The Cost of Obesity at the Worksite

THE HEALTH AND WELL-BEING OF YOUR MOST VALUABLE ASSET – YOUR EMPLOYEES – HAS A VERY REAL AND DIRECT IMPACT ON YOUR BOTTOM LINE.

A staggering 65% of U.S. adults are either overweight or obese. How many employees is that at your organization? How does that impact the bottom line? Consider the following example. Company ABC has 1,000 employees.

1. # of overweight or obese employees = 650
2. Extra healthcare cost per employee = $395*
3. Total extra healthcare cost to company = $256,750

With numbers like this, no company can afford to ignore this epidemic.

*Obesity adds $395 per person per year to the cost of health care.
(A RAND Corporation study released in March 2002).

CAN YOUR COMPANY ABSORB THE GROWING COST OF OBESITY?

• In 2002, health insurance premiums rose at a rate 8 times faster than general inflation. - (National Coalition on Health Care)
• Since 1997, health-benefit costs per employee have risen 57%. - (Mercer Human Resource Consulting)
• Employers spend 77% more on prescription drugs for the seriously overweight. - (Reported in Reuters, Tuesday, June 17, 2003.)
• Obese individuals spend about 36% more than the general baseline population on health services. - (A RAND Corporation study released in March 2002).
• Persons with an at-risk Body Mass Index (an indicator of being overweight/obese) take twice as many sick days compared to those not at risk. - (Source: The Economic Costs Associated With Body Mass Index in a Workplace. JOEM 40:5, No. 9, 786-792, 1998.)
• Organizations lose more than $12 billion per year due to consequences associated with obesity and weight-related conditions. - (Reported in Reuters, Tuesday, June 17, 2003.)
• “Obesity is the #1 health threat in the United States today.” - (Reported in Reuters, October 28, 2003).