What is the Cost of Obesity to Your Organization?

Currently, two-thirds of Americans are considered overweight or obese.[1] The effects of such a high obesity rate on the cost of health care to employers, independent of size, are widespread and can result in direct and indirect costs.[2]

In 2000, the total cost (direct and indirect) attributable to obesity was estimated to be $117 billion[3], and between 1987 and 2001, diseases associated with obesity accounted for 27 percent of the increases in medical costs.[4] Medical expenses for obese employees are estimated to be between 29 percent and 117 percent greater than medical expenses for employees with a healthy weight.[5]

Obesity and the health conditions associated with it; such as, hypertension, type 2 diabetes, stroke, coronary heart disease, and certain types of cancer, are responsible for much of the increase in health care spending by employers.[6] Obese persons spend 77 percent more money for medications than non-obese persons[.6]

Obesity affects more than health care costs, it also has a significant impact on worker productivity because the more chronic medical conditions an employee has, the higher the probability of absenteeism or presenteeism.[7]

Organizations can benefit directly by improving employee health through an obesity prevention program. A survey of CEOs found that "healthier employees" is the number one reason why companies choose to implement health promotion programs.[8] Additionally, well-designed programs have the potential to extend beyond the worksite and positively influence dependents (spouses and children), and thereby reduce an organization's health care costs.

Although it may seem that only large organizations can implement obesity prevention and control programs, organizations of all sizes have done so successfully. Many types of organizations, including non-profits and small businesses, are implementing successful obesity prevention programs.

Potential benefits to employers:

• Reduces cost for chronic diseases.
• Decreases absenteeism.
• Reduces employee turnover.
• Improves worker satisfaction.
• Demonstrates concern for your employees.
• Improves morale.

Potential benefits to employees

• Ensures greater productivity.
• Reduces absenteeism.
• Improves fitness and health.
• Provides social opportunity and source of support within the workplace.

Well designed and properly delivered obesity prevention programs that promote better nutrition and increased physical activity can reduce employee risk for additional conditions that drive up health care costs. Lifestyle changes that bring about 5 percent to 7 percent loss in body weight can prevent or delay the onset of type 2 diabetes for people at high risk for the disease.[9]

• Regular physical activity helps control weight, as well as reducing risk for heart attack, some cancers, type 2 diabetes, metabolic syndrome, and high blood pressure.[10]
• Increased consumption of fruits and vegetables helps reduce the risk for heart disease and certain cancers.[11]

This information was taken from the CDC's LEAN Works! Web site. For more information, please visit http://www.cdc.gov/leanworks/index.html

1. Frequently Asked Questions. In: CDC. Overweight and Obesity. Available at http://www.cdc.gov/nccdphp/dnpa/obesity/faq.htm. Accessed 2008 June.

2. Aldana S. The Costs of Unhealthy Behaviors. Absolute Advantage Available from URL Available at http://www.welcoa.org/freeresources/pdf/costs_of_unhealthy_behaviors.pdf* (PDF-867k). Accessed 2008 June.

3. Wolf AM, Manson JE, Colditz GA. The Economic Impact of Overweight, Obesity and Weight Loss. In: Eckel R, ed. Obesity: Mechanisms and Clinical Management. Lippincott, Williams and Wilkins; 2002.

4. Thorpe KE, Florence CS, Howard DH, Joski P. The impact of obesity on rising medical spending. Health Aff (Millwood). 2004 Jul-Dec;Suppl Web Exclusives:W4-480-6

5. Finkelstein E, Fiebelkorn C, Wang G. The costs of obesity among full-time employees. Am J Health Promot. 2005;20(1):45-51.

6. U.S. Department of Health and Human Services. Prevention Makes Common Cents. Available at http://aspe.hhs.gov/health/prevention/#N_43_ Accessed 2008 June.

7. Partnership for Prevention. Leading by Example: Improving the Bottom Line through a High Performance, Less Costly Workforce. p. 4. Available at http://www.prevent.org/images/stories/Files/docs/LBE_Book.pdf*. (PDF-7.10Mb) Accessed 2008 June

8. Business Roundtable. Doing Well through Wellness: 2006–2007 Survey of Wellness Programs at Business Roundtable Member Companies. p. 1. Available at http://www.businessroundtable.org/sites/default/files/
BR_Doing_Well_through_Wellness_09192007.pdf* (PDF-347k) Accessed 2008 June.

9. Knowler WC B-CE, Fowler, S et al. Reduction in the incidence of the type 2 diabetes with lifestyle intervention of metformin. N Engl J Med. 2002;346:393-403.

10. U.S. Department of health and Human Services. 2008 Physical Activity Guidelines for Americans. Available at http://www.health.gov/PAGuidelines/pdf/paguide.pdf (PDF-855k). Accessed 2008 June.

11. U.S. Department of Health and Human Services. Dietary Guidelines for Americans. Available at http://www.health.gov/DietaryGuidelines. Accessed 2008 October.