For example, studies have shown that employees who exercise at least three times a week experience a higher level of productivity in the workplace than those who do not. That productivity may also be related to earnings opportunity as well, since men and women who work out regularly earn 6% – 10% higher incomes, respectively.
Click here to read the article “The Hidden Financial Benefits of Keeping Yourself Fit” from Time.com”.
In addition to the potential to earn more, the opposite is true: Sedentary individuals are more likely to pay out more in health care expenses than those who stay fit. For example, severely obese folks spend an average of $3,400 more a year than healthy weight people. There are savings opportunities even for those who aren’t obese, as health care costs average $4,043 for overweight individuals compared to $3,722 for healthy weight people.
Click here to read the article “Report: Severely Obese Spend Nearly Twice as Much on Health Care than Healthy Weight Individual” from MLive.com.
Even employers are motivated to influence health behaviors to save money. Obamacare provides for grants and tax incentives to employers that deploy workplace wellness programs. Some companies offer larger subsidies on health insurance premiums for employees who join a workplace initiative, while others just flat-out pay their employees to participate. This includes IBM, which pays out cash incentives to employees who meet specific fitness goals. Members of United Healthcare may be reimbursed up to $20 a month on participating gym memberships. Blue Cross Blue Shield offers a discounted $25 membership fee for members at over 8,000 gyms nationwide.
On a national scale, spending on health care is widely considered to be out of control. In fact, the money we spend on health care in the U.S. alone is enough to support the fifth-largest economy in the world.
Click here to read the article “8 Facts that Explain What’s Wrong with American Health Care” from Vox.com.
Unfortunately, we spend more on care than we actually receive, when you compare our system of care to other countries. That’s because our combination of private and public programs, a convoluted payment processing system and the deployment of medical technology and lab work administered unnecessarily adds millions to our national tab.
For example, the cost of treating a heart attack in the United States is more expensive than in other countries. That’s because each provider in the system generates a separate bill, from an emergency room doctor to a radiologist. Not only is this form of billing more expensive than bundled services, but there are substantial administrative costs associated with processing individual bills as part of an insurance claim, and the subsequent balance billing by providers to the patient. Worse yet, since we generally pay for service instead of results, many doctors are known to over prescribe in order to generate higher revenues for their practice.
When you look at health care spending from a national perspective, the value of personal fitness becomes more evident. That’s because about 50% of all health care spending is attributed to only five percent of the population. In fact, 20% of all spending is attributed to only one percent of the population. Unfortunately, there is also a correlation between health care usage/expenses and aging. Older citizens tend to have multiple chronic conditions requiring more medical attention and prescription drugs.
As the population continues to live longer, these expenses can be expected to rise. To put the comparative usage into numbers, consider that, on average, heavy users of medical care account for about $40,000 of health care spending annually, while light users spend about $236 per person each year.
If we can be of any assistance to you in helping you with your financial fitness plan please contact us at 801-990-5055.
Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing investment and insurance products. Our firm is not affiliated with the U.S. government or any governmental agency. Please visit our website to see a complete list of our services, bossretirement.com.
Advisory services offered through B.O.S.S. Retirement Advisors, a Registered Investment Advisory firm, and offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Insurance products and services offered through B.O.S.S. Retirement Solutions.
This content is provided for informational purposes only. It is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be
guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.