[syadasti]

http://www.nber.org/papers/w16467

This paper is the first to use the method of instrumental variables (IV) to estimate the impact of obesity on medical costs in order to address the endogeneity of weight and to reduce the bias from reporting error in weight. Models are estimated using data from the Medical Expenditure Panel Survey for 2000-2005. The IV model, which exploits genetic variation in weight as a natural experiment, yields estimates of the impact of obesity on medical costs that are considerably higher than the correlations reported in the previous literature. For example, obesity is associated with $676 higher annual medical care costs, but the IV results indicate that obesity raises annual medical costs by $2,826 (in 2005 dollars). The estimated annual cost of treating obesity in the U.S. adult non-institutionalized population is $168.4 billion or 16.5% of national spending on medical care. These results imply that the previous literature has underestimated the medical costs of obesity, resulting in underestimates of the cost effectiveness of anti-obesity interventions and the economic rationale for government intervention to reduce obesity-related externalities.

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/15/AR2010101505178.html

Study: Obesity care costs twice previous estimates
By MIKE STOBBE
The Associated Press
Friday, October 15, 2010; 6:29 PM

ATLANTA -- Nearly 17 percent of U.S. medical costs can be blamed on obesity, according to new research that suggests the nation's weight problem may be having close to twice the impact on medical spending as previously estimated.

One expert acknowledged that past estimates likely low-balled the costs and said the new study - which places obesity-related medical costs at around $168 billion - probably is closer to the truth.

"I think these are the most recent and perhaps statistically sound estimates that have come out to date," said Kenneth Thorpe, a health policy researcher at Emory University who has focused on the cost of health care.

The new research was done by John Cawley of Cornell University and Chad Meyerhoefer of Lehigh University. It was released this week by the National Bureau of Economic Research, a nonprofit, nonpartisan research organization.

An influential recent study released last year - which has been cited by federal health officials - estimated that obesity-related medical costs have reached $147 billion, or about 9 percent of total medical costs.

The earlier study also estimated that obesity adds about $1,400 to a person's annual medical bills. The new study suggests the added cost is double that, exceeding $2,800.

Cawley and Meyerhoefer used a data base that other obesity researchers have used - a federal survey of U.S. citizens and their doctors and other medical providers, which is considered the most complete information on the cost and use of health care in the country.

The new study looked at the data base's information on nearly 24,000 non-elderly adult patients from the years 2000 through 2005. Results were reported in 2005 dollars.

Why did Cawley and Meyerhoefer come up with larger estimates?

- Past studies have relied just on self-reported weight, and many people understate their actual weight. The new research made statistical adjustments to come up with what are believed to be truer figures.

- The authors tried to better establish that excess weight was a cause for the medical costs. Previous studies stopped short of saying obesity caused the costs because there was too great a chance other factors could be responsible. Cawley and Meyerhoefer tried to overcome that problem by also looking at the weight of study subjects' relatives to determine if obesity ran in the family. If so, they labeled the medical costs of a fat person in that family to be caused by obesity.

The two researchers at first were a bit surprised by how large their estimates were, but obesity is clearly a major burden on society, said Cawley, an associate professor of policy analysis and management.

"It's hard to find conditions that aren't worsened or made more expensive by obesity," he said.

Thorpe said the new estimates highlight a need to invest more in obesity-fighting programs.

---

Online:

CDC report: http://www.nber.org/papers/w16467

 

[Pesqueeb]

I'm actually supprised its not more than that. Anecdotaly, the 650+ pounder we have here at work has got to constitute more than 17% of our office health care cost as often as he's in an out of the doctor/hospital, plus the suitcase full of drugs he carts around.

 

[valve bouncer]

You know this is a cultural problem that affects other English speaking countries too. I call it "I need room for all my crap" syndrome. Basically the theory is that price being equal on any two goods, the bigger one is automatically better and manifests itself most obviously in housing. A 2500 square foot house must, must be better than a 1500 square foot one because it's bigger. A hamburger with 3 patties must be more delicious than one with 2. People don't even think about this anymore, it just is.
But actually you don't need so much space for all your sh*t whether it be room to park your cars or room to park your arse.

 

[syadasti]

You know this is a cultural problem that affects other English speaking countries too.

...

A hamburger with 3 patties must be more delicious than one with 2. People don't even think about this anymore, it just is.

