New Analysis Shows Weight Loss Saves Employers and Medicare Health Care Costs

Modest weight loss among adults with obesity cuts health care spending by 15%, reduces costs across comorbidities

WASHINGTON--(BUSINESS WIRE)--Obesity is quickly rising to the top of the list of chronic conditions in the U.S. with more than 40 percent of adults having obesity, with the highest prevalence seen among adults aged 40-59 years – prime working years.¹ Obesity also increases the risk of developing a host of other chronic conditions including diabetes, cardiovascular disease, and many cancers. Addressing obesity by promoting weight loss, accordingly, should reduce costs not only related to obesity but also these comorbid conditions. Recent research by Emory University Professor and Partnership to Fight Chronic Disease (PFCD) Chair Ken Thorpe published today in JAMA Network Open – Estimated Reduction in Health Care Spending Associated With Weight Loss Among Adults – highlights the potential savings resulting from modest to moderate weight loss by adults with obesity, including savings by comorbid condition, represented by reduced health care spending among U.S. adults with employer-sponsored insurance or Medicare.

Key findings from the research include:

• Economic Burden of Obesity:
  • In 2023, obesity cost employers and employees $400 billion, with health care costs accounting for less than half that total. Obesity-related higher medical costs alone added $1,514 per person.²
  • This new research shows that modest to moderate weight loss would significantly reduce those costs:
    • For individuals with employer-sponsored insurance:
      • A 5% weight loss reduced health care spending by $670 or 8% per person annually.
      • A 25% weight loss reduced spending by $2,849 annually or 34%.
      • For weight loss of 5-20%, individuals with the following comorbidities would realize the greatest reductions in annual health care spending:
        • Obesity and diabetes - $1,840-$5,821
        • Obesity and arthritis - $1,917-$6,143
        • Obesity and chronic back problems - $1,422-$4,729
    • Medicare stands to save even more:
      • A 5% weight loss reduced spending by $1,262 (7%) per person annually.
      • A 25% weight loss reduced spending by $5,442 (31%) per person annually.
• Lifestyle Intervention Implications:
  • Lifestyle programs that promote healthy eating and exercise coupled with evidence-based treatment interventions (e.g., bariatric surgery or novel weight-loss medications/GLP-1 agonists) are effective tools but may face coverage restrictions that limit access.
  • Expanding access to evidence-based treatments for obesity could yield substantial health care savings.

These findings highlight the significant potential for achievable weight loss among adults with obesity to reduce health care costs and the economic burden of disease, particularly for those living with multiple chronic conditions or high BMI levels. This is especially promising relative to last week’s proposal by the Centers for Medicare & Medicaid Services to cover anti-obesity medicines under Medicare Part D and Medicaid when used to treat obesity. If finalized, this broad new coverage would have a profound impact on the ability of Americans to access these novel medications that could significantly reduce obesity-related health care spending and improve overall health.

“We must address obesity as the disease it is by focusing on prevention and treatment that empowers people to lose weight and maintain a healthy weight while improving their health. Reducing obesity lowers costs across several chronic conditions and should be a priority focus for employers, Medicare and other payors moving forward,” urged Thorpe.

For the full research and more information on efforts to address obesity: https://www.fightchronicdisease.org/obesity.

The Partnership to Fight Chronic Disease (PFCD) is an international coalition of patient, provider, community, business and labor groups, and health policy experts, committed to raising awareness of the number one cause of death, disability, and rising health care costs: chronic disease.

¹ Emmerich SD, Fryar CD, Stierman B, Ogden CL. Obesity and severe obesity prevalence in adults: United States, August 2021–August 2023. NCHS Data Brief, no 508. Hyattsville, MD: National Center for Health Statistics. 2024. DOI: https://dx.doi.org/10.15620/cdc/159281
² EHD Insurance. Report: Obesity Cost Employers and Employees Over $400 Billion in 2023. March 11, 2024. https://ehdinsurance.com/report-obesity-cost-employers-and-employees-over-400-billion-in-2023/