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The Heavy Facts: Obesity Could Cost Australia $21 Billion

Health Research
Last Updated Nov 15, 2021

The Heavy Facts: Obesity Could Cost Australia $21 Billion

Treating obesity-related diseases is tipped to cost Australia $21 billion in 2025. The World Obesity Federation (WOF) figures also show the global cost of obesity will reach USD $11.2 trillion in the next eight years.

At the moment, Australia's economic burden of obesity is $9 billion.

"The annual medical costs of treating the consequences of obesity such as diabetes and heart disease is truly alarming," said Professor Ian Caterson, President of the World Obesity Federation.

Caterson added, "Continual surveillance by WOF has shown how obesity prevalence has risen dramatically over the past 10 years and with an estimated 177 million adults suffering severe obesity by 2025, it is clear that governments need to act now to reduce this burden on their national economies." 

The prevalence of obesity in Australia

Non-communicable diseases caused by obesity pose a financial burden on Australian governments. As the number of Australian adults and children suffering from obesity-related conditions increases, the impact on the country's economy is expected to worsen. According to a previous study, less than two-thirds of adults are of normal weight. A person who is considered to be normal weight must be neither overweight, underweight nor obese. 

Australia's entire population living with obesity had increased to 5.8 million in 2015. About 11.2 million people were reported to be overweight or obese in 2017.

Cost of obesity in Australia in 2017Source: Renew Bariatrics

A majority of obese adults have morbid obesity, which means their body mass index is 40 or higher. Living with morbid obesity entails sky-high medical expenditures, since it puts one at risk for a wide range of chronic conditions, including:

  • High blood pressure
  • Colon cancer
  • Ischemic heart disease
  • Metabolic diseases
  • Cardiovascular disease
  • Stroke
  • Fatty liver disease
  • Gallbladder disease
  • Endometrial cancer

How can Australia prevent obesity-related diseases?

WOF and other organisations say preventing the prevalence of obesity would save the country (and other nations) millions of dollars. Healthcare costs attributable to obesity in Australia are estimated at $5.4 billion in direct costs and $6.4 billion in indirect costs.

There are several strategies being suggested to address the burden of obesity:

  • Focus on nutrition and education
  • Focus on exercise
  • Open discussion on better obesity treatments
  • More affordable medication
  • Easier access to bariatric surgery

"Looking at bariatric surgery, it's been quite limited. The public system certainly can't cope, there are waiting times that are completely unacceptable and certainly the access there needs to be improved,” said Dr Bastian Seidel from the Royal Australian College of General Practitioners (RACGP).

Good health starts at home

To combat the prevalence of overweight and the impact of obesity, it is important to take a top-down approach, starting at home. Diet and exercise, as well as avoiding lifestyle-related risk factors, are key components in reducing the prevalence of obesity and all chronic diseases that are associated with it. By avoiding unhealthy food and engaging in more physical activities, we can lose excess weight and reduce direct healthcare costs for a preventable disease. In addition to hospital costs, obesity causes outpatient costs as well.

Unhealthy eating causes costly obesity in Australia

By watching our waist circumference and aiming for a normal weight, we not only avoid the high economic cost of obesity but also curb indirect healthcare costs, such as hospital-related absenteeism and substantial productivity losses.

As obesity in children is more of a societal problem than a family issue, which may lead to a myriad of health conditions and dire financial costs, it is the responsibility of parents, caregivers and teachers to educate students about the importance of eating a balanced diet consisting of fresh, whole foods. Various studies demonstrate that the costs of childhood obesity involve not just the treatment of the physical aspect of a child, but also their mental health. The cost of depression, anxiety, and low self-esteem is just as high as that of non-communicable diseases that affect a child's physiology.

In addition to affecting a patient's out-of-pocket expenses, the financial costs of obesity will have major economic impacts on the entire Australian population if this global burden of disease isn't addressed as soon as possible. 

Of course, the biggest shifts always start with the smallest steps. And we can all prioritise our health at home to avoid obesity and incurring medical expenditures as a result of obesity-related conditions.

A personal trainer, dietitian, or nutritionist can also help you look at ways to incorporate healthy eating and physical activity into your routine. Natural health intervention costs are considerably less than the total obesity-related costs you may potentially incur in a hospital if you disregard excess weight.

Originally published on Jul 11, 2018

FAQs About the Cost of Obesity

How much does it cost to treat obesity in Australia?

Depending on the health condition for which they are being treated, the annual cost of hospitalisation for patients with obesity may range from $2,500 to $3,263. Patients with obesity and diabetes pay more for treatment.

What is a direct cost of obesity?

Obesity-attributable costs can be direct or indirect. Expenses directly associated with hospitalisation, surgery, medications and outpatient treatment are known as direct costs. By contrast, indirect costs consist of lost work days and lowered compensation due to absenteeism.

Is obesity treatment expensive?

It should not cost much to treat obesity per se, which means getting the body back to its normal weight. But the complications of obesity can drain your finances. Diabetes, cardiovascular disease, stroke and many others are expensive to treat.

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