Arya M. Sharma, MD

Government can hope to affect the health of populations by using fiscal measures to give tax credits for positive behaviours and to slap punitive taxes on behaviours that are deemed harmful - typical examples would be a tax-write off for gym-memberships and higher sales tax on fast food or sugary pop.

While both measures (and similar types of incentives or disincentives) may appear popular (the former, because everyone loves tax cuts or tax returns and the latter because everyone likes to see the ‘bad guys’ punished), whether any such measure are actually effective or even affordable is less clear that people may think.

This topic, in the context of using tax incentives to promote physical activity, is now explored in a paper by Barbara von Tigerstrom from the University of Saskatchewan published in the latest issue of the American Journal of Public Health.

These incentives come in two flavours: tax credits and sales-tax exemptions - both measures have recently been introduced in various jurisdictions across Canada.

Tax credits for enrollment and participation in physical activity include the federal government’s Children’s Fitness Tax Credit (CFTC) and credits for the use of public transportation. Several provinces and territories have or are currently looking into introducing similar measures.

With regard to sale-tax rebates or exemptions, although not specifically aimed at promoting physical activity, Ontario and British Columbia have dabbled in reduced taxes for bicycles and childrens’ recreational clothing and footwear, while Other provinces, such as Saskatchewan and Manitoba, do not impose sales tax on a broader range of athletic and recreational programs.

While all of this sounds good at first glance, von Tigerstrom and colleagues discuss that these measures may not be as effective as people may think and may in fact be rather expensive for the ‘return on investment’.

After all, these programs result in a substantial ‘investment’ costing the governments:

“When a government creates tax credits or exemptions, it chooses to forgo tax revenue that would otherwise be collected. Such measures, referred to as ‘‘tax expenditures,’’ therefore represent investments of public funds that should be justified in the same way that direct spending is.

The cost of the measures recently introduced in Canada is substantial. For example, the CFTC is estimated to cost the federal government approximately $90 million to $115 million each year in forgone tax revenue.

The province of Saskatchewan, with a population of about1million people, budgets $11 million to $18 million annually for its Active Families Benefit, out of a total departmental budget (Tourism, Parks, Culture and Sport) of approximately $113 million to $138 million.”

Not surprisingly, such measures are generally enthusiastically supported by those who have the most to gain - the fitness and recreational industry, which has lobbied governments with optimistic estimates on how such investments can pay substantial dividends in health care savings and tax revenues from a more productive workforce.

Needless to say, all of the optimistic assumptions for such calculations (as outlined in this paper) require some ‘blue-sky’ assumptions and have virtually no data to demonstrate their actual impact (which of course, as is usual with most such interventions, everyone is careful not to actually measure).

In fact, most of the limited data available show or suggest that such tax-expenditures have minimal effects, if any.

As the authors note:

“It is easy to spot the flaws in this assessment, but it is much more difficult to make a sound and realistic prediction of the long-term impact of tax incentives on a complex, multifactorial behavior like physical activity. No data exist on the extent to which income tax incentives change health behaviors because the fitness tax credits are the first income tax initiatives to have this aim, and no studies have yet directly studied their impact on physical activity.”

“Furthermore, even if a tax credit does encourage more parents to enroll their children in eligible programs, it is not clear what impact this would have on the children’s overall levels of physical activity. Will a child continue to be active on days when he or she is not participating in the organized activity or after the program has ended? If not, the benefits will be very modest in proportion to the government’s investment. If participation in organized physical activity does occur, will it simply displace physical activity that would have taken place in the form of free play or casual sports or games?”

“A related concern is that a tax credit will not provide an equal benefit or incentive to all families and in particular may not have much effect on lower-income groups.”

In contrast to tax credits, sales tax exemptions or rebates may have advantages in that they provide an immediate incentive and would particularly make expenditures more affordable for lower-income families. However, it is not evident that the magnitude of such rebates (about 6-8% in most provinces) would in itself have enough of an impact on prices to make these services or products more affordable and provide a real incentive to change behaviours.

