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Three Interventions That Reduce Childhood Obesity Are Projected To Save More Than They Cost To Implement Gortmaker, Steven L; Wang, Y Claire; Long, Michael W; Giles, Catherine M; Ward, Zachary J; Barrett,
Jessica L; Kenney, Erica L; Sonneville, Kendrin R; Afzal, Amna Sadaf; Resch, Stephen C; Cradock, Angie L
. Health Affairs ; Chevy Chase Vol. 34, Iss. 11, (Nov 2015): 1932-65A.
ProQuest document link
ABSTRACT (ENGLISH) Policy makers seeking to reduce childhood obesity must prioritize investment in treatment and primary prevention.
We estimated the cost-effectiveness of seven interventions high on the obesity policy agenda: a sugar-sweetened
beverage excise tax; elimination of the tax subsidy for advertising unhealthy food to children; restaurant menu
calorie labeling; nutrition standards for school meals; nutrition standards for all other food and beverages sold in
schools; improved early care and education; and increased access to adolescent bariatric surgery. We used
systematic reviews and a microsimulation model of national implementation of the interventions over the period
2015-25 to estimate their impact on obesity prevalence and their cost-effectiveness for reducing the body mass
index of individuals. In our model, three of the seven interventions-excise tax, elimination of the tax deduction, and
nutrition standards for food and beverages sold in schools outside of meals-saved more in health care costs than
they cost to implement. Each of the three interventions prevented 129,000-576,000 cases of childhood obesity in
2025. Adolescent bariatric surgery had a negligible impact on obesity prevalence. Our results highlight the
importance of primary prevention for policy makers aiming to reduce childhood obesity. FULL TEXT
Headnote
ABSTRACT Policy makers seeking to reduce childhood obesity must prioritize investment in treatment and primary
prevention. We estimated the cost-effectiveness of seven interventions high on the obesity policy agenda: a sugar-
sweetened beverage excise tax; elimination of the tax subsidy for advertising unhealthy food to children;
restaurant menu calorie labeling; nutrition standards for school meals; nutrition standards for all other food and
beverages sold in schools; improved early care and education; and increased access to adolescent bariatric
surgery. We used systematic reviews and a microsimulation model of national implementation of the interventions
over the period 2015-25 to estimate their impact on obesity prevalence and their cost-effectiveness for reducing
the body mass index of individuals. In our model, three of the seven interventions-excise tax, elimination of the tax
deduction, and nutrition standards for food and beverages sold in schools outside of meals-saved more in health
care costs than they cost to implement. Each of the three interventions prevented 129,000-576,000 cases of
childhood obesity in 2025. Adolescent bariatric surgery had a negligible impact on obesity prevalence. Our results
highlight the importance of primary prevention for policy makers aiming to reduce childhood obesity.
The childhood obesity epidemic in the United States affects all segments of society. There is a clear need for
action by governments, foundations, and other relevant institutions to address this public health problem.
Controlling childhood obesity is complex because many risk behaviors are involved, shaped by multiple
environments and requiring multiple intervention strategies.1-4 However, simply asking what works without
considering costs has led to the proliferation of obesity treatment and prevention initiatives with limited evaluative
information. Little serious discussion has taken place about relative costs or cost-effectiveness. When we
searched the PubMed database of the National Library of Medicine for articles published through 2014 containing
the term child obesity, we found more than 31,000, but only 89 of these also contained the term cost-effectiveness.
Communities and health agencies have limited resources to address high rates of childhood obesity and need to
know how best to invest those resources.
There are two main approaches to altering the population prevalence of obesity in children: treating obesity after
onset and preventing excess weight gain (primary prevention). Many studies have documented the effectiveness
of interventions using these two different ap- proaches. For example, a meta-analysis of ado-lescent bariatric
surgery studies indicates an average reduction in body mass index (BMI) of 13.5 kg/m2 following this procedure.5
Some nonsurgical interventions to treat childhood obesity are effective, but effect sizes are small relative to the
high BMIs (or BMI z-scores-that is, BMI scores that are standardized for age and sex) of the children before the
intervention,6 and treatments may reach too few children to have a substantial population-level impact. For
example, bariatric surgery is used with only about 1,000 adolescents per year.7
The promise of primary prevention strategies during childhood has been bolstered by recent findings generated by
mathematical models of the physiological development of excess weight in children, adolescents, and adults.8,9
Modeling indicates that excess weight accumulates slowly, and excess weight gain among young children is dueto
relatively small changes in energy balance.
For example, among children ages 2-5, average excess weight gain is driven by an excess of about 33 extra
kilocalories per day.10 Changes needed to prevent excess weight gain and prevent obesity are thus quite small in
childhood. By adolescence, however, excess weight has accumulated for more than a decade, with an average
imbalance of almost 200 extra kcal/day.8,10 The typical adult with a BMI greater than 35 (about 14 percent of the
adult population) consumes 500 kcal/day more than is needed to maintain a healthy body weight.9 Improving
energy balance via improved diet and physical activity early in childhood thus requires much smaller changes than
those needed once obesity is established in adolescence and adulthood.
In addition, a large body of experimental evidence indicates that certain behavioral changes can reduce BMI and
obesity prevalence in children. For example, as documented in online Appendix A1,11 there is clear evidence of the
effectiveness of reducing the intake of sugarsweetened beverages on reducing BMI and obesity prevalence.
There is also strong evidence that reducing television viewing and other screen time leads to significant reductions
in BMI and obesity prevalence, mainly via dietary changes12 (also documented in Appendix A2).11 Despite
growing evidence that targeted interventions can improve diet and reduce BMI and obesity prevalence, there is
limited evidence concerning the cost-effectiveness of these approaches and the potential US population-level
impact of either treatment or preventive interventions.
In this article we present results of an evidence review and microsimulation modeling project concerning the cost-
effectiveness and population-level impact of seven interventions identified as potentially important strategies for
addressing childhood obesity. We conducted systematic evidence reviews of the interventions' effectiveness and
estimated costs and reach under specified implementation scenarios described in Appendices A1, A2, and A4-
A8.11 We developed a microsimulationmodel to assess key cost-effectiveness metrics of these interventions if
they were to be implemented nationally.
