Medical Costs of Obesity Severely Underestimated

iStock_000004796897XSmall.jpgPrevious studies seriously underestimated the medical costs of obesity in the United States.  According to new research published by the National Bureau of Economic Research, approximately $168 billion or nearly 17% of the U.S. medical costs stem from obesity.  This is double the amount of previous estimates and stands in stark contrast to an influential study released last year which estimated that obesity-related medical costs reached only $147 billion, or about 9% of total medical costs. 

To put this in perspective for employees and employers, the new study suggests that the added cost to an individual’s annual medical bills is approximately $2,826.  As employers around the country grapple with higher medical costs, it is important to understand what may be contributing to medical costs and how to combat them.  Many employers have seen effective cost controls from well thought-out wellness programs or from instituting a subsidy for exercise or weight-loss programs.  Additionally, while not every company can offer a state-of-the-art gym to its employees, there are other less costly options to consider.  For example, some employers could offer employees more healthy options in vending machines, access to walking routes, or time for physical activity breaks.      

The study’s authors also suggest that their results underscore the potential cost effectiveness of anti-obesity interventions and the economic rationale for government intervention to reduce obesity-related medical costs.  First Lady Michelle Obama has made combating childhood obesity her signature initiative.  Last Spring, a White House task force submitted a 120-page report, which outlined 70 recommendations to decrease childhood obesity.  The recommendations ranged from educating women about the health benefits of breastfeeding (which has been tied to a decrease in childhood obesity) to a proposition to boost the quantity of fruits and vegetables grown in the United States.  It is still too early to tell the extent to which the current administration will attempt to take these recommendations and make them into law. 

Gregory C. Keating authored this entry.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.