All it takes is a walk through any town in America to realize that obesity is a national epidemic. And obviously there are some major medical and productivity costs associated with a nation whose health is so compromised.
According to a new study from the Society of Actuaries, the total is a staggering $300 billion. For some perspective on just how huge that figure is, it exceeds the combined amount the federal government spent in 2010 on the Department of Transportation ($72.5 billion) Department of State ($51.7 billion), Department of Education – ($46.7 billion), Department of Homeland Security ($42.7 billion), Department of Energy ($26.3 billion), Department of Agriculture ($26.0 billion) and Department of Justice ($23.9 billion).
Not surprisingly, 90% of that $300 billion is attributed to the United States with Canada’s problem being less pronounced.
“We found substantial evidence that overweight and obesity are becoming world-wide epidemics, and are having negative impacts on health and mortality,” said actuary Don Behan, FSA, FCA, MAAA and independent consulting actuary. “As actuaries, we are working with the insurance industry to help incentivize consumers through their health plan design to focus on health and wellness, which will hopefully help curb the weight and health problems we face today.”
Reversing this trend is going to be incredibly difficult.
Corporate health and wellness incentives may be one thing that individual organizations can do to gain a competitive edge in terms of medical cost payouts and productivity improvements.
Don Behan sums it up well.
“We can’t stand back and ignore the fact that overweight and obesity are drivers of cost increases and detrimental economic effects. It’s time for actuaries, the employer community and the insurance industry to take action and help consumers make smart, healthy decisions.”
Since it’s January 10, most people are probably about to start failing to fulfill their New Year’s resolutions to exercise more often and eat better. For the business community, however, getting healthier needs to be a new millennium resolution.
And it’s one we need to keep.
Thanks for helping bring this issue to the forefront, Jared. NCCI has also recently published a study that confirms the significant impact of obesity on workers comp claims. I’ve written more about it on the WorkCompEdge blog at
http://workcompedgeblog.com/2011/01/11/obesity-weight-workers-comp-claims/
Maybe we should start with the kids. Movement, food choices and portion control are great. I know of one parent who had a 170 pound 7th grader. She decided and could afford to send her daughter to a weight loss camp in Pa. one summer. She learned portion control and lost 20 pounds that summer. She graduated from high school a trim 115 pounds and is now in college and still weighs 115. I realize everyone can’t afford this. Maybe the health insurance carriers should consider these weight loss camps as part of their benefit packages. It’s probably a very good preventive measure. Some of these camps take kids as young as seven years old.
If obesity is such an important issue, it is time we teach our children both at home, at school or on tv about the importance of being healthy, and keeping a healthy weight.
My name is Roberto Andrade. Have you heard of the company Herbalife. My wife and I work with Herbalife since some time in Brazil. Our daughter lost weight 12kg a year ago and has maintained his weight. I would like to communicate with you for further information with the intention of explaining what is to work with Herbalife products and gains from this work that for us has been a success. In Canada there is a very large population of obese individuals who need quality of life and this is what Herbalife sells. Herbalife operates in 75 countries, making $ 3 billion. I ask you to give me the opportunity to speak with you. My email robertoandr@oi.com.br