FHCE 3100 1nd EditionExam # 3 Study Guide FHCE 3100 Exam 3 Study Guide➢ Food and the Consumer: Current Issues and Controversies○ The Obesity Epidemic■ why do we care? because when we retire, it is our financial burden to bear;most obesity costs are passed on to taxpayers■ definitions● obesity: body mass index of 30 or higher● body mass index, or BMI: measure of an adult’s weight in relationto his or her height, specifically the adult’s weight in kilogramsdivided by the square of his or her height in meters■ one expert places obesity-related medical costs at around 190 billiondollars annually ■ overall, on average, obese people spent $3271 per year more for medicalcare than did normal weight people■ by 2018: rising obesity will cost U.S. health care $344 bil per year■ obesity and medical costs● nearly 21% of US medical costs can be blamed on obesity,according to new research (Cornell) ■ men and women● obese men spend an additional $1152 per year in medical costs● obese women spend additional $3613 per year in medical costs● women suffer from obesity in different ways than men■ obesity has risen 34% since 1960 ● probably due to the increasingly sedentary lifestyles we live■ diseases and conditions caused by obesity● hypertension, type 2 diabetes, coronary heart disease, stroke,gallbladder disease, osteoarthritis, sleep apnea, cancers■ obesity and tax dollars● “obesity dollars” - being spent mainly through Medicare andMedicaid● both are programs funded by tax dollars● MediCARE is for the elderly and disabled● MediCAID is for lower income individuals and families● 1.45% of your paycheck is cut to be put toward Medicare■ children and obesity● in just two decades, prevalence of overweight kids more thandoubled for U.S. children of ages 6-11 ○ from 7% to 18%■ teens and obesity● in 2 decades, overweight teens quadrupled○ childhood obesity responsible for $14 billion in directmedical costs■ obesity in youth● non-hispanic whites: 17.5% of men, 14.7% of women are obese● non-hispanic blacks: 22.6% of men, 24.8% of women● Mexican Americans: 28.9% of men, 18.6% of women● diabetes, poverty, and obesity are all connected; poverty influencesthe other two and their likelihoods of occurring ■ obesity and work● $164 billion - the Society of Actuaries estimates that US employersar losing this amount in productivity each year due to obesityrelated issues with employees● $6.4 billion - every year this amount is estimated to be lost due toemployee absenteeism related to obesity○ to make up for these losses, businesses charge more toconsumers● employers can now charge obese/overweight employees addition30-50% more for their health insurance IF the employee refuses toparticipate in a wellness program designed to lose weight○ Wells Fargo - HQ in Minneapolis has gym in basement;when employees use it, the company rewards them bypaying a larger percentage of their Medicare costs● well can’t you just lie about your eating/wellness habits?○ lying on health insurance forms is FRAUD - one can beprosecuted and lose insurance ■ obesity on the road● vehicles that carry around obese/overweight Americans burnalmost an additional 1 billion gallons of gasoline every year - that’snearly 1% of total gasoline usage! ■ obesity in the air ● U.S. airlines are consuming an extra 350 million gallons of fuel peryear due to overweight passengers● heavier passengers = more fuel to get off the ground● the airliners are not going to absorb this cost = higher ticket fares ■ where is obesity● most prevalent in southeast, midwest● percentage of U.S. adults currently overweight or obese (BMIgreater than or equal to 25) - 69% ■ obesity and college● researchers discovered that UGA students are willing to gradeoverweight students’ work lower just because they are overweight(Moorman and Wicks-Smith) ○ Today’s Consumption Behavior■ consumer choices are determined by tastes/preferences, habit/convenience,culture/emotions/values, cost, nutrition/health benefits/body image,innovation/marketing■ spending on food:● according to CE: consumer spending on food dropped 10%between 1990-2000; declined an additional 5% between 2006-09 ● spending on food = indicator of how healthy economy is, alsoindicator of how healthy we are○ what are we buying with our food dollars?■ medicine and higher insurance costs!● food spending and obesity ○ low income families lack access to full service grocerystores and farmers’ markets in their neighborhoods○ healthy food is usually more pricey, but refined grains andadded sugars and fats are cheaper and readily available inlow income communities ○ 2002 study - 200 neighborhoods - 3 times as manysupermarkets in wealthy neighborhoods as in poorneighborhoods - 4 times as many in predominantly whiteareas as in mostly black areas ● households w/limited resources to get enough food try to stretchtheir dollars by purchasing cheap and energy rich (read: sugar)foods that are filling - maximize calories per dollar ○ less expensive and energy dense foods = lower nutritionalquality ○ overconsumption of these = obesity○ food choices with financial constraints● lower income neighborhoods have fewer physical activityresources including fewer parks, green spaces, bike paths, etc ● difficult to lead active lifestyle and families facecrime/traffic/unsafe equipment■ annual food expenditure in 2013● $126.96 per week, $50.78 per person per week ● this falls in between low-cost and moderate-cost food planaccording to USDA● USDA’s food plan○ national standard for a nutritious diet at low cost ○ represents set of market baskets of food that people ofspecific age/gender could consume to maintain healthy dietmeeting dietary standards, taking into account foodconsumption patterns of US households○ this plan determines who is poor in the US○ assumes that of income is spent on food, and of⅓ ⅔income is spent on vehicles/houses○ how much is a fair amount to be spending on food?■ food and beverage consumption●