Study Data And Methods
We developed an evidence review process and microsimulation model to evaluate the costeffectiveness of
interventions for childhood obesity. Our modeling framework built on the Australian Assessing Cost-Effectiveness
approach13,14 in obesity15 and prevention studies.16 Our microsimulation model used US population, mortality,
and health care cost data. We focusedonoutcomes ofcostperBMIunitchange over two years following an
intervention and tenyear changes in obesity, health care costs, and net costs. We followed recommendations of
the US Panel on Cost-Effectiveness in Health and Medicine in reporting our results, including using a 3 percent
discount rate.17
Our approach has distinct methodological components designed to improve both the strength of evidence and the
applicability of results to real-world decision making.We created a stakeholder group of thirty-two US policy
makers, researchers, and nutrition and physical activity experts to provide advice concerning the selection of
interventions, evaluation of data, analyses, and implementation and equity issues. This group advised us to look
broadly for interventions to evaluate across settings and sectors. The clinical subgroup selected adolescent
bariatric surgery as an important benchmark clinical intervention to evaluate, since many insurers pay for this
treatment.18
Interventions Our stakeholder group selected for the study seveninterventions that are high on the treatment and
prevention policy agenda (further details about the interventions are provided in the Appendices).11 The
interventions are as follows: an excise tax of one cent per ounce on sugar-sweetened beverages, applied nationally
and administered at the state level; the elimination of the tax deductibility of advertising costs for television ads
seen by children and adolescents for nutritionally poor foods and beverages; restaurant menu calorie labeling,
modeled on the federal menu regulations to be implemented under the Affordable Care Act; implementation of
nutrition standards for federally reimbursable school meals sold through the National School Lunch and School
Breakfast Programs, modeled on US Department of Agriculture (USDA) regulations implemented under the
Healthy, Hunger-Free Kids Act of 2010; implementation of nutrition standards for all foods and beverages sold in
schools outside of reimbursable school meals, modeled on USDA regulations implemented under the Healthy,
Hunger-Free Kids Act; improved early childhood educationpolicies and practices, including the national
dissemination of the Nutrition and Physical Activity SelfAssessment for Child Care (NAP SACC) program; and a
nationwide fourfold increase in the use of adolescent bariatric surgery.
Intervention Specifications, Implementation Scenarios, And Costs We specified a national implementation
scenario for each of the interventions using the best available data for population eligibility and costs at each level
of implementation, from recruitment to outcomes. Costing followed standard guidelines19,20 (for details of
models and costing, see Appendix A3).11 All costs were calculated in 2014 dollars and adjusted for inflation using
the Consumer Price Index for all nonmedical costs and the Medical Care Consumer Price Index for medical costs.
Evidence Reviews Of Intervention Effects We estimated the effects of each of the seven interventions using an
evidence review process consistent with the Grading of Recommendations Assessment, Development, and
Evaluation (GRADE) approach21 and guidelines from the Cochrane Collaboration.22 Details of the evidence
reviews for the interventions are provided in Appendices A1, A2, and A4-A8.11
Microsimulation Model We developed a microsimulation model to calculate the costs and effectiveness of the
interventions through their impact on BMI changes, obesity prevalence, and obesity-related health care costs over
ten years (2015-25). This is a stochastic, discrete-time, individual-level microsimulation model of the US population
designed to simulate the experience of the population from 2015 to 2025.
The model used data from the Census Bureau, American Community Survey, Behavioral Risk Factor Surveillance
System, National Health and Nutrition Examination Surveys (NHANES), and National Survey of Children's Health. It
also used longitudinal data about weight and height from the National Longitudinal Survey of Youth, National
Longitudinal Study of Adolescent to Adult Health, Early Childhood Longitudinal Study-Kindergarten, Panel Survey
of Income Dynamics, and NHANES I Epidemiologic Followup Study.
We used smoking initiation and cessation rates from the National Health Interview Surveys and mortality rates by
smoking status and BMI from the NIH-AARP Diet and Health Study. Details of the data, analyses, and model are
provided in Appendix A3, and key model input parameters are listed in Appendix Exhibit A3.1.11
The estimated effects of the interventions on health care costs werebased on national analyses that
indicatedexcess health carecostsassociated with obesity among children and adults (see Appendix A3).11 We
assumed that each intervention took time-typically 18-36 months-to decrease the BMI of individuals who received
each intervention.8,9 Estimates of intervention costs included one-time start-up and ongoing costs, as well as
enforcement and compliance costs, but did not include costs of passing a policy. The annual costs for each
intervention are the average of its discounted total costs.
We used a "modified" societal perspective on costs. This means that we did not include several possible economic
impacts of the interventions, such as productivity losses associated with obesity or patient costs for items such
as transportation to clinic visits or the value of time spent seeking or receiving medical care. It was reasonable to
exclude these economic impacts because they are difficult to estimate systematically and likely to be small within
a ten-year period, relative to the intervention and health care costs.
We assumed that effects were sustained over the model's time frame-that is, eight years after two start-
upyears.For policy changes such asthe sugar-sweetened beverage excise tax, the elimination of the tax subsidy for
advertising unhealthy food to children, and restaurant menu calorie labeling, sustaining an effect for ten years is
reasonable, as the changed policy will continueoverthatperiod.For theinterventions that set nutrition standards for
school meals and other foods and beverages sold in schools, we can assume that most children will be exposed to
these for a substantial period of time-for example, from first through twelfth grades. For bariatric surgery, we can
also assume that the surgical change will persist over this time period.
Details of key input parameters for the interventions modeled where there is known variation from reviews of the
relevant literature, including the parameters' distributions and assumptions, are outlined in Appendices A1, A2, and
A4-A8.11 As explained above, all results are expressed in 2014 US dollars and discounted at 3 percent annually.
We calculated costs per BMI units reduced over two years (2015-17). We estimated health care costs, net costs,
and net costs saved per dollar spent over ten years (2015-25), since this is a time frame frequently used in policy
calculations.Weinflatedhealth carecoststo2014 dollars using the Medical Care Consumer Price Index. We
estimated obesity cases prevented and changes in childhood obesity prevalence in 2025, at the end of the period
of analysis.
Uncertainty And Sensitivity Analyses We calculated probabilistic sensitivity analyses by simultaneously sampling
all parameter values from predetermined distributions. We report 95 percent uncertainty intervals (around point
estimates) in Exhibits 1 and 2, taking 2.5 and 97.5 percentile values from simulated data.23 We calculated
uncertainty intervals using Monte Carlo simulations programmed in Java over one thousand iterations of the
model for a population of one million simulated individuals scaled to the national population size.
Consultation The stakeholder group assisted us in reviewing additional considerations, including quality of
evidence, equity, acceptability, feasibility, sustainability, side effects, and impacts on social and policy norms.
Limitations The study had several limitations. First, its results were based on a simulation model that incorporated
a broad range of data inputs. While we included the best available evidence on population characteristics, likely
trajectories of obesity prevalence, and obesity-related health care costs, our ability to forecast precise impacts of
all of the modeled interventionswas limited by the uncertainty around each of these inputs and by the
assumptions required to build the model (see Appendix A3).11
In previous publications we used a Markov cohort simulation model to estimate the impact of two of the
interventions modeled here, the sugar-sweetened beverage excise tax and the elimination of the tax subsidy for
advertising unhealthy food to children.24-26 The cohort model was limited in its ability to model heterogeneity of
individual differences, exposure to the intervention, and trajectories of BMI over the life course, and it could not
calculate population estimates for specific years. With the microsimulation model, we were able to estimate the
number of cases of obesity prevented. For both of these interventions, the estimated costs per BMI unit reduction
were similar under both modeling approaches, and both interventions were cost-saving.
