UnumProvident Report Shows Tenfold Increase in Obesity-Related Disability Claims

February 17, 2004
              Annual Healthcare Costs Average $51,000 Per Person

CHATTANOOGA, Tenn., Feb. 17 /PRNewswire-FirstCall/ -- The number of obesity-related disability claims are on the rise, according to a recent report by UnumProvident Corporation (NYSE: UNM), the nation's largest provider of disability income protection insurance. Further, individuals filing claims related to obesity have significantly higher medical costs, averaging more than $51,000 per claimant per year.

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Short-term disability claims attributed to obesity have increased tenfold over the past decade, based on research using UnumProvident's disability database -- the largest such private database in the world. Obesity accounts for nearly 4,000 of UnumProvident's annual short-term disability claims, and is often present as a co-morbidity factor in long term disability claims.

"The prevalence of obesity in the U.S. has increased 74 percent since 1991,(1) and this increased incidence of obesity has had an impact in the workplace," said Robert Anfield, MD, vice president and medical director for UnumProvident.

Obesity Impact

Direct healthcare costs attributable to obesity are now estimated to be $70 billion, roughly seven percent of total U.S. healthcare costs.(2) Employers lose more than $12 billion per year due to the consequences of obesity including increased healthcare utilization, lower productivity, increased absenteeism and elevated health and disability premiums.(3)

According to the UnumProvident study, obesity-related disabilities cost employers an average of $8,720 per employee every year. The average annual direct medical cost associated with obesity alone is approximately 3.5 times the annual disability cost of $30,567. Direct costs combined with co-morbid medical costs, where obesity is a contributing factor, lead to a total healthcare cost average of $51,023 per claimant per year.

Worksite Strategies for Prevention and Management of Obesity

Obesity is a growing epidemic in the U.S. There are many factors that may contribute to its development, including genetics, metabolic makeup, eating habits, lifestyle and medication use. Although obesity is rarely curable, it can be effectively treated. Even a relatively small reduction in weight can reap significant benefits; a five-to-10 percent weight loss can reduce associated health risks.(4) Unfortunately, while half the patients seen by primary care physicians would benefit from weight management, such treatment is not routinely offered.(5)

According to Dr. Anfield, worksite programs can augment public health approaches for the prevention and treatment of obesity as large numbers of people can be reached at relatively low cost. Successful programs typically require shared worker-management participation and accountability for planning and implementation, consultation on work-site changes and targeting health behavior change.(6) Interactive interventions requiring the participant's longer commitment (e.g., personal health risk assessment tools, nutrition counseling, personal physical activity programs, custom websites, professional hotlines, etc.) are more effective than passive or onetime activities (e.g., pamphlets, newsletters, health fairs).(7)

Through its Comparative Reporting & Analysis (CR&A) services, provided to the company's disability income protection customers with 150 or more employees, UnumProvident helps customers in managing workplace absence by comparing incidence of a specific type of disability claim (such as obesity and medical conditions associated with obesity) with an incidence benchmark from UnumProvident's disability database -- the largest disability database in the world. UnumProvident then offers worksite health promotion and disease prevention solutions.

"This information can help employers better understand the reasons for and impact of lost time on operations," said Sandra Sincero, vice president of Customer Reporting Services for UnumProvident. "The data offers employers real insight into employee benefits usage, which they can use to help overcome productivity challenges. Ultimately this information can lead to better bottom-line outcomes, as well as help an employer better respond to employee needs."

According to Sincero, companies are also seeing how employee assistance programs and work/life balance programs can be an effective portal to community-based weight management programs. More employers are providing access to work/life balance programs as a service bundled with their disability income protection coverage. These services, says Sincero, are very helpful in providing information on resources and tools to make smarter lifestyle choices.

     (1) National Center for Chronic Disease Prevention and Health Promotion.
         Obesity trends; 1991 - 2001 prevalence of obesity among US adults by
         state. Atlanta: US Department of Health and Human Services, Centers
         for Disease Control and Prevention; 2003.
         http://www.cdc.gov/nccdphp/dnpa/obesity/trend/prev_reg.htm
     (2) Proactive Analytic Services Report, Disability Management - Obesity,
         UnumProvident Corporation, 2004.
     (3) Washington Business Group on Health launches institute to address
         obesity's enormous toll on corporate America; obesity epidemic costs
         organizations more than $12 billion annually. Washington, DC:
         Washington Business Group on Health June 17, 2003; Press Release.
     (4) Gans K, Rosett J, Eaton C. Treating and preventing obesity through
         diet: practical approaches for family physicians. Clin Fam Pract
         2002;4:391.
     (5) Sciamanna CN, Tate DF, Lang W, et al. Who reports receiving advice to
         lose weight? Results from a multistate survey. Arch Intern Med
         2000;160(suppl 2):2234-9.
     (6) Sherwood N, Story M. Obesity: a public health perspective. Clin Fam
         Pract 2002;4:469.
     (7) Ibid.

    About UnumProvident Corporation

UnumProvident (UNM) is the largest provider of group and individual disability income protection insurance in North America.* Through its subsidiaries, UnumProvident Corporation insures more than 25 million people and paid $4.8 billion in total benefits to customers in 2003. With primary offices in Chattanooga, Tenn., and Portland, Maine, the company employs more than 13,000 people worldwide. For more information, visit www.unumprovident.com .

UnumProvident is the brand name of UnumProvident Corporation's insuring subsidiaries.

UnumProvident represents the multiple insuring subsidiaries of UnumProvident Corporation, including the # 1 group and individual income protection carriers in the United States, according to the JHA 2002 U.S. Group and Individual Disability In-Force Surveys, 2003.

SOURCE  UnumProvident Corporation
    -0-                             02/17/2004
    /CONTACT:  Pamela S. Smith of UnumProvident Corporation, +1-423-294-7021,
or pssmithPR@unumprovident.com/
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    /Web site:  http://www.unumprovident.comhttp://www.cdc.gov/nccdphp/dnpa/obesity/trend/prev_reg.htm /
    (UNM)

CO:  UnumProvident Corporation
ST:  Tennessee
IN:  FIN INS
SU:  SVY

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