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News and Information Article
Study Shows Obesity Cost $3.55 Per Member Per Month (PMPM)
for Men and $5.71 for Women
NASHVILLE, Tenn., March 17 // -- Obesity as a major cause of
death in the U.S. may still be in dispute, but one thing is certain: it costs
American employers millions of dollars each year in higher employee health
costs.
In the wake of recent studies disputing the Centers for Disease Control
and Preventions earlier finding that obesity causes 400,000 deaths a year, a
new study published in the March Journal of Occupational and Environmental
Medicine finds obesity is responsible for 2.1 percent of all diagnosed medical
claims dollars for men and 2.8 percent for women. Of ten lifestyle health
risks considered, obesity was by far the most costly -- accounting for
approximately 14 percent of lifestyle-related health costs for men and 25
percent for women.
The study was undertaken by three researchers from Gordian Health
Solutions, Inc., the leading national provider of population health management
services headquartered in Nashville, Tenn. Authors D. Adam Long, PhD, Roger
Reed, FNP, PA, BSN, RN and Gregg Lehman, PhD used Gordians proprietary
retrospective claims analysis (RCA) process to estimate obesity costs. The
sophisticated analysis considered more than 1,600 diagnosis codes related to
10 different lifestyle health risks -- although not double-counting cost-
estimates related to multiple risks -- compared to just four to nine specific
diseases that are typically considered in epidemiologically-based cost-of-
illness studies.
"Obesity-related expenses mirror total medical expenses in their rise with
age (peaking around $12 per member per month at ages 55-64), Long said.
"However, womens obesity related costs are, on average, 161% that of mens.
Moreover, as a proportion of all lifestyle related costs, obesity costs for
women tend to spike in childbearing and menopausal years."
While employers have shown interest in national and global health care
costs and drivers of health care costs, understanding their own health care
costs as it relates to the "the national cost of obesity" has not been as
easy.
The study, for the first time, benchmarked obesity related expenses by
business sector and by age and gender, providing hard data for making the case
for population health management initiatives with their captive
employee/member bases.
"Employers want information they can use and take action on. They also
want to understand how they compare to their peers in their own market
segments. This paper for the first time addresses those concerns -- it brings
evaluation of the cost of obesity down to the employer sector level," Reed
said.
The ability to gather data is important to employers, but historically
they have not been able to look at data which shows, for example, that the
highest obesity-related costs from employees and their dependants are in the
health care sector, while the lowest are in the finance/consulting sector.
"This study brings the problem of obesity straight to employers, who
shoulder most of the cost for the nations high rate of obesity," Long said.
"It clearly underscores the need for weight management programs as a cost-
saving step within employer health benefit plans."
The researchers analyzed five years worth of data from 61 employer health
plans to estimate diagnosed claims-level medical costs attributable to
obesity. The new study is first in a planned series on the costs associated
with lifestyle-related health risk factors.
When total costs to the health plan were analyzed, obesity cost $3.55 per
member per month (PMPM) for men and $5.71 for women. Since these figures did
not include all prescription drug costs, the true PMPM cost was likely even
higher.
"These cost estimates are conservative, yet still represent millions that
could be saved every year in employer health costs," John Shull, chief
executive officer of Gordian Health Solutions said. "Employers looking for
relief from increasing medical costs should engage in population health
management services now to address changes that could help employees avoid
chronic disease and the obesity-related costs."
About Gordian Health Solutions, Inc.
Gordian is a national population health management company based in
Nashville, Tennessee. The company offers a comprehensive suite of products
and services such as population health risk analysis, telephonic counseling,
online products, health education hotlines, on-site health education/fitness
center management and lifestyle and disease management programs. Gordian
works with employers, health plans and hospitals to identify, control and
manage health risk factors and their associated costs. Through targeted and
tailored programs, and sophisticated tracking, monitoring and reporting
capabilities, Gordian works with clients to measure program progress and cost
savings. For more information about Gordian Heath Solutions, visit
http://www.gordian-health.com.
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