How do you explain the trend in the mid to high-end dining - especially new restaurants/chefs - were the actual portions are smaller and the rapid growth of tapas bar style dining in even in America? Its not mainstream for the average person but its still trendy even with people with too much crap

 

[Toshi]

You know this is a cultural problem that affects other English speaking countries too. I call it "I need to room for all my crap" syndrome. Basically the theory is that price being equal on any two goods, the bigger one is automatically better and manifests itself most obviously in housing. A 2500 square foot house must, must be better than a 1500 square foot one because it's bigger. A hamburger with 3 patties must be more delicious than one with 2. People don't even think about this anymore, it just is.
But actually you don't need so much space for all your sh*t whether it be room to park your cars or room to park your arse.

Yup. See the insane number of self-service storage places around America. With how big our houses and garages are there's no justification for this other than we're a nation of hoarders of cheap crap.

 

[AngryMetalsmith]

You know this is a cultural problem that affects other English speaking countries too. I call it "I need to room for all my crap" syndrome. Basically the theory is that price being equal on any two goods, the bigger one is automatically better and manifests itself most obviously in housing. A 2500 square foot house must, must be better than a 1500 square foot one because it's bigger. A hamburger with 3 patties must be more delicious than one with 2. People don't even think about this anymore, it just is.
But actually you don't need so much space for all your sh*t whether it be room to park your cars or room to park your arse.

That's the Walmart effect. The sheeple are encouraged to buy in bulk under the guise of saving money. In turn they need a bigger house to store their cheap imported crap. They start getting fat from the massive amount of money saving, bulk, processed foods and need a bigger vehicle. Again they are encouraged, by tax deductions for trucks over a certain weight to buy a giant gas guzzling SUVs.

 

[AngryMetalsmith]

How do you explain the trend in the mid to high-end dining - especially new restaurants/chefs - were the actual portions are smaller and the rapid growth of tapas bar style dining in even in America? Its not mainstream for the average person but its still trendy even with people with too much crap

I don't see the correlation there. Fine dining with smaller portions is more about the experience. It's completely different from the buffet style feed bag model.

 

[syadasti]

I don't see the correlation there. Fine dining with smaller portions is more about the experience. It's completely different from the buffet style feed bag model.

Its a different model but its become almost mainstream now which is a nice change.

The middle class and especially the upper class have more crap/waste more resources than the average person by far. They do like to act like they are doing more though like buying even more new crap to seem green. Its good to strive for the ideal/change but truthfully you don't save resources this way.

 

[KavuRider]

Yup. See the insane number of self-service storage places around America. With how big our houses and garages are there's no justification for this other than we're a nation of hoarders of cheap crap.

So very true...
I hate clutter. Drives me insane.
If I have something that does not get used often, it goes away.

 

[stevew]

guilt is awesome.

 

[dante]

Can we deport them instead of the illegals? They're obviously costing the rest of us more.....

 

[stevew]

Can we deport them instead of the illegals? They're obviously costing the rest of us more.....

deport fat minorities?

you don't have balls big enough for that.

 

[jonKranked]

lets put the fatties to work in the Chinese rare earth mineral mines

 

[dante]

deport fat minorities?

you don't have balls big enough for that.

Throwing the right-wing a bone in the hopes of getting their support?

 

[ohio]

Can we deport them instead of the illegals?

If we don't do it quickly, they'll soon be a voting majority

 

[dante]

If we don't do it quickly, they'll soon be a voting majority

That'll be catastrophic... They'll be clamoring for food subsidies for corn-based sugars and screaming about any tax increases on soda or fast food.

 

[Pesqueeb]

That'll be catastrophic... They'll be clamoring for food subsidies for corn-based sugars and screaming about any tax increases on soda or fast food.

 

[stevew]

Throwing the right-wing a bone in the hopes of getting their support?

who...you?

i have no problem with fat people.

 

[dante]

who...you?

i have no problem with fat people.

Yeah, but if the bill had the effect of deporting minorities at a higher rate than whites, Rush would be all over it like a fat kid on Oxycontin.

 

[ire]

We should stop our massive food subsidies. Food should be a larger portion of our income. Instead food is dirt cheap and the average American doesn't understand that french fries aren't a health food...that's how they get their vegetables!

 

[jonKranked]

i see a problem with an excellent solution:

http://www.wired.com/magazine/2010/10/ff_futureofbreasts/

tl;dr: stem cells from fat tissue can be used for breast augmentation (boob jobs). So instead of a nation of fatties, we could have a nation of women with great cans

 

[Pesqueeb]

i see a problem with an excellent solution:

http://www.wired.com/magazine/2010/10/ff_futureofbreasts/

tl;dr: stem cells from fat tissue can be used for breast augmentation (boob jobs). So instead of a nation of fatties, we could have a nation of women with great cans

Win/win. I approve.

 

[JohnE]

Now Obama is saying they cant be fat...its their Gawd given right under the Constitution to be fat! You can have my tub of gravy when you pry my cold dead fingers from around it!