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Employers Target Obesity
Linked Health Costs
Excerpt
By Kim Dixon, Reuters Health

CHICAGO (Reuters) - Fortune 500 companies from carmaker Ford Motor Co. to cereal producer General Mills Inc. said on Tuesday they will work together to fight an obesity epidemic in America that is hiking their costs.

Obesity shaves $12 billion from companies' budgets each year because of health-care costs, according to one estimate by the Washington Business Group on Health, an employer group that lobbies on health policy.

"There are a lot of interventions that work but we haven't focused on it," said Helen Darling, president of the lobbying group. "This is like smoking 30 years ago."

In response, Darling's group is setting up an institute to coordinate efforts across companies to identify costs and potential fixes. Health professionals, including officials from the U.S. Centers for Disease Control and Prevention, will also take part.

The group aims to coordinate companies' fat-fighting efforts, holding joint weight-management meetings for workers, setting up a Web site to disseminate best practices about what works and what doesn't and holding a "corporate summit" to address the issue.

The employers said they had been negligent about obesity and its impact for too long.

Detroit-based Ford is the second-biggest private buyer of health care in the country, having paid about $3 billion for nearly 650,000 current and former employees' care last year, an official said.

"We're in it one way or another," said Vincent Kerr, a Ford company physician involved with the new institute.

OBESE COST MORE

From prescription drug spending to hospital costs, obese individuals account for a bigger slice of a company's health-care dollar.

For example, employers spend 77 percent more on prescription drugs for the seriously overweight, Darling said.

"I think obesity is the tsunami of the future and if we don't deal with this problem, we will all be swamped by its impact," Darling said.

Obesity is a risk factor for chronic diseases like diabetes. Employers face lost productivity, higher prescription drug costs to treat chronic ailments and more hospital stays.

Excess weight is also linked to heart disease, stroke and high blood pressure.

A high-profile lawsuit against hamburger maker McDonald's Corp., blaming the company for childhood obesity, was dismissed in January, though the restaurant industry is bracing for more lawsuits.

Employers, meanwhile, are seeing health-care costs consume a greater share of employees' benefit costs.

Total U.S. health-care spending hit $1.5 trillion for 2002, comprising roughly 15 percent of the U.S. gross national product, according to data from the U.S. Centers for Medicare and Medicaid Services. The amount is expected to nearly double in the next decade.

The U.S. spends as much on these obesity-related illnesses as on conditions related to smoking, yet has neglected efforts to stem the tide, a separate report published in the journal Health Affairs, said in May.

Reference Source 89

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