Second, we modeled each of the interventions separately, which limited our ability to estimate their cumulative
effects. Future obesity prevention simulation modeling should begin to evaluate the impact of simultaneous
implementation of multiple interventions.
Third, there is limited evidence that directly links the interventions we evaluated to change in population-level
obesity prevalence. However, as detailed in Appendices A1, A2, and A4-A8,11 six of the interventions were
supported by randomized trials or natural or quasi-experimental evaluations27 that linked the intervention or
behavioral mechanism targeted by the intervention directly to reductions in BMI for recipients of each intervention.
We incorporated uncertainty for all of the underlying model inputs into the probabilistic uncertainty analyses (see
Appendix A3.1).11
Fourth, because we focused on obesity, we did not incorporate additional health improvements and health care
cost reductions due to improvements in diet and physical activity that were independent of reductions in BMI (for
example, reductions in diabetes and heart disease).28
Study Results
There were large differences in the projected populationreach of the interventions(Exhibit 1). The reach of bariatric
surgery, the smallest, was very limited, even assuming a fourfold increase in the number of adolescents who
receive the procedure. The most recent national data indicate that in 2012, among adolescents classified as
having grade 3 obesity (a BMI of roughly 40 or above), fewer than two in a thousand received the procedure
(Appendix A8).11 The largest population reaches occurred with interventions that would affect the whole
population, such as the sugar-sweetened beverage excise tax and restaurant menu calorie labeling-both of which
would reach 307 million people.
The annual costs of the interventions were driven by both the cost per person and the population reach and varied
greatly (Exhibit 1).
Differences across interventions in cost per BMI unit reduction varied more than 2,000-fold. Eliminating the tax
deduction for advertising nutritionally poor food to children would reduce a BMI unit for $0.66 per person, while
increasing access to bariatric surgery would reduce a BMI unit for $1,611.
Three of the interventions studied were found to be cost-saving across the range of modeled uncertainty: the
sugar-sweetened beverage excise tax, eliminating the tax subsidy for advertising unhealthy food to children, and
setting nutrition standards for food and beverages sold in schools outside of school meals (Exhibit 2). In other
words, these interventions were projected to save more in reduced health costs over the period studied than the
interventions would cost to implement. Perhaps more important, the interventions were projected to prevent
576,000, 129,100, and 345,000 cases of childhood obesity, respectively, in 2025. The net savings to society foreach
dollarspentwereprojectedtobe$30.78, $32.53, and $4.56, respectively.
Restaurant menu calorie labeling was also projected to be cost-saving (Exhibit 2), although on average the
uncertainty intervals were wide because of the wideuncertaintyintervalaround the estimated per meal reduction in
calories ordered or purchased as a result of the intervention (see Appendix A4).11 This uncertainty highlights the
need for ongoing monitoring of this policy when it is implemented nationwide in 2016. Of note, a study of
restaurant menu calorie labeling in King County, Washington, found that eighteen months after implementation of
menu calorie labeling regulations, restaurants had reduced their calorie content by 41 kilocalories per entrée,29 a
much larger effect than the reduction of 8 kilocalories per meal estimated in this study.
Setting nutrition standards for school meals would reach a very large population of children and have a substantial
impact: An estimated 1,816,000 cases of childhood obesity would be prevented, at a cost of $53 per BMI unit
change (Exhibits 1 and 2). Improved early care and educationpolicies and practices would reach a much smaller
segment of the population (1.18 million), preventing 38,400 childhood obesity cases if implemented nationally, at a
cost of $613 per BMI unit change.
The modeled preventive interventions could significantly reduce the overall prevalence of childhood obesity in the
United States. Currently, the prevalence of obesity among children and youth is about 17 percent.30 Based on our
model, the largest reduction in childhood obesity prevalence compared to no intervention would occur with the
implementation of nutrition standards for school meals (a reduction of 2.6 percent; data not shown), followed by
the sugar-sweetened beverage excise tax (0.8 percent). Adding in the two other cost-saving interventions
(elimination of the tax subsidy for advertising unhealthy food to children and setting nutrition standards for other
foods and beverages sold in schools) would reduce prevalence by an additional 0.7 percent.
These interventions would have a modest impact on obesity prevalence. Even if all were implemented and the
effects were additive, the overall impact would be a reduction of 4.1 percent, or 2.9 million cases of childhood
obesity prevented for the population in 2025.
Tax Revenue In addition to their effects on obesity, we estimated that both the sugar-sweetened beverage excise
tax and the elimination of the tax subsidy for advertising unhealthy food to children would lead to substantial
yearly tax revenues ($12.5 billion and $80 million, respectively). These revenues were not included in our
calculations of net costs.
Discussion
These results indicate that primary prevention of childhood obesity should be the remedy of choice. Four of the
interventions studied here have the potential for cost savings-that is, the interventions would cost less to
implement than they would save over the next ten years in health care costs-and would result in substantial
numbers of childhood obesity cases prevented.
The sugar-sweetened beverage excise tax- and, to a lesser extent, removing the tax deduction for advertising
unhealthy food to children- would also generate substantial revenue that could be used to fund other obesity
prevention interventions. The excise tax has been the focus of recent policy discussion,25,31 and the recent
enactment of an excise tax of one cent per ounce in Berkeley, California, and the national implementation of an
excise tax in Mexico indicate the growing political feasibility of this approach.
The improvements in meal standards in the National School Lunch and School Breakfast Programs as well as
implementation of the first meaningful national standards for all other foods and beverages sold in schools make
the Healthy, Hunger-Free Kids Act one of the most important national obesity prevention policy achievements in
recent decades. Although improving nutrition standards for school meals was not intended primarily as an obesity
reduction strategy, we estimated that this intervention-which includes improving the quality of school meals and
setting limits on portion sizes-would have the largest impact on reducing childhood obesity of any of the
interventions evaluated in this study.
The individual benefits of bariatric surgery and other intensive clinical interventions to treat obesity can be life
changing.32 Another promising new obesity treatment strategy employs lowcost technological approaches-
computerized clinical decision support-to effectively reduce excess childhood weight.33 Our study should in no
way discourage ongoing investment in advancing the quality, reach, and cost-effectiveness of clinical obesity
treatment. However, our results indicate that with current clinical practice, the United States will not be able to
treat its way out of the obesity epidemic. Instead, policy makers will need to expand investment in primary
prevention, focusing on interventions with broad population reach, proven individual effectiveness, and low cost of
implementation.
We modeled each intervention in this study separately to help policy makers prioritize investment in obesity
prevention. However, as the results show, none of the interventions by itself would be sufficient to reverse the
obesity epidemic. Instead, policy makers need todevelop a multifaceted prevention strategy that spans settings
and reaches individuals across the life course.
