Illinois faces high economic costs of $17.6 billion due to obesity, according to analysts at GlobalData. This is equivalent to 1.7 percent of the state’s gross domestic product (GDP).
GlobalData’s report: ‘Obesity’s Impact on Illinois’ Economy and Labor Force,’ analyses the economic and workforce implications of obesity throughout the State of Illinois, 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 Illinois, approximately one-third of adults are classified as having obesity (33.4 percent), and another third have overweight (33.9 percent) in 2022. This disease not only contributes to an increase in healthcare spending and premature death but also has a detrimental effect on labour force participation and productivity.
There are multiple reasons for obesity, ranging from genetics to social-cultural issues and to the pervading bad influence of advertising.
Estimates of the economic impact of obesity on Illinois include:
- 145,900 fewer adults in the workforce due to obesity-related unemployment and premature death.
- Nearly $1.6 billion higher costs to employers for health-related absenteeism and disability.
- Plus 9 percent lower earnings for women with obesity compared to women with a healthy weight.
To meet such challenges, employers in Illinois paid an extra $2.1 billion in higher medical expenditures for health complications attributed to obesity and overweight. Households with private insurance incurred $1.2 billion in higher costs.
Medicaid costs to the state were higher by $661 million (equivalent to 6.7 percent of the state’s Medicaid spending). The federal government also spent an estimated $3.7 billion more on Medicare and Medicaid for Illinois residents.
Obesity and overweight have a detrimental impact on the state’s budget, estimated at $2.4 billion in 2022, which is equivalent to 3.6 percent of fiscal year revenues. State tax revenues were lower by nearly $1.4 billion (2.1 percent) due to reduced economic activity, while state costs for Medicaid, public assistance, and state government health insurance increased by over $1 billion.
The report also notes that achieving and maintaining weight loss of 5% to 25% among Illinois’ non-Medicare adult population with obesity could produce substantial medical savings, ranging from $7 billion to $22 billion over the next 10 years.
The report has recommended actionable steps for state policymakers and employers, including expanding Medicaid.
