1 The Economic Cost of Physical Inactivity in Michigan a study commissioned by The Governor’s Council on Physical Fitness, Health and Sports © 2003 Michigan.

1

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

2

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

3Physical InactivityThe Effect on Health

CVD

Obesity Cancer

Diabetes

KidneyDisease

Osteo-porosis

InjuryPrevention

ViolencePrevention

MentalHealth

Arthritis


4Physical InactivityThe Economic Cost in Michigan

Over 4 million Michigan adults are physically inactive.

Total cost of $8.9 billion in 2002.


5

Costs are borne largely by: Employers

• health insurance premiums• lost productivity

State of Michigan• Medicaid


Ultimately, Michigan residents absorb these costs.

$1,175/adult© 2003 Michigan Fitness Foundation

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Medicaid portion: $69 million


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


7


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


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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


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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.


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Financial Forecast

$8.89

$12.65

2002 2007

Cos

t of

inac

tivi

ty($

bil

lion

s)


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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.


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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


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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.”


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Michigan can’t afford to wait.

Getting 209,000 Michiganders moving is a shared responsibility.


1 The Economic Cost of Physical Inactivity in Michigan a study commissioned by The Governor’s Council on Physical Fitness, Health and Sports © 2003 Michigan.

Documents

michigan adults

michigan residents

physical fitness

indirect costs

cost avoidance

total cost breakdowns

physical education

high school