• The Costs of Obesity
• LAP-BAND^® System Procedure Cost
• Insurance and Health Plans
• Potential Tax Savings

The Costs of Obesity

The national cost of this disease is very high. Based on 1998 estimates, annual medical costs to treat patients who are overweight and obese were approximately 79 billion, or 93 billion in 2002 dollars. The healthcare cost burden of being obese now rivals that of smoking¹.

The personal cost of living with obesity can also be significant. Consider what you might spend on the following items:

• Out of pocket healthcare expenses
  • Over-the-counter medication costs
  • Co-pays for doctor office visits
  • Co-pays for lab work
  • Co-pays for specialists
  • Co-pays for physical therapists/allied health professionals
• Prescription co-pays
• Employment inactivity costs (days of missed work)
• Non-surgical weight loss programs (such as WeightWatchers^® or Jenny Craig^®)
• Grocery and dining costs

These expenditures quickly add up. You may find that dramatic weight loss can greatly reduce your weight related costs.

WeightWatchers is a registered trademark of WeightWatchers International, Inc.
Jenny Craig is a registered trademark of Jenny Craig, Inc.

LAP-BAND^® Adjustable Gastric Banding System Procedure Cost

Because the cost of the LAP-BAND^® System procedure varies from state to state and even from city to city, it's difficult to predict actual costs.

These differences are often due to:

• The type of health plan you have
• If your surgeon/hospital you choose is an in-network provider
• If your procedure is done on an in-patient (overnight) or out-patient (same day discharge) basis.

Generally, the cost of the procedure (facility, surgeon, and anesthesiologist) can range from $12,000 to $25,000. This cost usually includes the costs of adjustments for the first year after surgery. After the first year, follow-up visits will range from $35 to $200 each, depending on what is involved. Please keep in mind, post-surgical follow-up is crucial to achieving your best possible results.

Insurance and Health Plans

Today, many health plans (including Medicare and, in some states, Medicaid) cover the cost of LAP-BAND^® Adjustable Gastric Banding System surgery. This means that some, if not all costs, may be paid.

Each health plan will have certain criteria that need to be met before you can actually have the surgery. Attempting to navigate the world of insurance can be a challenging experience, but this web site provides useful information and resources to help you. Click here for more on Payment Options.

In some cases, your insurance plan might not cover the cost of LAP-BAND^® System surgery. They may issue a "denial" to your "prior authorization request". A denial may be due to a medical policy exception clause, or your health plan may not cover bariatric (weight loss) surgery. Depending on the reason, you and your doctor may still be able to reverse the denial. To obtain more information to help you deal with insurance-related issues, see Payment Options.

Potential Tax Savings

In the year you finance or pay cash for your LAP-BAND^® System surgery, you may be eligible to receive thousands of dollars back in potential tax savings. IRS Publication 502 states you can deduct your medical and dental expenses when they total more than 7.5% of your Adjusted Gross Income (see IRS publication 502, page 2 -- http://www.irs.gov/pub/irs-pdf/p502.pdf). Check with your accountant or tax advisor for more information.

Remember, tax and financial circumstances are different for each person and the laws are constantly changing. This information should be not be considered financial advice or used as a substitute for the advice of an accountant or tax advisor. Seek financial advice from a professional for any questions you have.

For more information on the potential tax savings, click on the image below to view a PDF file of the tax savings chart.

Click on the icon to view a PDF file of the medical expense tax deductions brochure

References:

1. Finkelstein EA, Fiebelkorn IC, Wang G. National medical spending attributable to overweight and obesity: how much, and whos paying? Health Affairs: The Policy Journal of the Health Sphere. May 14, 2003. Available at: http://content.healthaffairs.org/cgi/content/fulfill/hlthaff.w3.219v1/DC1. Accessed July 6, 2007.