Anthem BCBS Press Conference: Cost of Excess Weight

Press Release
Westbrook, Maine
2007 May 23


A study sponsored by the largest health insurer and largest health system in Maine indicates that physical inactivity and excess weight are costing Maine’s economy a conservatively estimated $2.56 billion in avoidable medical and workers’ compensation costs and lost productivity each year.

The study, sponsored by Anthem Blue Cross and Blue Shield and MaineHealth, quantifies the economic costs of inactivity and excess weight for Maine, in addition to the already well-documented cost in lives lost and diminished quality of life. The study by Dr. David Chenoweth of Chenoweth & Associates, a North Carolina-based econometrics consulting firm, quantified the cost of three important risk factors – physical inactivity, overweight and obesity – on three major cost components – medical care, workers’ compensation, and lost productivity.


Like Dr. Chenoweth’s studies in seven other states, the cost of these three risk factors in Maine is staggering and warrant immediate attention and corrective action. “Our lifestyle is taking a tremendous toll on our health and economic well-being in Maine,” said Erin Hoeflinger, President, anthem blue cross and Blue Shield.


“We knew intuitively that a less active life coupled with weight gain can lead to health problems later in life but this study shows the problem is here and the impact is harming Maine’s competitiveness today.” According to the report, the costs mainly impact employers in the form of more expensive health insurance and lost productivity. Direct and indirect costs of the risk factor physical inactivity totaled $1.289 billion, while risk factors for overweight and obesity totaled $414 million and $863 million, respectively.


Lost productivity (absenteeism, presenteeism, short term disability, and on-the-job injury) in direct and indirect costs totaled $2.09 billion annually based on 2004 data. The study suggests that without changes in lifestyle, the costs are likely to get worse.


Unless current trends towards increased weight and less physical activity are slowed or reversed, the total impact on Maine’s economy will rise to $3.10 billion in 2009, a cumulative 5-year increase of more than 21%. “We already knew that this epidemic had a big impact on healthcare costs,” says Bill Caron, president of MaineHealth. “This study adds up all the financial impacts, and the bottom line is chilling.


MaineHealth is working hard on the problem, but we need the help of every person and every organization to address it effectively.” The bulk of the cost of this epidemic is borne directly by employers and taxpayers, but it affects everyone.


In fact, the report divides the annual cost by the number of Maine residents, giving a per-person per year cost of nearly $2,000. Greg Otterbein, President of SYSCO Food Services of Northern New England hosted the press conference to emphasize the importance of businesses to implement workplace wellness. SYSCO employees completed a walking trail earlier this month as a means to encourage their fellow employees to walk during breaks and at lunch.


“This study’s findings underscore the need for every employer to include wellness activities in their overall strategy to contain health care costs and improve employees’ health.”

The report says that nearly 47 percent of Maine adults are physically inactive, 43.9 percent are overweight and almost 30% of Maine adults are obese according to statistics from the U.S. Centers for Disease Control and Prevention. The good news is that if just 5 percent of inactive Maine adults took a brisk 20 minute walk five times per week, the savings to Maine’s economy would total more than $150 million a year or $750 million over five years. “If there is a single message to take from this study, it is that the strength of Maine’s economy will depend, in part, on Maine people becoming physically more active,” said Hoeflinger.

Hoeflinger, Caron and Otterbein noted that both the State of Maine and the private sector are calling attention to the importance of Maine people to include more physical activity in their daily lives. Maine’s “Be Fit for Maine’s Future” campaign as outlined in the State Health Plan is an important part of this effort. Workplace wellness programs are becoming increasingly common in businesses throughout the state.


Anthem has hosted a series of statewide conferences on wellness, including an upcoming conference on May 31 on the role of communities in encouraging physical activity and a healthy diet in Maine children and adults.