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The economic cost of obesity in health insurance premiums

MedSave Admin | July 18, 2008

This stanford Univeristy and Rand Corporation aticle argues for the use of weight-rated health insurance plremims. Without such, economic incentives, the costs of obesity spread over the entire insured population will continue to grow unchecked. The current cost of obesity is $150 per person per year. This translates to about $15 per month in health insurance premium for every man, woman and child covered by any health insurance plan!

http://www.ers.usda.gov/publications/efan04004/efan04004g.pdf

Some health insurance plans charge higher premium for overweight members, amounting to about 40% increase, to cover the added risk of these members. Over a lifetime, an overweight member is likely to have substantially higher health care costs than other members.

Fortunately, most people have a choice in selecting from a health plan that charges based on weight, and plans that do not. See Health Insurance for Overweight Applicants.

Tags : overweight, obesity

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