Economic Cost Of Obesity In Australia

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Overweight and obesity in Australia has risen at an alarming rate over the last 20 years as in other industrialized countries around the world, yet the policy response, locally and globally, has been limited. The paper assess the economic cost of obesity in Australia and provide findings that explains the direct and indirect cost associated with obesity; why is obesity becoming a growing concern; and how intervention programs aims to address obesity. Furthermore, statistical evidence provided claims the rising cost of obesity that are significant to health risk affect both economical and social levels. The objective of this paper examines the persuasive text about the economic cost of obesity in Australia and provides commentary explanation…show more content…
The direct costs are associated with four main medical conditions such as cardiovascular disease, type 2 diabetes, osteoarthritis and some specific forms of cancer. In 2008/2009, the direct health costs associated with obesity-related medical conditions were determined to be $1.3 billion. The direct costs of obesity are identified as medical costs and treating the obesity-related conditions are borne by governments, private health insurers and individuals. The indirect costs are associated with the productivity losses that occur due to obesity. This is measured in terms of the impact of being absent (absenteeism) from work or being less productive at work that a healthy person (presenteeism), and loss of productivity due to premature mortality caused by obesity. The indirect costs are associated with productivity losses (both absenteeism and presenteeism) and premature mortality is estimated to be $6.4 billion in 2008/2009. In addition to the costs of obesity related to healthcare, productivity and premature death, the burden of disease costs associated with obesity were estimated to be approximately $30 billion in 2008/2009. Notably, this is significantly larger than the other costs presented above and are important to consider, as this estimate captures not only the financial but also the social costs of obesity. Absenteeism was found to be 14 percent higher is obese employees compared with normal-weight employees in the working population. These costs have an economic impact on the Australian economy through productivity losses resulting in lower output. Medical conditions associated with obesity lead to social costs for individuals and families in the economy. This is created through reduced quality of life and shorter life

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