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ISSUE ALERT
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Orszag Testifies that Obesity is a Major Driver of
Rising U.S. Healthcare Costs
On June 21st, in testimony to the Senate Budget Committee,
Congressional Budget Office Director, Peter Orszag, testified that a key
contributor to rising U.S. health care costs is the increasing rate of
obesity in this nation.
According to a 2001 study cited by Orszag, obese Americans incurred
37 percent higher medical costs than Americans of "normal" weight - for a
difference of about $1,000 per person per year. The increased
occurrence of obesity between 1987 and 2001, he said, accounted for 12
percent of the overall growth in real medical spending per capita in that
period. For Medicare, the share of spending attributable to obese
enrollees increased from about 9 percent in 1987 to about 25 percent in
2002, a substantially larger increase than was seen in the obesity rate
for the U.S. Medicare population as a whole.
Despite a lack of comprehensive cost-effectiveness data on the
value of preventive treatments, Orszag expressed concern over the lack of
preventive measures to avert the onset of chronic diseases, particularly
obesity. Orszag also emphasized the value of behavioral change, and
specifically noted the importance of improved diet and exercise
regimes.
Orszag identified three basic policy options for addressing
prevention and healthy living to lower obesity. The first would
focus on the dissemination of information regarding the affects of
unhealthy behavior or the factors contributing to unhealthy
behavior. Another approach would provide financial incentives to
promote healthy lifestyles through taxes, subsidies, or various other
forms. The third approach included regulatory steps, which he said
might include regulating the content of school meals. To view Dr.
Orszag's complete testimony, click here.
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