OBESITY COST CALCULATOR WORKSHEET
Directions: Please use the Obesity Cost Calculator Worksheet to collect information to better approximate the costs of obesity to your organization. If you do not have some of this data for your company, the Obesity Cost Calculator will provide default values from nationally representative datasets to calculate the cost estimates. The cost of obesity must be calculated before determining your return on investment. You will need to decide the appropriate inputs for this calculation based on your budgeted costs for the intervention, anticipated participation rates, employee co-payments, annual work days missed (current and anticipated post-intervention rates), and expected weight loss of employees.
CALCULATE THE COST OF OBESITY
Step 1: Describe your company 1. Identify your type of industry: a. Multi-industry / Other b. Agriculture c. Construction d. Education and Healthcare e. Entertainment and Food Service f. Finance, Insurance and Real Estate g. Information h. Manufacturing i. Other Services j. Professional, Management and Administrative k. Services l. Public Administration m. Transportation and Utilities n. Wholesale and Retail Trade 2. Identify your state or select multi-state if appropriate. o Multi state/U.S. o State _________
Step 2: Employee’s BMI 1. Do you know your employee’s BMI scores? o If yes, provide the following data (choose a, b, c, or d): o If no, skip to question #2 (allow the cost calculator to make an estimate). a. Total number of employees Normal Overweight BMI (Body < 25 25-29 Mass Index) Total number of employees
Obese 1 30-34
Obese 2 35-39
Obese 3 40+
b. Number of employees by gender Normal Overweight Obese 1 BMI (Body < 25 25-29 30-34 Mass Index) Total Males Total Female c. Number of employees by age group Normal Overweight Obese 1 BMI (Body < 25 25-29 30-34 Mass Index) 18-44 45+
Obese 2 35-39
Obese 3 40+
Obese 2 35-39
Obese 3 40+
d. Combination of employees by gender and age group Normal Overweight Obese 1 Obese 2 BMI (Body Mass < 25 25-29 30-34 35-39 Index) Males, 18-44 Males, 45+ Females, 18-44 Females, 45+
Obese 3 40+
2. If no, the calculator provides default values from nationally representative datasets to assist with completing the cost estimates. Would you like these averages based on industry or state values? o Industry o State
Step 3: Wages and Benefits The cost of increased absenteeism and medical care due to obesity is estimated based on the wages and benefits earned by your employees. You may enter different wage information for employees that receive health and other benefits and those that do not. 1. Select the most detailed category for which you have an estimate of the percent of your employees that receive health benefits. o If yes, provide the following data (choose a, b, c or d): o If no, skip to question #2 (allow the calculator to make an estimate). a. Total number of employees % Receiving benefits Total number of employees b. Number of employees by gender % Receiving benefits Total Males Total Female c. Number of employees by age group % Receiving benefits 18-44 45+ d. Number of employees by gender and age group % Receiving benefits Males, 18-44 Males, 45+ Females, 18-44 Females, 45+
Do you know the average hourly wages of employees in your company? o If yes, provide the following data (choose e, f, g, or h): o If no, skip to question #2 (allow OCC to make an estimate). e. Total number of employees Avg. hourly wages Total number of employees f. Number of employees by gender Avg. hourly wages Total Males Total Female
g. Number of employees by age group Avg. hourly wages 18-44 45+ h. Number of employees by gender and age group Avg. hourly wages Males, 18-44 Males, 45+ Females, 18-44 Females, 45+
CALCULATE THE INTERVENTION RETURN ON INVESTMENT
To analyze the return on investment of an intervention, the OCC provides sample scenario interventions and their impact on costs. You can compare potential interventions side-by-side with the drop-box options. You will be asked to enter data for: Intervention Name Enter your own name for an example scenario (e.g. Fitness Center, Weight Management Program, or Bariatric Surgery) Participation Target Population (choose one): All overweight and obese (BMI 25 – 40+) All obese (BMI 30 – 40+) Obese I (BMI 30 – 34) Obese II (BMI 35 – 39) Obese III (BMI 40+) Normal Employees (BMI <25) Expected participation rate of target population ______% Cost Express costs (choose one): Per participant In total Estimate annual costs: Year 1 Subsequent years $_______ $_______
Intervention co-payment for employees (%of costs) _______% Annual workdays missed due to intervention (per participant) Year 1 Subsequent years _______ _______
Number of years cost incurred (1-20) ______ Annual discount rate on cost and benefits (0-8)
Effect
Express effect in terms of: Lb loss Kg loss % of body weight loss Expected weight loss (vs. baseline) from participation Year 1 _______ Subsequent years _______ Number of years weight loss _______
Descriptions Body Mass Index (BMI): If you have measured and documented each of your employees BMI answer yes to this question. If not answer No and these values will be estimated for you. Benefits Multiplier: We define an employee's total compensation as wages + benefits. A benefits multiplier is, for each employee that receives benefits, the percent of his or her total compensation that pays for those benefits (versus wages), including pay for sick days, vacation, and holidays. It is expressed by the following equation: Benefits Multiplier =(total compensation including benefits - total wages)/ (total wages) Based on Bureau of Labor Statistics data, the national estimate is 33%. If you do not have an estimate of your company's benefits multiplier, use this number. Do cumulative savings ever exceed cumulative costs? Costs and benefits begin accruing in year 1. Expected participation rate: Share of the target population likely to participate in the intervention. For example, if the target population is Obese 3, then an expected participation rate of 50% means that half of the Obese 3 individuals at the company will participate. Expected weight loss / percentage of body weight lost from intervention participation: Expected weight loss resulting from participation in the intervention can be entered either as i) average pounds (lbs) or kilograms (kgs) or ii) average percent of body weight and is allowed to vary over time. Always express weight loss as relative
Express costs: Select "Per participant" to enter into the "Annual Cost" field the average cost of implementing the intervention with each participant over one year for use in the calculations. Select "In total" to instead enter a value for the total cost of implementing the intervention with all participants. You typically want to choose "Per participant" if the intervention's costs depend heavily on the number of participants and "In total" if the costs don't tend to vary with participation level. Examples of interventions that would fall in these categories, respectively, are a one-on-one weight loss counseling program and a fitness center. Expected weight loss (vs baseline) from participation: Enter the expected number of pounds, kilograms, or percent of body weight (depending on your selection for "Effect in terms of" above) that an individual can expect to lose due to participation in the intervention. For example, if on average participants lose 5 pounds in the first year, 3 pounds in each of the next 3 years, and no more weight after that, then you should choose "lbs" for "Effect in terms of" above, then for this field 5 for Year 1 and "3" for subsequent years, and finally "4" in the "Number of years of weight loss" field below. Intervention Copayment for employees: Portion (0-100%) of the intervention cost that participants pay. The calculator uses this value to calculate the intervention costs paid by the employer, which are assumed to be equal to the remaining portion of the costs after participant co-pay. Number of years costs incurred: The number of years the costs of the intervention are incurred can range from one to 20 years. The number of years will apply to both the direct costs of the intervention to the company as well as to the work days missed. It is assumed that the company has a stable cohort of employees. Number of years of weight loss: Number of years that participants will lose weight due to participation in the intervention on average. Predicted number of participants per year: Estimated by applying the expected participation rate to the size of the target population. The size of the target population at the company is based on the prevalence estimates given in the Input Summary. Target Population: Normal = BMI<25, Overweight = BMI 25-29.9, Obese 1 = BMI 30-34.9, Obese 2 = BMI 35-39.9, Obese 3 = BMI 40+.
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