Childhood Obesity
Financial Consequences

The healthcare costs of those who are overweight or obese are, on average, higher than others of healthy weight. This includes out-of-pocket healthcare expenses that reduce a family’s disposable income, as well as higher monthly healthcare premiums.

Furthermore, the health care costs to society also are increased, most evident by the skyrocketing costs to federal and state governments of the Medicare and Medicaid programs.

• Annual medical costs are nearly 40% higher, or $732 per year, more for an obese person than for a person of healthy weight.



• An obese recipient of Medicare (government-funded healthcare for the elderly) costs $1,486 more per year than a person of healthy weight.



• Annually, an obese recipient of Medicaid (government-funded healthcare for the needy) costs $864 more than a person of healthy weight.



• The U.S. annual cost of obesity in 2000 was about $117 billion.



• The per capita cost of obesity to the employer is between $460 and $2,485 annually.



• The additional cost ranged from $162 for a slightly overweight male to $1,524 for a male with a body mass index (BMI) greater than 40.



• For women, the extra cost to the employer ranged from $472 to $1,302.

Personal financial toll:
Researchers have been exploring the effect of overweight and obese conditions on personal finances. Preliminary findings indicate overweight and obese conditions have a damaging effect on personal wealth.

• It has been estimated that the overweight and obese could be spending tens of thousands more each year due to their weight.



• The overweight and obese are also more likely to see a negative effect on their employment and income.
  
    - They are less likely to hold managerial positions and are more likely to miss work than those of healthy weight.
  
    - Research has indicated that overweight or obese women are more susceptible to experience a wage penalty. For women, an increase of 10% in body mass (10% increase in total weight) decreased her income by 6%.
  
    - Overweight women are less likely to be college graduates and are more likely to work in less-skilled industries.



• The impact is not limited to income – it reaches the personal life as well.
  
    - The obese spend more on out-of-pocket medical costs, diets, and items such as sturdier furniture and larger clothes than those of healthy weight.
  
    - Findings have shown that the obese are less likely to get married and are more likely to get divorced. When married, their spouses generally earn less than those of healthy weight.
  
    - They inherit less wealth from their parents, who are more likely to be overweight or obese as well.

Click here to find out how obesity is a life threat to your child and learn about obesity's health consequences.