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The Lifetime Medical Cost Burden of Overweight and Obesity: Implications for Obesity Prevention
Author(s) -
Finkelstein Eric A.,
Trogdon Justin G.,
Brown Derek S.,
Allaire Benjamin T.,
Dellea Pam S.,
KamalBahl Sachin J.
Publication year - 2008
Publication title -
obesity
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.438
H-Index - 199
eISSN - 1930-739X
pISSN - 1930-7381
DOI - 10.1038/oby.2008.290
Subject(s) - overweight , obesity , medicine , incentive , gerontology , medical costs , environmental health , body mass index , endocrinology , health care , economic growth , economics , microeconomics
This study quantifies age‐specific and lifetime costs for overweight (BMI: 25–29.9), obese I (BMI: 30–34.9), and obese II/III (BMI: >35) adults separately by race/gender strata. We use these results to demonstrate why private sector firms are likely to underinvest in obesity prevention efforts. Not only does the existence of Medicare reduce the economic burden that obesity imposes on private payers, but, from the perspective of a 20‐year‐old obese adult, the short‐term costs of obesity are small. This suggests that legislation that subsidizes wellness programs and/or mandates coverage for obesity treatments might make all firms better off. Ironically, Medicare has a greater incentive to prevent obesity because when an obese 65 year old enters the program, his/her costs are immediate and higher than costs for normal weight individuals.