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What’s the Cost to Employers as Obesity Rates Increase?

What’s the Cost to Employers as Obesity Rates Increase?

Oct. 1, 2024
CDC report shows 35% of population is obese which translates to an annual cost of $6,472 per worker.

While the number of adults who are considered  obese has been increasing over the past few years, it has hit an uneasy milestone. Earlier this month the CDC reported that in 23 states that 35% of adults are considered obese.

To put this number in perspective, before 2013, not one single state had a rate of 35%.

An adult with obesity has a body mass index of 30 or higher. The CDC calls this a disease and notes that it can cause many health conditions such as asthma, heart disease, stroke, type 2 diabetes, some cancers, and severe outcomes from respiratory illnesses. In addition, the stigma and bias about a person's weight can cause social and mental health consequences, the agency notes.

The 23 states with the highest adult obesity rates (35% or higher) include: Alabama, Alaska, Arkansas, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, West Virginia, and Wisconsin. Guam and Puerto Rico also had an obesity rate of at least 35%.

"Obesity is a complex disease," said Ruth Petersen, MD, director of CDC's Division of Nutrition, Physical Activity, and Obesity, in a statement. "There's a common misconception that obesity is a result of lack of willpower and individual failings to eat well and exercise. Many factors contribute to obesity like genes, certain medications, poor sleep, gut microbiome, stress, access to affordable food, safe places to be active, and access to health care."

Costs Associated with Obesity

What is the cost of this disease to employers? A  report released in Februray 2024 Assessing the Economic Impact of Obesity and Overweight on Employers, from GlobalData, found that costs amounted to $347.5 billion attributed to obesity.

Costs include:

- $146.5 billion in higher medical costs for employees and their dependents

-- $82.3 billion in higher absenteeism (missed workdays)

-- $160.3 billion in higher presenteeism (reduced productivity due to illness)

-- $31.1 billion in higher disability costs

-- $5.2 billion in higher Workers’ Compensation Program costs.

The annual economic cost per worker with obesity is $6,472.

According to the report, the economic impact varies by industry. Per 10,000 employees, the cost to employers and employees of obesity and overweight ranges from $19.4 million in the professional & business services sector to $36.7 million in the government sector.

About the Author

Adrienne Selko | Senior Editor

Email [email protected]

LinkedIn

Adrienne Selko is also the senior editor at Material Handling and Logistics and is a former editor of IndustryWeek. 

 

 

 

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