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Outcomes in a Program that Offers Financial Rewards for Weight Loss

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A variety of approaches are being used to treat obesity and encourage weight loss. One promising strategy based on psychology and behavioral economics is to offer fi nancial incentives for weight loss. Obesity is costly to health insurance companies (Finkelstein, Fiebelkorn, and Wang 2003) and employers (Cawley, Rizzo, and Haas 2007), so for either or both of those organizations to offer monetary incentives for enrollees or employees to lose weight could be mutually benefi cial. This chapter studies data from a fi rm that coordinates a program of fi nan-cial incentives for weight loss in various work sites in the United States. We study attrition and weight loss in three types of incentive programs: one that offers no fi nancial rewards for weight loss, one that offers quarterly payments that rise in value with the amount of weight loss, and a third that takes deposits (bonds) that are only refunded if the employee achieves a specifi c weight loss goal, and also includes a quarterly lottery for those who have lost weight. Relative to previous studies of weight loss in response to fi nancial incentives, strengths of this study include a large sample size (2,407) and a long intervention (one year).
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