It is far more likely that:

“…most tax-based schemes will create windfall gains for families that are inclined toward physical activity and that could easily afford the costs of programs and equipment without any public support.”

Another concern is that:

“Tax expenditures aim to affect individual behaviors without addressing systemic factors that could be strong influences on those behaviors; for example, they give incentives to register in physical activity programs or to purchase equipment, but they do not necessarily affect the availability of such programs or of safe places to use the equipment.”

In summary:

“The estimated costs of the tax-based programs in Canada are substantial; therefore, it is important to consider whether those public funds are better spent on other strategies that could instead provide direct public funding to improve recreational facilities and active transportation networks or to enhance physical activity programs in schools.”

I guess in the end we will still be likely to see more policies that are populistic and ‘buy’ votes than fiscal policies that actually make sense.

AMS
Edmonton, Alberta

von Tigerstrom B, Larre T, & Sauder J (2011). Using the Tax System to Promote Physical Activity: Critical Analysis of Canadian Initiatives. American journal of public health PMID: 21680912

I have previously blogged about the fact that in talking about the obesity problem, we spend more time talking about ‘what’ people do than ‘why’ they do it.

I, for one, am convinced that addressing ‘what’ people do, without addressing ‘why’ people do so, is unlikely to change behaviour or provide any meaningful solutions.

This is perhaps best exemplified by the problem with fast food - which, is often enough, blamed for its putative role in this epidemic.

I have tried to put this idea into the following video (subscribers will have to head to my site to see it).

Appreciate all comments,

AMS,
Edmonton, Alberta

In any public discussion of obesity, the prime concern appears to be about health.

Interestingly, however, the same public does not seem to actually support treating obesity like any other health problem - at least not in a publicly funded healthcare system.

This, perhaps not all that surprisingly, is the result of a study by Lund and colleagues from the University of Copenhagen, Denmark, just published in OBESITY.

Thus, in this representative survey of the Danish public (N = 1,141), although the majority supported prevention measures and ’softer’ obesity treatments (read ‘diet and exercise’), more radical treatments like bariatric surgery only found limited support.

The best predictor of these attitudes to the treatment of obesity was the belief that individuals are personally responsible for their own obesity.

This is perhaps not surprising given that public health messaging as well as many ‘well-meaning’ health professionals continue to propagate the stereotype that obesity is largely a self-inflicted condition easily prevented or remedied by simply choosing to eat less and move more. The fact that this piece of ‘advise’ is largely ineffective and does little more than increase weight-bias and stigmatisation, still appears to fall in the category of ‘privileged information’.

What is particularly paradoxical about this situation is that every single health economic assessment to date supports the notion that obesity treatments (particularly bariatric surgery for people with severe obesity) are far more cost-effective than many of the other ‘health’ services routinely provided to patients.

Thus, you would imagine that anyone who pays taxes (or insurance premiums) for health care, would be far more enthusiastic about their taxes (or premiums) being spent on treating obesity rather than watching them disappear into the black hole of treating its many complications.

Apparently, this is not how most tax payers think - not in Denmark and probably not in Canada either.

Interestingly, based on my own conversations with patients, people with obesity pretty much think the same.

Thus, even people who suffer from obesity themselves (or have battled it all their life) are far more enthusiastic when it comes to raising money for breast cancer, heart disease, diabetes, or arthritis than for obesity itself.

Thus, for example, as I have blogged before, it is rather funny how, although obesity is one of the biggest drivers of post-menopausal breast cancer, virtually none of the money raised for breast cancer each year ever finds its way into obesity research (or better treatments).

In fact, it would be fair to assume that the same people, who will happily give generously to cancer research, will be appalled if any of their money found its way into researching better surgical treatments for obesity, a treatment that is known to reduce cancer mortality by 60%.

How can anyone ever expect the ‘public’ to support obesity treatments, when even people with obesity (and apparently their friends and family) themselves don’t seem to think this a worthwhile cause?

Where are the donors, the sponsors, the trusts, the foundations, the campaigns, the armies of volunteers when it comes to finding “the cure” for obesity?

