a workforce-wide basis. By creating a
"Culture of Wellness," you improve overall
health - on an ongoing, sustainable level.
Consider too, that how employers present a
wellness / weight loss program can be as
important as initiating a program. Top
management must be supportive and involved,
and employees must believe the program is
being done for them, not to them. And, as
more employees take steps to improve their
health, you can bet they'll value an employer
that helps them achieve their goals. And this
is how we move from "sick care" to a
sustainable wellness solution.
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