Because the energy gap that drives excess weight gain among young children is small, and adult obesity is difficult
to reverse, interventions early in the life course have the best chance of having a meaningful impact on long-term
obesity prevalence and related mortality and health care costs. However, early intervention will not
besufficientifyoungchildrenat ahealthyweight are subsequently introduced into environments that promote excess
weight gain later in childhood and in adulthood.
Increased access to adolescent bariatric surgery had the smallest reach and the highest cost per BMI unit
reduction. Of the other six interventions that we analyzed, improving early care and education using the NAP SACC
model both had the smallest reach, because of the intervention's relatively small age range and voluntary
implementation strategy, and was the most costly per BMI unit reduction. Nonetheless, this intervention might still
be a good investment, considering that even small changes among very young children can be important for
setting a healthier weight trajectory in childhood.
Additionally, the intervention focuses on improvements in nutrition, physical activity, and screen time for all
children and thus could have benefits for child development beyond reducing unhealthy weight gain. In contrast to
the tax policies we evaluated, which have been met with opposition from industry, the NAP SACC program is well
liked and has been widely adopted.
While policy makers should consider the longterm effectiveness of interventions that target young children,
substantially reducing health care expenditures due to obesity in the near term will require implementation of
strategies that target both children and adults. We estimated that over the decade 2015-25, the beverage excise
tax would save $14.2 billion in net costs, primarily due to reductions in adult health care costs. Interventions that
can achieve nearterm health cost savings among adults and reduce childhood obesity offer policy makers an
opportunity to make long-term investments in children's health while generating short-term returns. These results
are consistent with previous research that estimated the potential health cost savings and health gains from
reducing childhood obesity, much of which resulted from preventing obesity during adulthood.34
Conclusion
Reversing the tide of the childhood obesity epidemic will require sustained effort across all levels of government
and civil society for the foreseeable future. To make these efforts effective and sustainable during a period of
constrained public health resources, policy makers need to integrate the best available evidence on the potential
effectiveness, reach, and cost of proposed obesity strategies to prioritize the highest-value interventions.
We found that a number of preventive interventions would have substantial population-level impacts and would be
cost-saving. An important question for policy makers is, why are they not actively pursuing cost-effective policies
that can prevent childhood obesity and that cost less to implement than they would save for society?
Our results also highlight the critical impact that existing investments in improvements to the school food
environment would have on future obesity prevalence and indicate the importance of sustaining these preventive
strategies. Furthermore, while many of the preventive interventions inchildhood do not providesubstantial health
care cost savings (because most obesity-related health care costs occur later, in adulthood), childhood
interventions have the best chance of substantially reducing obesity prevalence and related mortality and health
care costs in the long run.
The focus of action for policy makers should be on implementing cost-effective preventive interventions, ideally
ones that would have broad population-level impact. Particularly attractive are interventions that affect both
children and adults, so that near-term health care cost savings can be achieved by reducing adult obesity and its
health consequences, while laying the groundwork for long-term cost savings by also reducing childhood and
adolescent obesity. ?
This work was supported in part by grants from The JPB Foundation; The Robert Wood Johnson Foundation (Grant
No. 66284); the Donald and Sue Pritzker Nutrition and Fitness Initiative; and the Centers for Disease Control and
Prevention (Grant No. U48/DP001946), including the Nutrition and Obesity Policy Research and Evaluation
Network. This work is solely the responsibility of the authors and does not represent the official views of the
Centers for Disease Control and Prevention or any of the other funders.
Footnote
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childhood obesity interventions in pediatric primary care: a clusterrandomized trial. JAMA Pediatr.
2015;169(6):535-42.
34 Trasande L. How much should we invest in preventing childhood obesity? Health Aff(Millwood). 2010;
29(3):372-8.
AuthorAffiliation
Steven L. Gortmaker ([email protected]) is a professor of the practice of health sociology at the
Harvard T.H. Chan School of Public Health, in Boston, Massachusetts.
Y. Claire Wang is an associate professor at the Mailman School of Public Health, Columbia University, in New York
City.
Michael W. Long is an assistant professor at the Milken Institute School of Public Health, the George Washington
University, in Washington, DC.
Catherine M. Giles is a program manager at the Harvard T.H. Chan School of Public Health.
Zachary J. Ward is a programmer analyst at the Harvard T.H. Chan School of Public Health.
Jessica L. Barrett is a research assistant IV at the Harvard T.H. Chan School of Public Health.
Erica L. Kenney is a postdoctoral research fellow at the Harvard T.H. Chan School of Public Health.
Kendrin R. Sonneville is an assistant professor at the University of Michigan School of Public Health, in Ann Arbor.
Amna Sadaf Afzal is an assistant professor at the Albert Einstein College of Medicine, in New York City.
Stephen C. Resch is deputy director of the Center for Health Decision Science at the Harvard T.H. Chan School of
Public Health.
Angie L. Cradock is a senior research scientist at the Harvard T.H. Chan School of Public Health.
Appendix
Appendix
Appendix A1. Sugar-]sweetened Beverage (SSB) Excise Tax Intervention Specification and Background
Modeled Intervention
We modeled the effect of an specific excise tax of $0.01/oz of SSBs administered at the state level and
implemented nationally based on recent proposals under consideration by federal, state and local governments.1
SSBs include all beverages with added caloric sweeteners. The modeled excise tax does not apply to 100% juice,
milk products, or artificially-] sweetened beverages.
Background
Despite recent declines, SSB consumption in the United States remains high among children and adults.2
Observational studies and randomized controlled trials have linked SSB consumption to excess weight gain,
diabetes, and cardiovascular disease.3-4 The Dietary Guidelines for Americans, 2010 recommends that individuals
reduce SSB intake in order to manage their body weight.5 In 2009, the Institute of Medicine suggested taxing SSBs
as a potential local strategy to reduce consumption of calorie-dense, nutrient-poor foods.6
Assessment of Benefit
The impact of a $0.01/oz SSB tax on individual body mass index (BMI) was modeled based on the logic model in
Appendix Exhibit A1.1. Key model input parameters based on this logic model are described below and are detailed
in Appendix Exhibit A1. Means and 95% uncertainty intervals are based on 1,000 simulations drawn from
parameter-]specific distributions.
Impact of Tax on Price to Consumers
Consistent with economic theory and international evidence, we assumed that the full price of the excise tax would
be passed on to consumers.7-12 The expected percent increase in SSB price was estimated based on the average
national retail price of $0.059/ounce in 2012 reported by Powell et al.,13 which was inflated to $0.0612 in July
2014 dollars to be consistent with recent modeling of the cost-effectiveness of an SSB excise tax.14 The
$0.01/ounce excise tax would then result in a 16.3% price increase (0.0712/0.0612). We assumed that the tax rate
would be adjusted annually for inflation to maintain the 16.3% price increase throughout the ten-year modeling
time frame.
