Childhood Obesity in America: Comprehensive Policy Solutions to a Growing Epidemic

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1 Childhood Obesity in America: Comprehensive Policy Solutions to a Growing Epidemic March 23, 2013 Jacquelyn Chou Paul Chung Julia Johnson Rhett-Alexander Paranay

2 Obesity rates have risen over time Source: Centers for Disease Control and Prevention, 2012

3 Nutrition and fitness primary factors in obesity Nutrition and fitness knowledge Caloric intake Food environment Increase in Obesity Fitness level

4 20 year cost outcomes of obesity Obesity Related Healthcare Savings (billion $) Median Gov't Share Sensitivity 1% decrease in obesity 3% decrease in obesity 5% decrease in obesity 2013 $5.7 $2.5 $4.1 - $ $11.24 $4.95 $9.8 - $ $17.1 $7.15 $ $ $43.38 $19.08 $ $ $28.98 $11.82 $ $ $72.3 $31.81 $49 - $97.5 Source: Center for Medicare/Medicaid, 2013; Finklestein, 2009; Center for Disease Control and Prevention, 2012;Wang, et. al, 2009; US Department of Commerce

5 Elimination of television advertising tax deductions Eliminate tax deductions on television advertisements Increase advertising costs Decreased number of fast-food advertisement Decreased consumption of calorie dense foods Decreased childhood and adolescent obesity rate Source: Chou, Rashad, & Grossman, 2005

6 Evaluation of television advertising deduction elimination Costs $700 million in revenues Source: Institute of Medicine, 2006 Minor administrative costs Political Feasibility Raises tax revenues Comprehensive tax reform Outcomes Childhood obesity 3% - 5% decrease 20 year forecast: $20-30 billion savings on Gov t healthcare Source: Chou, Rashad, & Grossman, 2005

7 I am Moving, I am Learning A long term investment Early childhood intervention program in Head Start curriculum Increase physical activity in children s daily routine Introduced children to healthy foods Prevented obesity from developing in young children Developed healthy behaviors early for long-term results

8 I am Moving, I am Learning a feasible solution Costs Political Feasibility Outcomes $290,000 - $14.5 million $4.35 million median cost Source:Administration for Children and Families, 2010 No roadblocks Executive order 50% increase in daily physical activity Source:Administration for Children and Families, 2010

9 EBT financial incentives for healthy eating reduces likelihood of obesity Financial Incentives 30 bonus for every $1 spent on targeted healthy foods up to $60/month Increase food purchasing power Change relative prices favoring targeted healthy foods Increased household expenditures on targeted healthy foods Improved household and child dietary intake Improved weight status and other healthy outcomes Adapted from U.S. GAO, 2008

10 EBT healthy incentives costly, but effective and politically feasible Costs Political Feasibility Outcomes $ billion Source: USDA, Farm Bill Support from 85% of surveyed SNAP participants Source: CSCP, % of participants increased consumption of healthy foods Source: Bodonyi & Gilroy, 2011

11 Next Steps Tax deduction elimination Comprehensive Tax Reform FCC and IRS joint enforcement Obesity reduction within 3 years IM/IL in all Head Start programs Executive Order Office of Head Start training and support Behavior improvement within 2 years 2013 Farm Bill USDA EBT system update & retailer recruitment Increased healthy food consumption within 2 years EBT Healthy Incentives Issue Causal Factors Solutions Next Steps

12 Acknowledgements Dr. DianeYoder Dr. Gary Painter Suzanne Alexander Dr.TJ McCarthy The American University Policy Solutions Challenge USA

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