Economic consequences of obesity in the workplace web ready

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Obesity negatively impacts employers through increased absenteeism, presenteeism, and medical costs. Absenteeism alone costs employers $18 billion per year, while presenteeism accounts for $41 billion in lost productivity. Medical costs for obese employees are significantly higher than for non-obese employees, totaling $147 billion annually for employers. Combined, obesity costs U.S. employers $73.1 billion per year in excess medical costs and absenteeism.

Economic
Consequences of
Obesity in the
Workplace
Brian Campoli

Overview
• Obesity negatively
affects employers
• Absenteeism
• Presenteeism
• Lower productivity
• Higher medical costs
• Combined costs to
employers $73.1
Billion/year

Absenteeism
• Missing work due to
Obesity related
problems
• >5 days a year due to
Obesity related
problems
• Accounts for 18% of
overall costs

Presenteeism
• Employees working
despite health issues
• Lowers productivity
level
• Accounts for 41% of
overall costs

Higher Medical Costs

Over $46,000
for men
Lifetime
Over $72,000
Medical for women
Costs
Yearly
Over $2,000
Average

Obesity Costs to Employers

18%

41% Abesenteeism
Presenteeism
Health Costs
41%

Medical Costs: 1987 vs. 2009

Weight Spending Per Adult in Spending Per Adult in
1987 2009

Normal $2440 $4030

Obese $2640 $5330

Morbidly Obese $2530 $7010

Summary
• Obesity causes lower
productivity in the
workplace
• $73.1 Billion annually
• Medical costs for the
obese are on the rise
• $147 Billion total annually

A solution, perhaps?

Sources
• Elmendorf, D. (2010, September 8). How Does Obesity in Adults
Affect Spending on Health Care? Retrieved from cbo.gov:
http://www.cbo.gov/ftpdocs/118xx/doc11810/09-08-
Obesity_brief.pdf
• Finkelstein, E. (n.d.). The Economic Causes and Consequences of
Obesity. Retrieved from www.clocc.net:
http://www.clocc.net/images/pdf/Finkelstein6705.pdf
• Hutchinson, C. (2010, October 8). Obesity in the Workplace Costs the
U.S. Billions. Retrieved from abcnews.go.com:
http://abcnews.go.com/Health/Wellness/obese-workers-cost-73-
billion-extra-year/story?id=11823715#.Tz7RQ7HOWbm
• RTI International. (2009, July 27). Obesity Costs U.S. About $147
Billion Annually, Study Finds. Retrieved from www.rti.org:
http://www.rti.org/news.cfm?objectid=329246AF-5056-B172-
B829FC032B70D8DE

Sources Con’t
• Wojcik, J. (2010, October 17). Research shows cost of employee
obesity. Retrieved from businessinsurance.com:
http://www.businessinsurance.com/article/20101017/ISSUE01/310
179970
• Yale Rudd Center. (2012). Economic Impact of Obesity. Retrieved
from www.yaleruddcenter.org:
http://www.yaleruddcenter.org/what_we_do.aspx?id=82
• Microsoft Clip Art, Businessman sitting in his office cubicle, retrieved
from February, 15, 2012
• Microsoft Clip Art, Metaphor for money growing on a tree, retrieved
from February, 15, 2012
• Microsoft Clip Art, Person chasing money, retrieved from
February, 16, 2012
• United States Federal Government, Obesity Waist
Circumference, retrieved from February, 16, 2012

- Obesity rates are highest in southern states like Mississippi and lowest in states like Colorado and Hawaii - Rising obesity rates are increasing national healthcare spending and benefiting insurance companies and hospitals - Obese individuals and their families spend more on weight loss drugs, fast food, and hospital stays rather than cooking at home - Adults' obesity can influence children's health as childhood obesity rises along with overall obesity rates

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Promoting Wellbeing - Applied Social Psychology - Psychology SuperNotes

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Economic consequences of obesity in the workplace web ready

1. Economic Consequences of Obesity in the Workplace Brian Campoli

2. Overview • Obesity negatively affects employers • Absenteeism • Presenteeism • Lower productivity • Higher medical costs • Combined costs to employers $73.1 Billion/year

3. Absenteeism • Missing work due to Obesity related problems • >5 days a year due to Obesity related problems • Accounts for 18% of overall costs

4. Presenteeism • Employees working despite health issues • Lowers productivity level • Accounts for 41% of overall costs

5. Higher Medical Costs Over $46,000 for men Lifetime Over $72,000 Medical for women Costs Yearly Over $2,000 Average

6. Obesity Costs to Employers 18% 41% Abesenteeism Presenteeism Health Costs 41%

7. Medical Costs: 1987 vs. 2009 Weight Spending Per Adult in Spending Per Adult in 1987 2009 Normal $2440 $4030 Obese $2640 $5330 Morbidly Obese $2530 $7010

8. Summary • Obesity causes lower productivity in the workplace • $73.1 Billion annually • Medical costs for the obese are on the rise • $147 Billion total annually A solution, perhaps?

9. Sources • Elmendorf, D. (2010, September 8). How Does Obesity in Adults Affect Spending on Health Care? Retrieved from cbo.gov: http://www.cbo.gov/ftpdocs/118xx/doc11810/09-08- Obesity_brief.pdf • Finkelstein, E. (n.d.). The Economic Causes and Consequences of Obesity. Retrieved from www.clocc.net: http://www.clocc.net/images/pdf/Finkelstein6705.pdf • Hutchinson, C. (2010, October 8). Obesity in the Workplace Costs the U.S. Billions. Retrieved from abcnews.go.com: http://abcnews.go.com/Health/Wellness/obese-workers-cost-73- billion-extra-year/story?id=11823715#.Tz7RQ7HOWbm • RTI International. (2009, July 27). Obesity Costs U.S. About $147 Billion Annually, Study Finds. Retrieved from www.rti.org: http://www.rti.org/news.cfm?objectid=329246AF-5056-B172- B829FC032B70D8DE

10. Sources Con’t • Wojcik, J. (2010, October 17). Research shows cost of employee obesity. Retrieved from businessinsurance.com: http://www.businessinsurance.com/article/20101017/ISSUE01/310 179970 • Yale Rudd Center. (2012). Economic Impact of Obesity. Retrieved from www.yaleruddcenter.org: http://www.yaleruddcenter.org/what_we_do.aspx?id=82 • Microsoft Clip Art, Businessman sitting in his office cubicle, retrieved from February, 15, 2012 • Microsoft Clip Art, Metaphor for money growing on a tree, retrieved from February, 15, 2012 • Microsoft Clip Art, Person chasing money, retrieved from February, 16, 2012 • United States Federal Government, Obesity Waist Circumference, retrieved from February, 16, 2012

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