Price Elasticity of Demand for SSBs
We estimated the potential reduction in current SSB purchases due to the tax based on a systematic review of
recent estimates of the price elasticity of demand for SSBs by Powell et al.15 The review estimated a mean own-
]price elasticity of demand for SSBs weighted by SSB category consumption shares of -]1.21, ranging from -]3.87
to -]0.69.
Change in SSB Intake in Response to Excise Tax
We modeled current SSB consumption using age and sex-specific mean daily intake (oz) estimated from the first
day 24-hour dietary recall from the 2011-2012 National Health and Nutrition Examination Survey. The change in
individual intake was estimated by multiplying current intake by the 16.3% price increase and the sampled price
elasticity of demand sampled in each model iteration. On average, we estimated that the 16.3% price increase
would result in a 20% decrease in consumption from current levels.
Effect of change in SSB consumption on change in BMI
Based on a review of studies included in thirteen systematic reviews,16-]28 we estimated the impact of reductions
in SSB consumption on weight or BMI based on four large longitudinal studies in adults29-]32(0.21-]0.57 BMI
units/12-]ounce serving) and a double-]blind, placebo controlled randomized trial in youth (1.01 kg/8-]ounce
serving).33 These studies provide the best available evidence of the impact of a change in SSB consumption on
weight and BMI accounting for any compensatory changes in other dietary intake or physical activity.
Reach
The intervention reaches all youth and adults aged 2 and older in the US. In the first year, the intervention would
reach 307 million people.
Costs
We estimated the cost of the intervention based on administrative data provided in 2010 from two states
(Washington and West Virginia) that had existing or planned excise taxes on SSBs. The states required between
0.10 and 0.54 full-]time equivalent (FTE) government tax agent time per year per million residents to administer the
tax and between 0.24 and 0.35 FTE per year per million residents to conduct audits. We applied these per capita
costs nationally assuming no economies of scale and estimated salary costs from the 2014 Bureau of Labor
statistics for tax examiners, collectors and revenue agents (BLS Occupation: 13-]2081). We assumed that industry
would require equivalent time to comply with audits and file new tax statements and applied salary costs from the
2014 Bureau of Labor statistics for accountants and auditors (BLS Occupation: 13-]2011). We assumed that the
time to administer and conduct audits would be twice the annual rate during the first year of implementation.
Additional limited costs estimated included field audit direct costs and limited tax certification system operating
costs.
Appendix A1 References
1. Chaloupka, F.J., L.M. Powell, and J.F. Chriqui, Sugar-sweetened Beverage Taxes and Public Health: A Research
Brief. Minneapolis, MN: Robert Wood Johnson Foundation. Healthy Eating Research, 2009.
2. Kit BK, Fakhouri TH, Park S, Nielsen SJ, Ogden CL. Trends in sugar-sweetened beverage consumption among
youth and adults: 1999-2010. Am J Clin Nutr. 2013;98(1):180-188.
3. Malik, V.S., et al., Sugar-sweetened beverages and weight gain in children and adults: a systematic review and
meta-analysis. Am J Clin Nutr. 2013;98(4):1084-1102.
4. Chen, L., et al., Reducing consumption of sugar-sweetened beverages is associated with reduced blood pressure
a prospective study among United States adults. Circulation, 2010;121(22):2398-2406.
5. U.S. Department of Agriculture. U.S. DHHS. Dietary Guidelines for Americans, 2010. Washington, D.C.: U.S.
Government Printing Office, 2010.
6. IOM, Local Government Actions to Prevent Childhood Obesity. Washington, DC: National Academies Press, 2009.
7. Fullerton, D. and G. E. Metcalf (2002). Chapter 26 Tax incidence. Handbook of Public Economics. J. A. Alan and
F. Martin, Elsevier. Volume 4: 1787-1872.
8. Besley TJ, Rosen HS. Sales taxes and prices: an empirical analysis. Natl Tax Journal. 1999;52(2):157-178
9. Berardi N, Sevestre P, Tepaut M, Vigneron A. The impact of a 'soda tax' on prices: Evidence from French micro
data. Working paper No. 415. Paris, France: Banque de France, 20- http://ssrn.com/abstract=2192470
10. Bergman, U. Michael, and Niels Lynggård Hansen. Are excise taxes on beverages fully passed through to
prices? The Danish evidence. Working Paper, University of Copenhagen, Denmark, 2010.
http://web.econ.ku.dk/okombe/MBNLH.pdf
11. Guthrie A. Mexico soda tax dents Coke bottler's sales: Coca-Cola Femsa says Mexican sales volume has fallen
more than 5% this year. New York, NY: WSJ.com. Dow Jones and Company, Inc., 2014. updated February 26
http://online.wsj.com/articles/SB10001424052702303801304579407322914779400
12. Hahn R. The potential economic impact of a U.S. excise tax on selected beverages: A report to the American
Beverage Association. Washington, D.C.: Georgetown University, Center for Business and Public Policy, 2009.
13. Powell, L.M., et al. Sugar-sweetened beverage prices: Estimates from a national sample of food outlets.
Chicago, IL: Bridging the Gap Program, Health Policy Center, Institute for Health Research and Policy, University of
Illinois at Chicago, 2014.
14. Long MW, Gortmaker SL, Ward ZJ, Resch SC, Moodie ML, Sacks G, Swinburn BA, Carter RC, Claire Wang Y. Cost
Effectiveness of a Sugar-Sweetened Beverage Excise Tax in the U.S. Am J Prev Med. 2015 Jul;49(1):112-23.
15. Powell, L.M., et al., Assessing the potential effectiveness of food and beverage taxes and subsidies for
improving public health: a systematic review of prices, demand and body weight outcomes. Obes Rev.
2013;14(2):110-28.
16. Te Morenga L, Mallard S, Mann J. Dietary sugars and body weight: systematic review and meta-analyses of
randomised controlled trials and cohort studies. BMJ. 2013;346:e7492.
17. Malik VS, Popkin BM, Bray GA, Despres JP, Hu FB. Sugar-sweetened beverages, obesity, type 2 diabetes
mellitus, and cardiovascular disease risk. Circulation. 2010;121(11):1356-64.
18. Bray GA. Softdrink consumption and obesity: it is all about fructose. Curr Opin Lipidol. 2010;21(1):51-7.
19. Libuda L, Kersting M. Softdrinks and body weight development in childhood: is there a relationship? Curr Opin
Clin Nutr Metab Care. 2009;12(6):596-600.
20. Malik VS, Willett WC, Hu FB. Sugar-sweetened beverages and BMI in children and adolescents: reanalyses of a
meta-analysis. Am J Clin Nutr. 2009;89(1):438-9; author reply 9-40.
21. van Baak MA, Astrup A. Consumption of sugars and body weight. Obes Rev. 2009;10 Suppl 1:9-23.
22. Olsen NJ, Heitmann BL. Intake of calorically sweetened beverages and obesity. Obes Rev. 2009;10(1):68-75.
23. Gibson S. Sugar-sweetened softdrinks and obesity: a systematic review of the evidence from observational
studies and interventions. Nutr Res Rev. 2008;21(2):134-47.
