1 the economic cost of physical inactivity in michigan a study commissioned by the governor’s...
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The Economic Cost of Physical Inactivity in Michigan
a study commissioned byThe Governor’s Council on Physical Fitness, Health and Sports
© 2003 Michigan Fitness Foundation
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Partners Michigan Governor’s Council on Physical Fitness, Health, and Sports
National Governor’s Association Center for Best Practices
Michigan Department of Community Health
Michigan Health and Hospital Association
Michigan State University Extension Family and Consumer Sciences
Michigan State Medical Society
Michigan Association for Health, Physical Education, Rec., & Dance
American Cancer Society
Michigan Department of Education
American Heart Association © 2003 Michigan Fitness Foundation
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3Physical InactivityThe Effect on Health
CVD
Obesity Cancer
Diabetes
KidneyDisease
Osteo-porosis
InjuryPrevention
ViolencePrevention
MentalHealth
Arthritis
© 2003 Michigan Fitness Foundation
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4Physical InactivityThe Economic Cost in Michigan
Over 4 million Michigan adults are physically inactive.
Total cost of $8.9 billion in 2002.
© 2003 Michigan Fitness Foundation
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Costs are borne largely by: Employers
• health insurance premiums• lost productivity
State of Michigan• Medicaid
Total cost of $8.9 billion in 2002.
Ultimately, Michigan residents absorb these costs.
$1,175/adult© 2003 Michigan Fitness Foundation
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Medicaid portion: $69 million
Total cost of $8.9 billion in 2002.
Could fund a school nurse in every public middle and high
school
Could restore all chronic disease prevention programs
with dollars left for new physical activity programming
© 2003 Michigan Fitness Foundation
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Total cost of $8.9 billion in 2002.
Cost CategoryDirect Costs (in $millions)
Indirect Costs (in $millions)
Sub-totals (in $millions)
Medical care $57.84 $173.53 $231.37 [Medicaid portion] [$17.25] [$51.75] [$69.00]Workers' compensation $7.97 $31.89 $39.86Lost productivity $8,621.85 $0.00 $8,621.85Sub-totals $8,687.66 $205.42Total (direct and indirect in $millions) $8,893.08
Total Cost Breakdowns
© 2003 Michigan Fitness Foundation
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Medical Care Costs
Medical Condition
Physical Inactivity Costs (in $ millions)
Total Costs (in $ millions)
Physical Inactivity as
Percent of Total
Circulatory Disorders $13.56 $193.66 7.0%Cancer $13.02 $91.78 14.2%Endocrine/Metabolic/Nutritional $15.10 $87.42 17.3%Mental Health Disorders $1.13 $11.56 9.8%Musculoskeletal Disorders $7.99 $191.85 4.2%Neurological Disorders $7.04 $76.57 9.2%Total $57.84 $652.84 8.9%
Direct costs: $58 million
Indirect costs: $174 million© 2003 Michigan Fitness Foundation
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Workers’ Compensation Costs
Direct costs: $8 million
Indirect costs: $32 million
Largely related to musculoskeletal conditions
© 2003 Michigan Fitness Foundation
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Lost Productivity Costs
Direct costs: $8.7 billion
Indirect costs: $0 million
Costs arise from:AbsenteeismPresenteeismShort-term disabilityOn-the-job injuries
Physical inactivity results in the loss of 162 productive hours (~20
days) per worker.
© 2003 Michigan Fitness Foundation
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Financial Forecast
$8.89
$12.65
2002 2007
Cos
t of
inac
tivi
ty($
bil
lion
s)
© 2003 Michigan Fitness Foundation
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Cost Avoidance
If 1 in 20 sedentary adults become active . . .© 2003 Michigan Fitness Foundation
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Cost Avoidance
. . . A cost avoidance of ~$575 million per year over the next 5 years can be realized.
This equates to jobs for over 15,400 new employees.
© 2003 Michigan Fitness Foundation
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“Just looking at Medicaid expenditures alone, this study estimates that physically inactive lifestyles costs the State of Michigan an estimated $69 million. When you consider this is roughly equal to the cost of putting a school nurse in every public middle and high school in the State of Michigan, you can easily understand how crucial it is to work together to improve the health of our citizens.”
Janet OlszewskiDirector of the Michigan Department of Community Health
© 2003 Michigan Fitness Foundation
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“When I appointed the first-ever Surgeon General for the state, I made it clear that improving the health of the citizens of Michigan was a priority for my administration. This study clearly demonstrates how much physical inactivity costs the state financially and we know the toll it takes on families in the form of illness and preventable deaths.”
© 2003 Michigan Fitness Foundation
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Michigan can’t afford to wait.
Getting 209,000 Michiganders moving is a shared responsibility.
© 2003 Michigan Fitness Foundation