Overweight Employees May Pay More For Group Health Insurance.
[8/29/07]
If you are lucky enough to be one of the shrinking numbers of Americans who have employer based group medical insurance, count your blessings. And if you want to keep those health insurance premiums low cost, count your calories. An increasing number of companies that do provide group health insurance already charge employees who smoke more for their health insurance premiums, and experts agree that charging similar surcharges for overweight employees is not far behind.
According to the Johns Hopkins Bloomberg School of Public Health by the year 2015 more than 75% or American will meet the clinical definition of “overweight.” It is expected that long before then employers will be saying “shape up or pay up” when it comes to health insurance premiums. Obesity is linked to many serious health problems including diabetes, hypertension, heart disease and stroke. Overweight employees definitely pose a greater risk and potentially higher cost for group health insurance rates to employers.
There have been several studies over the past few years that have attempted to evaluate the increased cost an obese work force can add to a companies bottom line, and the results were shall we say weighty. While exact figures have varied many surveys have estimated it is in the billions. What is not in dispute is all researchers consistently found that overweight workers were less productive, called in sick more often, and were far more likely to file disability claims.
Many firms are already charging overweight employees more for their group health insurance. Employers say the reasons are many. One, simple fairness, it is time that the non-obese stop paying for the obese. Two, to offset the additional costs of healthcare claims made by the overweight. Finally, to offer the obese a financial incentive to slim down.
It is hoped that companies that really want to see employees slim down, will find ways to make it easier to do so. And many have taken up that challenge. The companies that are inclined to charge overweight employees more for their health insurance do offer weight loss programs. Some companies are also going to lengths to make the office environment more conducive to weight loss by reducing or eliminating junk food in vending machines, and limiting office birthday parties and morning boxes of donuts.
As if paying more for health insurance was not incentive enough to put down that Krispy Crème in exchange for a celery stick, a University study suggested that obese workers are actually paid less than slim ones.
According to the Johns Hopkins Bloomberg School of Public Health by the year 2015 more than 75% or American will meet the clinical definition of “overweight.” It is expected that long before then employers will be saying “shape up or pay up” when it comes to health insurance premiums. Obesity is linked to many serious health problems including diabetes, hypertension, heart disease and stroke. Overweight employees definitely pose a greater risk and potentially higher cost for group health insurance rates to employers.
There have been several studies over the past few years that have attempted to evaluate the increased cost an obese work force can add to a companies bottom line, and the results were shall we say weighty. While exact figures have varied many surveys have estimated it is in the billions. What is not in dispute is all researchers consistently found that overweight workers were less productive, called in sick more often, and were far more likely to file disability claims.
Many firms are already charging overweight employees more for their group health insurance. Employers say the reasons are many. One, simple fairness, it is time that the non-obese stop paying for the obese. Two, to offset the additional costs of healthcare claims made by the overweight. Finally, to offer the obese a financial incentive to slim down.
It is hoped that companies that really want to see employees slim down, will find ways to make it easier to do so. And many have taken up that challenge. The companies that are inclined to charge overweight employees more for their health insurance do offer weight loss programs. Some companies are also going to lengths to make the office environment more conducive to weight loss by reducing or eliminating junk food in vending machines, and limiting office birthday parties and morning boxes of donuts.
As if paying more for health insurance was not incentive enough to put down that Krispy Crème in exchange for a celery stick, a University study suggested that obese workers are actually paid less than slim ones.
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