Growing obesity crisis tanking Aussie productivity
Australia faces a $90 billion-a-year obesity crisis by 2032 but is spending below the OECD average on preventive health to tackle it.
According to a report by Novo Nordisk, two-thirds of these costs will be felt in days away from work, premature deaths and other productivity losses.
Obesity currently costs the country approximately $39 billion a year, equivalent to two percent of GDP.
The report, prepared by the progressive McKell Institute and the conservative Menzies Research Center on behalf of the company behind weight-loss wonder drug Ozempic, calls for a policy response to “all of the above”.
This includes phased subsidies for GLP-1 drugs, including Ozempic and Wegovy, initially targeting high-risk groups and disadvantaged populations, to keep the strain on the public purse.
The drugs are already subsidized under the Pharmaceutical Benefits Scheme to treat type 2 diabetes, but the federal health minister is considering expanding availability so more Australians can access them at a lower cost.
The report recommends providing nutrition, exercise and behavioral support to those who qualify for government-subsidized medications.
Preventive health expenditure should be increased from two percent to at least three to four percent of the total health budget, in line with OECD averages.
Australia’s move to mandatory health star ratings is also supported in the report.
Roughly 67 per cent of Australian adults are classified as overweight or obese; this rate was 56 percent in 1995.
One in four children is overweight or obese, and 80 percent of these adolescents become obese adults.
Obesity also disproportionately affects low-income groups and people living in regional and remote areas, further deepening existing health inequalities.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
