Florida Faces Staggering Economic Costs of $30.1 Billion Due to Obesity, Reveals GlobalData
14 August 2024 - 1:00PM
Business Wire
Obesity and overweight are estimated to have caused a staggering
$30.1 billion reduction in Florida economy in 2022, equivalent to
2.2% of the state's gross domestic product, according to a report
released by GlobalData Plc, a leading data and analytics
company.
GlobalData’s report, ‘Obesity’s Impact on Florida's Economy
and Labor Force,’ analyzes the economic and workforce
implications of obesity in the State of Florida, as well as the
impact on state tax revenue collections and costs. Obesity is a
serious, progressive disease and is associated with a range of
other diseases, including type 2 diabetes, cardiovascular diseases,
and musculoskeletal disorders. In Florida, approximately one-third
of adults are classified as having obesity (31.6%), and another
third have overweight (34.5%) in 2022. This disease not only
contributes to an increase in healthcare spending and premature
death but also has a detrimental effect on labor force
participation and productivity.
Estimates of the economic impact of obesity on Florida include:
253,100 fewer adults in the workforce due to obesity-related
unemployment and premature death; $2.8 billion higher costs to
employers for health-related absenteeism and disability; and 9%
lower earnings for women with obesity compared to women with a
healthy weight.
Employers in Florida paid an extra $3.5 billion in higher
medical expenditures for health complications attributed to obesity
and overweight. Households with private insurance incurred $2
billion in higher costs. Medicaid costs to the state were higher by
over $646 million (equivalent to 7.2% of the state's Medicaid
spending). The federal government also spent an estimated $6.7
billion more on Medicare and Medicaid for Florida residents.
Obesity and overweight have a detrimental impact on the state's
budget, estimated at $2.15 billion in 2022 which is equivalent to
4.0% of fiscal year revenues. State tax revenues were lower by $950
million (1.8%) due to reduced economic activity, while state costs
for Medicaid, public assistance, and state government health
insurance increased by $1.2 billion.
The report also notes that achieving and maintaining weight loss
of 5% to 25% among the Florida non-Medicare adult population with
obesity could produce substantial medical savings, ranging from $16
billion to $39.3 billion over the next 10 years.
"Obesity in Florida carries a tremendous personal and social
cost, impacting not only the health of individuals but also
straining our healthcare system and economy,” says Dr. Pamela Romos
Rama, MD, a Jacksonville-based cardiologist. “Effective treatment
and proactive prevention efforts are essential to curbing this
epidemic. By addressing obesity head-on, we can improve the quality
of life for Floridians and reduce the significant economic burden
it imposes on our state."
Considering the analysis, GlobalData has recommended actionable
steps for state policymakers and employers:
State policymakers can (1) advocate for state employee health
insurance to cover comprehensive, evidence-based obesity
treatments, including intensive behavioral counseling, nutrition
support, pharmacotherapy, and metabolic/bariatric surgery; (2)
expand Medicaid coverage for obesity treatment; and (3) invest in
community-based programs and education campaigns.
Employers can (1) offer insurance coverage and wellness programs
for obesity care at parity with other chronic diseases; (2) foster
a culture of support and inclusion that recognizes and accommodates
the needs of employees with obesity; and (3) provide education and
resources to employees to educate them about the health risks
associated with obesity as well as strategies for obesity care and
weight management.
GlobalData's report serves as a wakeup call to address the
obesity crisis head-on, with the potential to alleviate the
economic burden on Florida and foster a healthier and more
prosperous future for its residents and employers.
The study was supported by Eli Lilly and Company.
ENDS
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Notes to Editors
- Quote provided by Dr. Pamela Romos Rama, MD, FACC
- Access the report and infographic.
- When incorporating images or videos into news articles, we
kindly request that media outlets exercise sensitivity in their
portrayal of individuals with obesity. The Obesity Action
Coalition’s Stop Obesity Weight Bias Campaign includes media
guidelines and bias-free image gallery.
About GlobalData
4,000 of the world’s largest companies, including over 70% of
FTSE 100 and 60% of Fortune 100 companies, make more timely and
better business decisions thanks to GlobalData’s unique data,
expert analysis and innovative solutions, all in one platform.
GlobalData’s mission is to help our clients decode the future to be
more successful and innovative across a range of industries,
including the healthcare, consumer, retail, financial, technology
and professional services sectors.
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