Concern over obesity in America has grown to such an extent that the campaign to combat it now rivals the anti-smoking war that has been waged for the last decade. In much the same way that epidemiological studies linking smoking to health concerns spurred the campaign against smoking, new studies on the cost of obesity are fueling action against the obesity epidemic. The cost of the obesity epidemic is twofold: (1) it leads to a number of recognized health problems for individuals; and (2) it poses a heavy financial burden on society. Employers, in particular, are directly affected by the crisis because obesity is dramatically raising the cost of health care, decreasing employees’ productivity while at work, and causing increases in absenteeism.
When it comes to employers’ health care costs, the Thomson Reuters Workforce Wellness Index study recently reported that employers spend roughly $670 annually on total medical costs for each employee. A stunning 60% percent, or $400 of that cost is directly attributable to illnesses linked to obesity. To put this in perspective, according to the study, tobacco use only accounts for $100, or 15% of employers’ annual medical costs. Obesity is associated with a number of chronic conditions, including, but not limited to, diabetes, cardiovascular disease, asthma, certain types of cancers, and arthritis. Because the study demonstrates that “there is a dollar cost related to unhealthy behaviors,” it provides a real incentive for employers to invest in programs aimed at reducing obesity and other unhealthy behaviors.
In addition to increases in medical spending, recent studies also show that obesity both interferes with employees’ productivity while at work and impacts the time spent away from work. The term “presenteeism” is used to describe the lost productivity of employees who are at work but not performing to their full capacity. Although presenteeism is a serious consequence of an obese workforce, absenteeism is just as significant a problem for employers. The Texas Comptroller of Public Accounts recently published a study on obesity and the workforce (pdf), which estimates that nationwide absenteeism costs due to obesity amount to $4.3 billion annually.
Employers have tools at their disposal to combat employee obesity. Workplace wellness programs that provide employees with a cost incentive for maintaining a healthy lifestyle have had a positive return on investment. In a review of approximately 42 different studies looking at wellness program outcomes, the Texas Comptroller of Public Accounts concluded that these programs can ultimately reduce health care and absenteeism costs by 25 to 30% within an average of 3.6 years. The leaders of the Thomson Reuters study also suggest that employers provide health coaches and care managers for employees with chronic illnesses as a part of the wellness programs so that employees have additional resources and assistance with managing their health. Additionally, the Occupational Health & Safety Administration recommends that employers try implementing low-cost environmental changes in the workplace, such as encouraging employees to use the stairs, o including healthy alternatives in vending machines and company cafeterias. Providing information about the nutritional and calorie content of foods offered in company cafeterias is also helpful in educating employees about healthy food choices.
Ultimately, recent studies demonstrate that when employers invest in the health of their employees now, they can expect increased productivity and lower health care costs in the long run.