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Fast Food – Our Habit of Convenience

Habits we acquire happen over a period of time. They typically begin with a cue and a perceived positive reinforcement of a reward.

Maybe we bypass going to the fitness center or take a bike ride because it is more pleasant to sit on the couch and watch Netflix. It’s just too convenient to press the TV remote (cue) and then become engrossed in countless shows that are entertaining, educational – or both (reward). Doing this too often may develop into a new habit that could detract from a previous habit (e.g. gym or bike). We exchange one habit (exercising) for another, less-healthy habit (TV binge-watching).

According to a recent Centers for Disease Control and Prevention report, 36.6 percent of Americans eat some kind of fast food* each day, with men being a bit less discerning about what they eat (37.9 percent) than women (35.4 percent). When you think about it, fast food is always accessible throughout the day, making it just too convenient for many of us to pass up.

On a typical day, almost 23 percent of Americans will eat breakfast from a fast-food outlet, while about 44 percent of us will pick up a ‘quick’ meal during lunch. Not to be left out, fast-food dinners draw another 42 percent of Americans.

Ethnic group and age also provide differences when it comes to the daily consumption of fast food.

Ethnic Groups:

  • Black Americans – 42.4 percent
  • Whites – 37.8 percent
  • Latinos – 36.5 percent
  • Asian-Americans – 30.6 percent

Age Categories:

  • 20–39 years-old – 45 percent
  • 40-59 years-old – 38 percent
  • 60+ – 24 percent

Take-A-Way from This Report?

The conventional wisdom about fast food is that people eat it when they can’t afford something better (and healthier). However, this report suggests this wisdom is not necessarily true. For example:

  • Higher income equates to more fast food: The more money we have or make, the more likely we are to eat fast food on any given day. For example, about 32 percent of people who earn less than 130 percent of the federal poverty level eat fast food daily. However, over 36 percent of middle-income families (earn between 130 – 350 percent) purchase fast food daily, while 42 percent of people with incomes above 350 percent consume fast food daily.

This finding is interesting because healthier food can cost a bit more than fast food, and yet, regardless of having the ability to pay for more expensive, healthier food, we often elect the more convenient food that is available at our finger tips (often using the drive through). Additionally, with our younger population consuming more fast food compared to older generations, younger families (and their children) will be more likely to establish unhealthy eating habits – creating health issues later in life (obesity, heart disease, dementia, etc.). The intake of calories, fat, and sodium eventually adversely affects our health in many different ways.

Iowa Youth Obesity Rate is High

Another report recently released by The National Survey of Children’s Health compares the obesity rates of children (ages 10 to 17) for all 50 states. Almost 18 percent of our youth in Iowa are obese, ranking our state as the 10th highest state for youth obesity. Iowa’s white (non-Hispanic) youth are significantly higher than the national rate.

The implications of having overweight and/or obese youth present future challenges to our state. For one, employers desire to have healthy and productive employees in their workplaces, and having unhealthy employees will continue to leverage up their health insurance costs due to higher healthcare usage. No one wants a poor quality of life, but often this is a result of the choices and habits that have been established much earlier in our lives.

Per a recent Harvard T.H. Chan School of Public Health report, we are still trying to come to terms with the dietary fat we consume – fat that is good and fat that is bad.

This much we know. Establishing a habit based on mere convenience may not be the smart choice we should make for ourselves, individually – or as a society.

Now, where did I put my channel changer…

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*NOTE: For this survey, fast food was broadly defined as any item obtained from a “fast food/pizza” establishment. It is possible that some people may interpret fast food differently from one another – e.g. takeout sushi, etc.

By 2028, Iowa Employer Health Insurance Family Premiums Could Be…

As we enter the holiday season, I’m somewhat hesitant to share something that could spoil the holiday spirit – our projected health insurance premium 10 years from now. But to put a positive spin on this, especially as we prepare for Thanksgiving day, it is safe to assume the health insurance premiums that we are currently paying will be a ‘bargain’ compared to what we may be paying in 2028.

From our latest 2018 Iowa Employer Benefits Study©, we learned the average annual Iowa family health insurance premium is $17,448. Yes, this is a very inflated amount, especially when we compare it to 10 years earlier in 2008 ($11,520). Yet, this Iowa average is actually a bargain compared to the 2018 Kaiser Family Foundation national average of $19,616! Another positive spin for you!

