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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 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
3 Physical Inactivity The Effect on Health CVD ObesityCancer Diabetes Kidney Disease Osteo- porosis Injury Prevention Violence Prevention Mental Health Arthritis © 2003 Michigan Fitness Foundation
4 Physical Inactivity The Economic Cost in Michigan Over 4 million Michigan adults are physically inactive. Total cost of $8.9 billion in 2002. © 2003 Michigan Fitness Foundation
5 Costs are borne largely by: Employers health insurance premiums lost productivity State of Michigan Medicaid Total cost of $8.9 billion in 2002. Ultimately, Michigan residents absorb these costs. $1,175/adult © 2003 Michigan Fitness Foundation
6 Medicaid portion: $69 million Total cost of $8.9 billion in 2002. 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 © 2003 Michigan Fitness Foundation
7 Total cost of $8.9 billion in 2002. Total Cost Breakdowns © 2003 Michigan Fitness Foundation
8 Medical Care Costs Direct costs: $58 million Indirect costs: $174 million © 2003 Michigan Fitness Foundation
9 Workers’ Compensation Costs Direct costs: $8 million Indirect costs: $32 million Largely related to musculoskeletal conditions © 2003 Michigan Fitness Foundation
10 Lost Productivity Costs Direct costs: $8.7 billion Indirect costs: $0 million Costs arise from: Absenteeism Presenteeism Short-term disability On-the-job injuries Physical inactivity results in the loss of 162 productive hours (~20 days) per worker. © 2003 Michigan Fitness Foundation
11 Financial Forecast Cost of inactivity ($billions) © 2003 Michigan Fitness Foundation
12 Cost Avoidance If 1 in 20 sedentary adults become active... © 2003 Michigan Fitness Foundation
13 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. © 2003 Michigan Fitness Foundation
14 “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 Olszewski Director of the Michigan Department of Community Health © 2003 Michigan Fitness Foundation
15 “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.” © 2003 Michigan Fitness Foundation
16 Michigan can’t afford to wait. Getting 209,000 Michiganders moving is a shared responsibility. © 2003 Michigan Fitness Foundation
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