Obesity, excess weight cost businesses, employees more than $400 billion in 2023

Obesity and excess weight cost U.S. businesses and employees an estimated $425.5 billion last year, a new report from data and analytics company GlobalData found.

“As a nation, we are all paying a high price for obesity,” said Sally Greenberger, president of the National Consumers League. “Yet when people with obesity get treated according to medical guidelines, their health outcomes often improve, producing cost savings for employers and payers.”

Obesity is a major public health challenge with profound implications for employers, the report said. Researchers estimate that approximately 3 in 10 working adults are classified as obese and one-third meet the criteria for being overweight. Excess body weight is strongly linked to a heightened risk of chronic disease, including heart disease, type 2 diabetes, hypertension, certain cancers and other health conditions.

Furthermore, obesity has been associated with a greater susceptibility to severe influenza and COVID-19. These health problems contribute to increased health care and disability expenses; more days of work missed because of illness or injury; and diminished workforce productivity. The health consequences of obesity contribute to lower levels of employment and premature mortality, leading to a diminished labor force. For occupations that are physically demanding, the fitness challenges associated with obesity and associated morbidity can lead to a smaller recruiting pool.

The overall workplace cost comprises:

• $146.5 billion in higher medical costs to employers ($89.8 billion) and employees ($56.7 billion), associated with obesity ($115 billion) and overweight ($31.5 billion)
• $31.1 billion in higher disability payments
• $5.2 billion in higher workers compensation program costs
• $82.3 billion in higher health-related work absenteeism associated with obesity
• $160.3 billion in higher health-related presenteeism associated with obesity ($113.8 billion) and overweight ($46.5 billion)

The $6,472 annual cost per worker with obesity includes:

• $1,514 in higher medical costs
• $664 in higher disability costs
• $112 in higher injury worker compensation
• $1,755 in higher absenteeism costs
• $2,427 in higher presenteeism cost

The economic implications of obesity to employers can differ widely across industries and geographic regions. Researchers estimate that obesity rates range from a low of 22% in the professional and business services sector to a high of 38% in the mining sector. Regional variations are substantial, with obesity rates for adults ranging from a low of 24% in Washington, D.C., to a high of 41% in West Virginia.

“Considering this interplay between industry and geographical distinctions, worker demographics, wages, health care costs and other economic factors such as injury or disability risk and employee turnover, the existing research on the implications of obesity can be complex for employers to navigate when making crucial decisions regarding obesity in the workforce,” the report said.

Obesity is a serious, progressive disease and is associated with a range of other diseases, including type 2 diabetes, cardiovascular diseases and musculoskeletal disorders. Employers and workers could experience significant benefits with even small steps toward weight reduction.

“With 5% weight loss, which is achievable through lifestyle counseling that helps people improve their diet and physical activity levels, 22% of workers with obesity would no longer meet the criteria for obesity,” the report said. “With 25% weight loss, which often requires medical intervention, 78% of people with obesity could move out of obesity. Sustained weight loss of 25% for people with obesity could reduce average health care expenditures by $4,830 cumulative over five years — with estimated savings of $7,950 among workers with Class III obesity.”

Related: The realities of employer coverage for weight-loss drugs

Based on the results, GlobalData recommends actionable steps for employers — offer insurance coverage and wellness programs for obesity care at parity with other chronic diseases; implement wellness programs; foster a culture of support and inclusion that recognizes and accommodates the needs of employees with obesity; and provide education and resources to educate employees about the health risks associated with obesity as well as strategies for obesity care and weight management.

“It is important for employers to find ways to increase access to and utilization of comprehensive obesity care for their employees and their dependents,” said William H. Dietz, Ph.D., director of the STOP Obesity Alliance at George Washington University. “Employers need to provide comprehensive obesity care benefits, including behavioral therapy, bariatric surgery, anti-obesity medications and weight maintenance. These are all tools for treating and managing the chronic and relapsing disease of obesity.”

Eli Lilly, which manufactures the weight-loss drug Zepbound, supported the study.