Obesity Contributes to Rising Health Care Costs
Author of New Obesity Study Recommends Change in Tax Code
May 26, 2009
The group wants Congress to pass legislation that would encourage employees to participate in employer-sponsored health and wellness programs. The study, Weighty Matters: How Obesity Drives Poor Health and Health Spending, was written by Dr. Kenneth Thorpe and released May 7, 2009. Thorpe and his colleagues looked at the role obesity plays in rising health care costs and rates of chronic diseases.
Specifically, the study found:
- The prevalence of 11 chronic conditions stemming from obesity grew 180 percent from 1997 to 2005
- Average per capita health spending increased by 40 percent from 1997 to 2005
- The average per capita health spending for the 15 costliest conditions, which are associated with obesity climbed 55 percent
- Obesity accounts for 27 percent of the increase in inflation-adjusted health expenditures among working-age adults and
- If the rate of obesity were the same today as it was in 1987, health care spending in the United States would be about $200 billion less each year
Companies Fight Obesity
Stamford, Connecticut-based Pitney Bowes is one company developing innovative strategies for helping its employees improve their health and combat incidence of obesity. In 2001, the company created Health University to improve employee health and maintain a lower-than-average cost trend with health insurance premiums. Threatened with an aging workforce and increased health care claim costs, Pitney Bowes created a strategy to prevent obesity. It promoted increased physical activity for its workers and their families.
In addition, Mobile Gym USA, a company in the Baltimore, Maryland, is fighting obesity by bringing the gym to its customers. The mobile gym, which is equipped with weight-training and aerobic exercise machines visits clients in their homes or offices. The company has personal trainers that help customers achieve their goals for every age group. The advantage of Mobile Gym USA is that customers don’t have to pay a long-term contract or pay gym fees for facilities that aren’t used.
Congress Should Change Tax Code on Obesity
NBGH is pushing Congress to adopt changes in tax policy. The group said the changes are needed to increase employee participation in worksite health and wellness programs. Internal Revenue Services treats expenses for medical care and treatment of disease favorably but not activities and programs designed to prevent disease and maintain health, Thorpe said. This keeps companies from adopting wellness programs, he added. The group recommends Congress allow exemptions from income tax if employees participate in an employer wellness program. It also said employees should be able to pre-tax dollars to pay for their share of health and wellness activities and to purchase fitness, nutrition, exercise and weight-management programs. Finally, NBGH told Congress to allow employees to deduct out-of-pocket expenses for health and wellness programs up to 7.5 percent adjusted gross income like they can for medical expenses.
72 Million People Are Fat
According to the Centers for Disease Control and Prevention, adult obesity in the United States has doubled, and childhood obesity has tripled in the last 25 years. In 2007, more than 72 million people in America were obese, the CDC said.
Rising costs of health care are linked to rising incidence of obesity. NBGH said Congress needs to act now to help employers stem the tide of obesity. Some companies already are proactive in preventing obesity among their employees. Many more companies taking action are needed, NBGH said.
