The numbers tell the story: obesity has moved beyond “fat jokes” to become a serious health issue in the United States. In just two decades, national obesity prevalence rates doubled, causing the U.S. Surgeon General to declare in 2001 that obesity is a national epidemic. The Centers for Disease Control and Prevention (CDC) has recently reported numbers suggesting that nationally, 33% of adult females and 31% of adult males are obese. A 2004 CDC study estimated obesity-related medical costs at $75 billion in 2003. A serious and costly health issue, obesity is closing in on tobacco use as the country’s most costly risk precursor.
Obesity is strongly linked to the prevalence of chronic medical conditions (e.g., heart disease, cancer, stroke), diminished health and quality of life, and increased health care spending. Compared to those who fall within normal weight ranges, obese patients are associated with a 36% increase in inpatient and outpatient spending and a 77% increase in medications. These numbers add up for employers, who pay higher insurance costs and more claims for obese employees. Furthermore, these numbers don’t take into account the “hidden” costs of obesity, which may include millions of lost work days, restricted activity days and an overall reduction in worker productivity.
According to a study conducted by population health management company Gordian Health Solutions, the results of which were published in the Journal of Occupational and Environmental Medicine (JOEM), there is a business case to be made for employers to take on the problems of obesity and other related lifestyle health risks. Adam Long, Ph.D., director of health management research for Gordian and author of the JOEM study, says, “If employers can reduce their healthcare cost burden by encouraging healthier lifestyles in their captive member bases, while creating a more stable, productive workforce, the case for implementing an employer-driven obesity management program is easily made.”
On Tuesday, September 18, 2007, Long will be presenting results from the JOEM study “The cost of lifestyle health risks: Obesity” at the Disease Management Leadership Forum’s Obesity Management Summit in Las Vegas, Nevada. The forum is the disease management and care coordination community's largest event, with over 1,000 attendees expected at this year’s event. Long’s presentation, titled “Quantifying the Cost of Obesity: Best Practice Management Begins with Actionable Information,” will describe Gordian’s method for quantifying the cost of lifestyle health risks, examine results specific to the costs of obesity, and discuss how employers can take this information and use it to initiate best practice health and productivity management programs for their captive members.
The results presented in the study are derived from over 60 employer clients’ healthcare claims from 24.5 million captive member months and over $4.5 billion in paid claims. Using Retrospective Claims Analyses (RCA), obesity cost results are presented by age, gender and business sector, which allows an employer to benchmark the problem and track population-based changes over time. Because Gordian’s client base is spread throughout the nation and consists of members of all ages from varying business sectors, RCA data can speak more specifically to employers’ questions (e.g, “How do our members’ obesity costs compare to others in our business sector?”).
Some of the highlights from the study include the following results:
* Obesity represents 2.5% of male and 3.0% of female total medical costs
* Male costs equal $4.59 per member per month (PMPM); female costs equal $6.98 PMPM
* The most costly business sectors were healthcare (male $4.23, female $6.94) and civic/utility (male $4.46, female $5.55)
* The least costly business sector was finance/consulting (male $2.19, female $3.68)
* Differences in business sector costs were probably driven by access to care, richness of benefit design, job activity levels, corporate culture and access to healthy options
According to Long, these analyses provide “actionable information for employers considering offering lifestyle health risk management to their members.” He says, “Employers can take this information and use it to initiate best practice health and productivity management programs for their captive members.” For employers, the obesity bottom line is measured in better employee health and productivity, as well as the lower costs that result.
For more information, visit Gordian’s website at www.gordian-health.com to view an issue brief on obesity, “Managing the Obesity Problem: A Case Study with Measurable Results.” More information on the Disease Management Leadership Forum’s Obesity Management Summit can be found online at www.dmaa.org.
About Gordian Health Solutions, Inc.
Gordian is a leading national population health management company based in Nashville, Tenn. The company offers a comprehensive suite of products and services, such as population health risk analysis, telephonic lifestyle and chronic condition coaching, online products, health education hotlines, onsite health education, and fitness center management. Gordian helps employers, health plans and government entities identify, control and manage health risk factors and their associated costs. Through targeted and tailored programs, and sophisticated informatics and reporting capabilities, Gordian works with clients to measure program progress and cost savings. For more information about Gordian, visit www.gordian-health.com.