A 2004 study conducted for the CDC by RTI International estimates that

“…obesity-related medical expenditures reached $75 billion in 2003." (1)  

• States finance about half of these expenditures through Medicaid and Medicare payments. 
• State payments range from $87 million in Wyoming to $7.7 billion in California.

See also: CDC Obesity and Overweight: Economic Consequences

In 2004, the World Bank estimated that approximately 12% of US health care budget was associated with obesity. (2)

A more detailed study conducted by the Lewin Group for the American Obesity Association assessed the costs of obesity related to 15 conditions known to be causally related to obesity, such as arthritis, heart disease, diabetes and certain cancers. 

• Overall, the study found that obesity is responsible for 31% of the costs associated with these illnesses.
• Costs range from a high of 50% for obstructive sleep apnea, 45% for gallstones and 42% for Type 2 diabetes to a low of 18% for low back pain, and 20% for both end stage renal disease and breast cancer. (3)

How are costs of obesity determined?

Determining the costs of a medical condition is a complex process. 

Researchers attempt to identify all costs associated with an illness, which include:

• Direct costs – such as payment for services, laboratory tests,
• Indirect costs oe costs associated with the effects of the illness, such as:
• Absenteeism and lost time from work
• Decreased productivity at work
• Reduced life expectancy
• Premature death

These estimates do not account for money spent on non-medical activities related to losing weight such as exercise equipment, gym or weight-loss program memberships or non-prescription supplements.

Additional Reading

• The association between body mass and health care expenditures. Heithoff KA, Cuffel BJ, Kennedy S, Peters J.
• Current estimates of the economic cost of obesity in the United States. Wolf AM, Colditz GA.
• Estimated economic costs of obesity to U.S. business. Thompson D, Edelsberg J, Kinsey KL, Oster G.
• Societal and personal costs of obesity. Seidell JC.
• A review of cost-of-illness studies on obesity. Kortt MA, Langley PC, Cox ER.
• A review of the economic analysis of obesity. Hughes D, McGuire A.
• Obesity, health services use, and health care costs among members of a health maintenance organization. Quesenberry CP Jr, Caan B, Jacobson A.
• Obesity and absenteeism: an epidemiologic study of 10,825 employed adults. Tucker LA, Friedman GM.
• The economic costs associated with body mass index in a workplace. Burton WN, Chen CY, Schultz AB, Edington DW.
• The costs of body mass index levels in an employed population. Burton WN, Chen CY, Schultz AB, Edington DW.

Sources

(1) Obesity Costs States Billions in Medical Expenditures, Finkelstien et al, Obesity Research, 12:18-24 (2004).

(2) Chronic Hunger and Obesity Epidemic Erode Global Progress, Worldwatch, March 4, 2004.

(3) American Obestiy Association: Costs of Obesity

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