24. Forshee RA, Anderson PA, Storey ML. Sugar-sweetened beverages and body mass index in children and
adolescents: a meta-analysis. Am J Clin Nutr. 2008;87(6):1662-71.
25. Harrington S. The role of sugar-sweetened beverage consumption in adolescent obesity: a review of the
literature. J Sch Nurs. 2008;24(1):3-
26. Drewnowski A, Bellisle F. Liquid calories, sugar, and body weight. Am J Clin Nutr 2007;85(3):651-61.
27. Vartanian LR, Schwartz MB, Brownell KD. Effects of softdrink consumption on nutrition and health: a
systematic review and meta-analysis. Am J Public Health. 2007;97(4):667-75.
28. Levy DT, Friend KB, Wang YC. A review of the literature on policies directed at the youth consumption of sugar
sweetened beverages. Adv Nutr. 2011;2(2):182S-200S.
29. Chen, L., et al., Reduction in consumption of sugar-sweetened beverages is associated with weight loss: the
PREMIER trial. Am J Clin Nutr. 2009. 89(5): p. 1299-306.
30. Mozaffarian, D., et al., Changes in diet and lifestyle and long-term weight gain in women and men. N Engl J
Med. 2011. 364(25):2392-404.
31. Palmer, J.R., et al., Sugar-sweetened beverages and incidence of type 2 diabetes mellitus in African American
women. Arch Intern Med. 2008;168(14):1487-92.
32. Schulze, M.B., et al., Sugar-sweetened beverages, weight gain, and incidence of type 2 diabetes in young and
middle-aged women. JAMA. 2004;292(8):927-34.
33. de Ruyter JC, Olthof MR, Seidell JC, Katan MB. A trial of sugar-free or sugar-sweetened beverages and body
weight in children. N Engl J Med. 2012;367(15):1397-406.
Appendix A2. Advertising Tax Deduction Intervention Specification and Background
Modeled Intervention
We modeled the effect of eliminating the tax deductibility of TV advertising costs for nutritionally poor foods and
beverages advertised to children and adolescents ages 2-]19. The intervention applied to TV programming
watched on traditional TV and to TV advertising aired during childrenfs programming defined as >35% child-
]audience share.1 We did not model the effect of changes in advertising exposure to adults or the impact of
changes in non-]TV forms of digital advertising and marketing. The change in tax code would be administered at
the federal level and would result in limited auditing/monitoring activities conducted by the Internal Revenue
Service.
Background
Children and adolescents view thousands of food-related TV ads each year.2 These ads include extensive
promotion of nutritionally poor foods and beverages that are high in calories; contain significant amounts of
sodium, saturated fat, and added sugars; and are low in nutrients.3-5 Children are particularly vulnerable to
persuasive messages because of their inability to identify persuasive intent,6 and exposure to TV food advertising
is associated with increased consumption of nutritionally poor foods among both children and adolescents.7-10
In light of the limited effectiveness of self-regulation, the U.S. Constitution's protection of marketing as
commercial speech, and the reluctance of the current U.S. government to regulate even minimal restrictions on
advertising,6,11 alternative regulatory approaches have been considered. Tax incentives and disincentives are
known to be powerful tools for promoting the health and well-]being of the population.12 Accordingly,
eliminating13 or amending14 the tax deduction available to food companies for the costs of advertising to children
has been proposed by Senators Blumenthal and Harkin15 and in Congress by Representative Rosa DeLauro (H.R.
2831).16
Assessment of Benefit
The impact of eliminating the tax subsidy of TV advertising costs for nutritionally poor foods and beverages
advertised to children and adolescents was modeled using daily hours of TV viewed as our measure of food
advertising exposure based on the logic model in Appendix Exhibit A2.1. Key model input parameters based on this
logic model are described below and are detailed in Appendix Exhibit A2.2. Means and 95% uncertainty intervals
are based on sampling 1,000 iterations from the defined distributions for each parameter.
Impact of Change in Federal Tax Code on Advertising Price
The model assumes an effective corporate income tax rate of -6%, which will increase advertisement prices by
14.4%.17 Using estimates from a national analysis of TV advertising and childhood obesity, which found the price
elasticity of demand for TV advertising to be 0.74 for ages 2-]9 and 0.61 for ages 10-]19, we calculated an expected
reduction in actual advertising.18e
Impact of Change in Advertising Price on Advertising Exposure
The model estimates that 89%-]96% of all food advertisements will be impacted and combines the tax rate and
elasticity estimates from Chou et al. to project a 10.7% reduction among children and an 8.8% reduction among
adolescents in advertisement exposure.4,5
Impact of Change in Advertising Exposure on BMI
To estimate the impact of change in advertising on change in BMI, we reviewed studies included in recently
completed systematic reviews and meta analyses19-23 to identify those meeting the following criteria: RCTs of
screen time interventions (screen time includes TV, videotapes, videogames, computer time) that manipulated
screen time but not other aspects of children's diet or physical activity; ages included were from 2-18; measured
change in weight, BMI z-score or BMI was a reported outcome; significant change in screen time was measured in
hours per day; minimum duration of the study was six months. We identified two RCTs that met these criteria,
including one study that found significant changes in BMI associated with changes in TV time.24 This 7-month
cluster randomized trial with 192 children led to relative reductions of 1.37 hours of screen time per day and -0.45
BMI units (P= 0.002), or a reduction of -0.33 kg/m2 per hour/day of screen time. Although not statistically
significant due to the small sample size (n=70), the only other study identified found comparable results in a
younger sample: -]0.33 kg/m2 per hour/day of screen time.25 Based on the literature, this model has
conservatively reduced estimates of reductions in BMI due to reductions in TV time by 25% to account for any
potential effects of increased physical activity.
Reach
An elimination of Tax Deductibility among Targeted Advertising has the potential to reach 74 million children, ages
2- 19 years in all 50 states and DC.
Costs
Costs related to processing and auditing were included for the new tax, but not for enacting. Overhead costs of the
tax system included administrative costs (e.g., tax audits, litigation) and personnel responsible for these
undertakings. The model assumed that 20-25% of the 44 food companies responsible for the majority of
expenditures for food and beverage marketing to children would be audited for compliance.26 The model assumed
that each audit would demand 0.25-0.75 full-time equivalent (FTE). The model assumed that the costs and labor
associated with tax compliance by the food and beverage industry are equal to the cost of administration reported
by the government. The model assumed that, industry-wide, the reduction in sales of poor quality food will be
offset by the increase in sales of other foods and that a loss in revenue by commercial broadcasters will likely be
offset by new advertising contracts for other products.27
Appendix A2 References
1. The Children's Food &Beverage Advertising Initiative. A report on compliance and progress during 2011.
Arlington, VA: Council of Better Business Bureaus; 20-
2. Where children and adolescents view food and beverage ads on TV: Exposure by channel and program. New
Haven, CT: Yale Rudd Center for Food Policy and Obesity; 2013.
