Financial Incentives Could Mitigate Canada’s Health-Care Burden Caused by Unhealthy Lifestyles: Report

People take a brisk walk in Toronto, with the CN Tower in the background, on June 2, 2021. Nathan Denette/The Canadian Press

A report citing case studies proposes financial incentives to alleviate the strain on Canada’s health-care system, exacerbated by the impact of patients’ unhealthy lifestyle choices.

In a policy brief published on Aug. 23, research group SecondStreet.org raises concerns about the growing negative impact of unhealthy lifestyle choices. Factors such as insufficient exercise, poor dietary habits, and the use of substances have contributed to a range of health issues, including obesity, stroke, diabetes, high blood pressure, and heart disease.

“Canada spends billions each year treating health problems which come as a result of lifestyle decisions such as dietary choices and a lack of exercise,” said Colin Craig, SecondStreet.org president and co-author of the policy brief.

Citing a 2013 study, the report states that estimates for obesity-related costs in Canada at that ranged from $1.27 billion to over $11 billion, signifying that obesity constituted around 12 percent of the total national health spending. Similarly, a 2016 study, submitted to the Senate, said the economic cost of obesity, encompassing direct health-care expenditures and productivity lost, was projected to range between $4.6 billion and $7.1 billion annually in Canada.

Citing various studies, the report also states that Canada allocates $18 billion annually toward treating diabetes, $26 billion towards diet-related diseases, $11 billion targeting obesity, and $14 billion to managing high blood pressure.

While seeking to alleviate the strain on the health-care system, researchers said it is unlikely that policymakers will implement measures introducing new charges or premiums aligned with the health risks posed by patients’ lifestyle choices. As an alternative strategy, they propose financial incentives aimed at fostering healthier lifestyle behaviour among Canadian adults.

“Private companies and academic studies have shown that financial incentives can lead to improvements in patient health,” Mr. Craig said. “If patients live healthier lives, then that could reduce strain on the system.”

While incentive-based programs initiated by the government to promote healthy lifestyles have yielded mixed outcomes within Canada, the researchers said several successful instances have been observed worldwide.

For instance, U.S. company Safeway implemented a health-care plan to incentivize its employees to adopt healthier lifestyles. Notably, this initiative effectively curtailed health-related costs by providing employees with incentives of up to $1,560 per family when they sustained a healthy weight, maintained optimal blood pressure levels, refrained from smoking, and engaged in other favourable practises.

SecondStreet.org also cited the Swedish government’s approach to health care, known as “self-care.” Since 2001, Swedish health authorities have been proactively prescribing exercise as a remedy for patients. Exercise fees and memberships are considered tax-free benefits, fostering an environment conducive to healthier living.

The report also recommends that provincial governments, which spend hundreds of billions of dollars on health care, explore pilot projects aimed at using financial incentives to bolster patient health. One approach involves offering a $250 reward for weight loss and maintaining a healthy body weight. This strategy is a way to promote both regular exercise and balanced nutrition, which are key elements in disease prevention, the report said.