Just wondering - that’s all.

AMS
Toronto, Ontario

Lund TB, Sandøe P, & Lassen J (2011). Attitudes to Publicly Funded Obesity Treatment and Prevention. Obesity (Silver Spring, Md.) PMID: 21512511

A recent report commissioned by Alberta Health Services estimates that in 2005, the total direct and indirect costs of illnesses attributable to obesity in Alberta were $1.27 billion.

This represents 28.0% of the total direct and indirect costs attributable to obesity for 22 specific health conditions and 5.6% of the total direct and indirect costs for all health conditions in Alberta.

Coronary heart disease ($307.1 million) had the highest direct and indirect costs attributable to overweight and obese BMI status; osteoarthritis ($167.7 million), type 2 diabetes ($161.5 million), hypertension ($125.5 million), and the 14 cancer sites ($117.5 million) had the highest obesity-attributable costs after coronary heart disease. Among the 14 cancer sites, colorectal cancer ($31.6 million), postmenopausal breast cancer ($14.5 million), and leukemia ($11.0 million) had the highest costs attributable to overweight and obesity in Alberta.

While the direct health care cost attributable to overweight and obesity was $630.1 million, or 49.5% of the total cost of overweight and obesity, the indirect cost was $643.8 million including $63.1 million in short-term disability costs, $209.6 million in long-term disability costs, and $371.1 million in premature mortality costs.

As the report notes, these costs are conservative as the analysis did not include the costs for:

• Private out-of-pocket costs such as those paid for private caregivers, illness-related aids, and home modifications not reimbursed by governmental agencies;
• Costs associated with reduced production during work hours (presenteeism) as a result of a health problem;
• The value of time lost from work
• The value of lost leisure time of family members or friends who care for the patient;
• Intangible costs that involve pain and suffering borne by patients and their families.

The report also did not assess the cost of obesity in youth under age 15 or in the Aboriginal population living on reserves.

Although the report did not analyses how much of these costs could be reduced or avoided by providing effective obesity treatments, it is very likely (based on other estimates) that the savings could be substantial.

As I have said before, no health care system can afford not to tackle obesity.

AMS
Edmonton, Alberta

The Summary of The Cost of Obesity in Alberta Report is available here

Diet and exercise are often presented in public health messaging as the panacea for reducing the burden of obesity, thereby reducing the cost of obesity related conditions like stroke, ischemic heart disease, hypertensive heart disease, diabetes mellitus, osteoarthritis, post-menopausal breast cancer, colon cancer, endometrial cancer, or kidney cancer.

But will promoting diet and exercise really prove to be cost-effective in reducing the cost of these conditions?

This question was now explored by Megan Forster and colleagues from the University of Queensland, Australia, in a paper just published online in the International Journal of Obesity.

For their analyses, the researchers modeled two weight loss interventions that have been shown to reduce body weight (the dietary approaches to stop hypertension (DASH) program and a low-fat diet program) to determine if they would be cost-effective in Australia and to assess their potential to reduce the disease burden related to excess body weight.

The target population was the overweight and obese adult population in Australia in 2003, whereby costs and effects were calculated over a lifetime.

According to their calculations, the incremental cost-effectiveness ratios (ICERs) per disability adjusted life year (DALY) averted ranged between AUS$ 12,000 and 13,000 for cost of the programs (ICERs under AUS$50 000 per DALY are considered cost-effective).

However, when the total impact of the rather modest weight loss, post-intervention weight regain and low participation rates (generally less than 5% of the target population) are taken into account, these interventions would likely reduce the body weight-related disease burden at the population level by less than 0.1%.

Thus, although for participating individuals, these diet and exercise interventions to reduce obesity may potentially be cost-effective (although not cheap), they are likely to have a negligible impact on the total body weight-related disease burden at the population level.

Clearly, till we come up with more effective treatments for obesity and succeed in delivering these to a substantial proportion of the millions who would need such treatments, the cost burden of obesity is unlikely to decrease anytime soon.

AMS
Edmonton, Alberta