A study by PwC Malta reveals that in 2016, adult obesity cost the country almost €36 million in terms of direct and indirect financial costs, on the basis of self-reported measures of body mass index (BMI).
Of these, 66 per cent comprise direct costs, including the cost of pharmaceuticals, primary care and hospital care.
Furthermore, 55 per cent of costs are borne by individuals and private sector employers.
It is estimated that the costs of obesity would rise by an additional €20 million when measured rates of BMI are used, with the adult rate of obesity standing at 34 per cent in such case, compared to the present rate of 25 per cent.
According to the study, the excess cost of obesity for individuals over 15 on a per capita basis amounts to €97 in 2016. Representing 0.4 per cent of Malta’s annual Gross Domestic Product, the costs of obesity are absorbing 8.1 per cent of annual public recurrent health expenditure.
In addition to financial costs, obesity leaves lasting adverse impacts on mental health, while also leading to a number of non-communicable diseases, including hypertension and diabetes.
It is estimated that obesity and being overweight are responsible for 17 per cent of total deaths in Malta. Moreover, obese individuals may also experience injustice and prejudicial treatment, this possibly resulting in emotional or psychological harm, and potentially, lower earnings owing to education and employment discrimination.
The report highlights that obesity is expected to generate an additional €5 million in costs by 2022, on the assumption that the 2015 rate of obesity (25 per cent) and the respective age and gender distributions are sustained between 2016 and 2022.
Maintaining the level of obesity at this level is a daunting task, the study says, especially in light of the high rates of childhood obesity and the rising trend in adult obesity over the last decade. Childhood obesity poses a long-term problem, given that obesity in children tends to predict obesity in adults.
High-level estimates indicate that almost an additional 90,000 hours would be lost from total productivity generation in the next six years. Furthermore, an increase of five per cent is expected in additional hospital in-patient and day patient stays, while an additional 690 obese individuals are projected to consume pharmaceuticals to treat anxiety by 2022.
Malta’s adult rate of obesity increased from 23 per cent in 2002 to 25 per cent in 2015 and obesity is one of the key areas on the health agenda during Malta’s presidency of the Council of the European Union.
Between 1980 and 2014, the rate of obesity globally almost doubled. Malta’s 25 per cent obesity rate is the highest in the European Union. “This is a reality which has become embedded in our society and which is creating a profound problem in terms of costs, these comprising not only monetary costs, but also health and wellbeing costs,” the report states.
Kevin Valenzia, PwC Malta Territory Senior Partner, said: “This deep-rooted problem is likely to become unmanageable should the prevalence of obesity continue increasing, especially due to the obesogenic environment characterising Malta, coupled by our hectic lifestyles, technology, infrastructure and the increase in chronic diseases”.
The 2015 European Health Interview Survey formed the basis of the financial modelling underlying this report. The data relates to the Maltese adult population over the age of 15, with self-reported measures of weight and height being reported by 3,430 individuals in the survey. Moreover, the costs of obesity refer to the marginal costs of obesity incurred by obese adults over adults of normal weight.
The PwC report, ‘Weighing the Costs of Obesity in Malta’, calls for active action on the part of all stakeholders, with the objective of marshalling resources, sustaining efforts and implementing successful interventions targeted at improving the wellbeing of Malta’s population.
A number of strategies and policies have already been laid out by the government, including ‘A Healthy Weight for Life: A National Strategy for Malta’ and a ‘Whole School Approach to a Healthy Lifestyle: Healthy Eating and Physical Activity Strategy’.
The report says that effective interventions are expected to improve the health and quality of life of individuals, while resulting in numerous cost savings on health spending. In fact, in other territories, PwC has estimated that the implementation of a number of obesity-related interventions over a 10-year period results in a benefit-to-cost ratio of 1.7.
The publication may be accessed through the following link.
www.pwc.com/mt/obesityreport