Economic Impact of Exercise
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Chronic disease affects 100 million Americans and consumes $2 our of every $3 spent on healthcare. Much of that burden can be prevented, however with simple lifestyle choices, because the primary cause is inactivity. It’s really rather simple: Exercise more and lose weight to reduce health insurance costs. A recent RAND corporation study showed the average health care costs for moderately obese people were about 20-50% higher than those for normal weight people. Many US based companies have begun wellness programs for their employees and are reaping the benefit |
The Trust for America’s Health (TFAH) concludes that an investment equivalent to $10 per person per year in a proven community based program to increase physical activity, improve nutrition and prevent smoking and other tobacco use could save Maryland more than $387,000,000 annually within 5 years. This is $5.60 for every $1 invested. |
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Reducing Weight in the WorkplaceA program to reduce weight and improve health risk factors in obese employees produces a short-term return on investment (ROI) of $1.17 per dollar spent, reports a study in the September Journal of Occupational and Environmental Medicine, official publication of the American College of Occupational and Environmental Medicine (ACOEM)
The researchers analyzed a group of 890 overweight or obese employees participating in an obesity management program called Healthyroads. The workers received coaching and other services to support their efforts to lose weight, improve eating habits, and increase physical activity.
The participants’ average age was 44; about three-fourths were female. The average body mass index (BMI), a standard measure of weight for height, was 30.6. (A BMI between 25 and 30 indicates overweight, while a BMI of 30 or higher indicates obesity.)
Over one year, the participants had reductions in seven of ten health risk factors, including poor eating habits and poor physical activity. On average, the participants lost about ten pounds, with a BMI decrease of 0.9. To assess the financial impact of the program, the researchers used a recently developed ROI model, which estimated the changes in medical costs and worker productivity resulting from reductions in health risks.
The results suggested a total projected savings of nearly US$312,000. About 60 percent of the savings resulted from reduced health care spending; the remaining 40 percent resulted from improvements in productivity The model estimated an overall ROI of $1.17 to $1.00—for each dollar spent on the obesity management program, costs decreased by $1.17. The total cost of the Healthyroads program averaged $300 per employee per year. Source:
“If one of every 20 sedentary adults in the State of Michigan became Physically active and remained active, the State could avoid costs of approximately $575 million over the next 4 years.”
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The annual cost of treating diabetes, exceeds $96 billion a year.
Colin Milner, CEO of the International Council on Active Aging, thinks people might become more physically active if they knew it could save them, on average, more than $2,200 per year in health-care costs. The problem, Milner says, is “few people are aware that what’s good for their health is good for their wealth.”
Research from the World Health Organization found that older people spend more of their income on health than any other “need” or activity. The average annual health-care cost for someone with a chronic condition is more than $6,000, five times higher than for someone without such an issue, says the Partnership for Solutions, a project of Johns Hopkins University and the Robert Wood Johnson Foundation.
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Motorola invests $6 million annually into its Wellness Initiatives program, which promotes the long-term health benefits of its employees, family members and retirees. For every $1 that Motorola invested in the program, $3.93 has been saved. Source: |
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