3. Institute of Medicine (US) Committee on Food Marketing and the Diets of Children and Youth. Food marketing to
children and youth threat or opportunity? Washington, DC: National Academies Press; 2006
http://www.iom.edu/Reports/2005/Food-]Marketing-]to-]Children-]and-] Youth-]Threat-]or-]Opportunity.aspx.
Accessed August 9, 2011.
4. Powell LM, Szczypka G, Chaloupka FJ, Braunschweig CL. Nutritional content of television food advertisements
seen by children and adolescents in the United States. Pediatrics. 2007;120(3):576-]583.
5. Powell LM, Schermbeck RM, Chaloupka FJ. Nutritional content of food and beverage products in television
advertisements seen on children's programming. Childhood Obesity. 2013; 9(6):524-]531.
6. Harris J, GraffS. Protecting Children From Harmful Food Marketing: Options for Local Government to Make a
Difference Prev Chronic Dis. 2011; 8(5):A92.
7. Wiecha JL, Peterson KE, Ludwig DS, Kim J, Sobol A, Gortmaker SL. When Children Eat What They Watch: Impact
of Television Viewing on Dietary Intake in Youth. Arch Pediatr Adolesc Med. April 1, 2006 2006; 160(4):436-]442.
8. Andreyeva T, Kelly IR, Harris JL. Exposure to food advertising on television: Associations with children's fast
food and softdrink consumption and obesity. Economics &Human Biology. 2011; 9(3):221-]233.
9. Mehta K, Coveney J, Ward P, Magarey A, Spurrier N, Udell T. Australian children's views about food advertising
on television. Appetite. 2010; 55(1):49-]55.
10. Falbe J, Willett WC, Rosner B, Gortmaker SL, Sonneville KR, Field AE. Longitudinal relations of television,
electronic games, and digital versatile discs with changes in diet in adolescents. The American Journal of Clinical
Nutrition. October 1, 2014 2014; 100(4):1173-] 1181.
11. Speers SE, Harris JL, Schwartz MB. Child and Adolescent Exposure to Food and Beverage Brand Appearances
During Prime-]Time Television Programming. American journal of preventive medicine. 2011; 41(3):291-]296.
12. Gostin L. Public Health Theory and Practice in the Constitutional Design. Health Matrix Clevel. 2001; 11 265-
]326.
13. Chou S-]Y, Rashad I, Grossman M. Fast-]Food Restaurant Advertising on Television and Its Influence on
Childhood Obesity. J Law Econ. 2008; 51(4):599-]618.
14. Fulwider V. Future benefits? Tax policy, advertising, and the epidemic of obesity in children. J Contemp Health
Law Policy. 2003; 20(1):217-]242.
15. S.2342. To amend the Internal Revenue Code of 1986 to protect children's health by denying any deduction for
advertising and marketing directed at children to promote the consumption of food of poor nutritional quality,
2013-]2014.
16. H.R.2831. To amend the Internal Revenue Code of 1986 to protect children's health by denying any deduction
for advertising and marketing directed at children to promote the consumption of food of poor nutritional quality,
2013-2014.
17. Report to congressional requesters. Corporate tax income: effective tax rates can differ significantly from the
statutory rate. Washington, DC: United States Government Accountability Office; 2013.
18. Chou SY, Rashad I, Grossman M. Fast-food restaurant advertising on television and its influence on childhood
obesity. Journal of Law &Economics. Nov 2008; 51(4):599-618.
19. The Guide to Community Preventive Services. Obesity prevention and control: Behavioral interventions that aim
to reduce recreational sedentary screen time among children. Washington, DC: Department of Health and Human
Services; 2009.
20. Tremblay M, LeBlanc A, Kho M, et al. Systematic review of sedentary behaviour and health indicators in school-
aged children and youth. International Journal of Behavioral Nutrition and Physical Activity. 2011;8(1):98.
21. LeBlanc AG, Spence JC, Carson V, et al. Systematic review of sedentary behaviour and health indicators in the
early years (aged 0-4 years). Applied Physiology, Nutrition, and Metabolism. 2012;37(4):753-772.
22. van Grieken A, Ezendam N, Paulis W, van der Wouden J, Raat H. Primary prevention of overweight in children
and adolescents: a meta-analysis of the effectiveness of interventions aiming to decrease sedentary behaviour.
International Journal of Behavioral Nutrition and Physical Activity. 2012; 9(1):61.
23. Wang Y, Wu Y, Wilson R, et al. Childhood Obesity Prevention Programs: Comparative Effectiveness Review and
Meta-Analysis. Comparative Effectiveness Review No. 115. Agency for Healthcare Research and Quality.
2013.;Publication No. 13-EHC081-EF.
24. Robinson TN. Reducing Children's Television Viewing to Prevent Obesity: A Randomized Controlled Trial.
JAMA. 1999; 282(16):1561-1567.
25. Epstein LH, Roemmich JN, Robinson JL, et al. A randomized trial of the effects of reducing television viewing
and computer use on body mass index in young children. Arch Pediatr Adolesc Med. 2008; 162(3):239-245.
26. Federal Trade Commission. Marketing food to children and adolescents: a review of industry expenditures,
activities, and self-regulation. Washington, DC: Federal Trade Commission;2008.
27. BauhoffS. The effect of school district nutrition policies on dietary intake and overweight: A synthetic control
approach. Econ Hum Biol. 2014 Jan; 12:45-55.
28. The Nielsen Company. State of the media: The cross-platform report. Quarter 1, 20- 20-
29. Zimmerman FJ, Bell JF. Associations of Television Content Type and Obesity in Children. Am J Public Health.
February 1, 2010 2010; 100(2):334-340.
30. Federal Trade Commission. A review of food marketing to children and adolescents: A follow-up report.
Washington, DC: 20-
Appendix A3: Microsimulation Model Description
We developed a stochastic, discrete-time, individual-level microsimulation model of the population in the United
States to simulate the experience of the population in the United States from 2015-2025. Key input parameters for
the model are detailed in Appendix Exhibit A3.1 and are described below.
Population Baseline Characteristics
Demographics
We simulated a population of 1,000,000 individuals using a simple random sample from the 2010 U.S. Census at
the census tract level and initiated the simulation in 2010. Using non-] parametric statistical matching,1-]3 we
assigned additional demographic variables (Exhibit A3.1) to individuals by sampling observations with
replacement from the 2008-]2012 American Community Survey (ACS) 5-]Year Estimates conditional on census
tract, age, sex and race/ethnicity. The matching algorithm employed dynamic strata definitions to achieve a
minimum sample size within each strata of the datasets used to assign additional data to the simulated
population.