The five-year average (2014 – 2018) increase for Iowa employer health insurance premiums is 7.7 percent. This figure represents all survey respondents, regardless of employee size and industry. It is important to acknowledge that this number represents the average increase BEFORE employers made adjustments to their health plans to keep the rate increase more manageable. Such adjustments typically include increasing deductibles, copayments and other plan features that require employees (and their dependents) to assume more of the medical costs when seeking healthcare through providers. Either way, the rate increases adversely affect employees’ the take-home pay.

The graph below calculates the average Iowa family premium rate trending forward for the next 10 years (compounded annually at 7.7%) and showing the annual employer and employee contributions (based on the Iowa employer contributing 68 percent of the total cost – another five-year average). One squeamish by-product of inflated health rates not shown on this graph are the plan design alterations that will surely be made by employers to shift costs to employees in order to keep the rates ‘manageable.’ One primary example of this cost-shifting is the family deductible, which was $1,963 in 2008 and is now at $3,900 in 2018 (99 percent increase over 10 years).

The family premium in 2028 could become $36,636! This amount is 110 percent more than today’s average family premium in Iowa.

Also worth noting, the trend line above the premium represents the estimated annual household income (HHI) in Iowa, compounded annually by 1.5% to 2028. The bubble above the $57,947 HHI for 2018 represents the percentage of family premium to HHI. This percentage is projected to almost double by 2028 if we cannot control healthcare costs. In short, over half of our household income (54 percent) could evaporate due to healthcare costs.

As we cast 10 years into the future, it is safe to give ‘thanks’ for what we are paying today in health insurance premiums. This is my best attempt to find some good in something that clearly is not.

Sorry to share this information.  Now, it’s time for the other turkey…

Have a wonderful Thanksgiving!

*DISCLAIMER:
I am NOT predicting that family premiums in Iowa will be $36k by 2028. Rather, based on past behaviors, employers will continue to find ways to alter their plan designs to keep their premiums lower than the initial increases they experience. Because of this, health plans will look considerably different in 10 years than they do today.

To learn more, we invite you to subscribe to our blog.

Top 15 Non-Insurance Benefits Employees Desire

Top 15 Non-Insurance Benefits Desired by EmployeesThe Iowa Healthiest State Initiative’s (HSI) vision is to become the healthiest state in the nation. In 2017, based on separate national indexes that provide different measures, Iowa is ranked #15 by the America Health’s Rankings®, and #21 by the Gallup-Healthways Well-Being Index®. The pursuit of this vision is both difficult and no doubt never-ending, but well worth the effort.

According to benefits provider, Unum, who recently surveyed 1,227 working adults in the U.S., the most coveted employee benefits is time spent away from the office. When presenting survey participants with 15 perks that are non-insurance and retirement related, participants were asked to choose their top five options. Ranked by popularity, the results are:

  1. Paid Family Leave* – 58%
  2. Flexible/remote work options* – 55%
  3. Professional development* – 39%
  4. Sabbatical leave* – 38%
  5. Gym membership or onsite fitness center* – 36%
  6. Student loan repayment – 35%
  7. Onsite healthy snacks* – 28%
  8. ID theft prevention – 28%
  9. Financial planning resources – 27%
  10. Fitness goals incentives* – 18%
  11. Public transit assistance – 16%
  12. Pet insurance – 15%
  13. Pet friendly offices – 15%
  14. Health coaching* – 14%
  15. Dedicated volunteer hours* – 12%

Many of the above benefits that employees appear to value, particularly those with an asterisk (*) beside them, fit nicely with the mission as outlined by HSI:

Improving the physical, social and emotional well-being of Iowans.

As the labor market continues to tighten in Iowa and around the country, employers are constantly looking for meaningful ways to attract (and retain) qualified employees. Accordingly, I’m planning to include some of these miscellaneous (but highly-valued benefits) in the 2019 Iowa Employer Benefits Study©.  Specifically, we wish to poll employers on whether they offer various paid and unpaid leave benefits, work/life benefits, wellness and other general perks. Largely dependent on the robustness of any given employment marketplace, the availability of employee benefits tend to be more localized.

Additionally, HSI’s mission and goals fit nicely with the workplace culture that Iowa employers must continue to assess. If employers are expecting to attract and retain healthy and productive employees, there is no time like the present to begin aligning the interests and desires of their employees with the overall benefits package they provide.

The culture of any organization is very often reflective of the benefits and compensation provided to its employees. Appropriately aligning this desired culture with workplace benefits will continue to distinguish forward-thinking employers.

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