Body Mass Index and Dietary Behavior
The microsimulation was designed to provide valid state-]level estimates of population obesity and related
mortality and healthcare expenditures. To capture state-]level variation in height and weight within demographic
subgroups, using the same non-]parametric matching techniques, adults sampled from the 2010 U.S. Census with
household income data from ACS were matched to individuals from the 2011 Behavioral Risk Factor Surveillance
System (BRFSS) to assign self-reported height and weight conditional on demographic variables and state
residence. After excluding observations with missing demographic variables and self-reported height and weight
(n=99,912) and excluding pregnant women because of possible effects on weight (n=2,758), data were sampled
with replacement proportion to sampling weights from 401,738 individuals to assign self-reported height and
weight to individuals in the simulation model.
Data on state-specific child and adolescent parent-reported height and weight from the 2003-2004 and 2007-2008
National Survey on Children's Health (NSCH) were used to incorporate state-level variation in childhood height and
weight conditional on demographic variables. The NSCH is a national and state-representative telephone survey
covering a range of children's health data conducted by the Centers for Disease Control and Prevention's National
Center for Health Statistics. Additional detail on the sampling methodology has been reported previously.4, 5 Data
from both waves of the surveys were available for 213,900 responses. After excluding observations with missing
demographic variables needed for the matching process (n=29,235) and those missing parent-reported height and
weight (n=51,452), 133,213 responses were used in this study's analysis. Sample weights were pooled across
survey rounds. Data on height and weight were not available in the 2011-2012 NSCH public use datasets, although
derived BMI values are available based on parent self-reported height and weight for participants aged 10-17 years.
Objectively-measured height and weight and selected dietary intake variables were assigned to individuals in the
simulated population by matching to individuals sampled with replacement from the 2005-2010 National Health
and Nutrition Examination Survey (NHANES) conditional on age, sex, race/ethnicity, household income and self or
parent-]reported height and weight from BRFSS and NSCH. After excluding observations with missing data for the
variables of interest (n=2885) and excluding pregnant women (n=415), the final sample from NHANES included
15,018 respondents aged 18 and older. After excluding individuals with missing demographic data (n=356) and
those with missing measured height and weight (n=224), data on height and weight were available from 9,377
individuals aged 2-]17. Sample weights for the pooled dataset were calculated following the NHANES analytic
guidelines.6 In contrast to estimates based on self-]reported BRFSS data, the resulting population closely
reproduced the body mass index (BMI) distribution, obesity prevalence and severe obesity prevalence of the U.S.
based on objectively-]measured data from NHANES.7 State-]level estimates of childhood obesity were validated
against objectively-]measured data from states that conducted a census of childhood obesity among
schoolchildren.8
Lifetime Height and Weight Trajectories
Building on previous studies,9 we developed a nationally-]representative set of lifetime height and weight
trajectories by combining objectively-]measured height and weight trajectories from the following longitudinal
cohort studies: National Longitudinal Survey of Youth (1986-]2010; n=9,402), the National Longitudinal Study of
Adolescent to Adult Health (Add Health) (1994-]2008; n=4,972), the Early Childhood Longitudinal Study-
]Kindergarten (1998-] 2007; n=15,180), the Panel Survey on Income Dynamics (n=4,792), and the NHANES I
Epidemiologic Follow-]up Study (NHEFS, n=7,221). For children and adolescents, we used CDC growth charts to
inform age-]specific, non-]linear interpolation between observed measurements of height and weight. For adults
(ages >20), height was assumed to remain constant and weight was linearly interpolated between observations.
Because none of the nationally-]representative height and weight trajectories includes data across the lifecourse,
synthetic trajectories were created by combining trajectories from the original datasets. We matched trajectories
conditional on age, sex, race/ethnicity, and overlapping segments of the underlying height and weight trajectories
using Bayesian optimization methods to minimize the distance between overlapping segments of matched
trajectories.10
While the nationally-]representative datasets capture individual heterogeneity in lifetime height and weight
trajectories, the resulting BMI distribution from these historical trajectories did not correspond to current
population estimates due to secular changes in obesity. To adjust for this difference, we used linear regression to
estimate recent time trends in age and sex-] specific mean BMI and obesity prevalence using data from the 1999-
]2012 NHANES. These estimates were used to calibrate the synthesized height and weight trajectories to projected
age/sex specific mean BMI and obesity prevalence from 2010-]2030 using a simulated annealing directed search.
The resulting height and weight trajectory sets thus capture the substantial heterogeneity in individual height and
weight changes while representing recent age and sex-] specific trends in BMI. We selected 50 good-]fitting
parameter sets from the calibration and generated 50 unique virtual populations to account for uncertainty in both
the statistical matching of cross-]sectional population data and the projections of future obesity trends.
Baseline Smoking Prevalence and Individual Smoking Trajectories
Baseline individual self-]reported smoking status was assigned using data from the same individuals matched
from the 2011 BRFSS when assigning self-]reported height and weight to individuals in the simulated population.
To model individual smoking trajectories, age and sex-] specific smoking initiation and cessation rates were
applied using the most recent cohort-] specific estimates based on U.S. National Health Interview Surveys
conducted from 1965 to 2009.11
Open Population Characteristics
Each cycle, the model simulates incoming infants to create an open population based on the number of births per
year projected in the U.S. Census 2014 National Population Projections. Race-]specific projections were used to
account for differences in fertility. Incoming infants were bootstrapped among existing model individuals of the
same race in order to maintain the covariance of demographic, anthropometric, and behavioral characteristics.
Mortality
Natural History Mortality
In each model cycle (i.e. every month), all-]cause mortality was simulated using the 2010 U.S. sex and
race/ethnicity-]specific period life tables. In the baseline scenario (i.e. no intervention), mortality rates were
adjusted simultaneously for smoking and BMI using published age-]standardized mortality rates for 313,000 men
and 214,000 women aged 50-]71 years followed for 10 years in the NIH-]AARP Diet and Health Study.12 Sex, age,
and race/ethnicity-]specific mortality rates were adjusted by BMI category (<18.5, 18.5-]20.9, 21.0-] 23.4,23.5-]24.9,
25.0 -]26.4,26.5-]27.9, 28.0-]29.9, 30-]34.9, 35.0-]39.9, 40+) and smoking status (current smoker, former smoker,
never smoker) for adults age 30-]100. These baseline mortality rates do not adjust for confounding of the observed
relationship between BMI, smoking and mortality. Instead, they represent the expected mortality for each of these
subgroups.
Mortality ShiftDue to Intervention Impact on BMI
To estimate the causal effect of reductions in BMI due to modeled interventions, individual-]level mortality rates
were shifted from baseline using published estimates of the hazard of mortality due to excess BMI from the
Prospective Studies Collaborative. The analysis was based on data from 57 prospective studies with 894,576
participants. After controlling for age, sex and baseline smoking status and excluding the first five years of follow-
]up to account for undiagnosed disease that may bias the relationship between BMI and mortality, the authors
found that each 5 BMI unit increase within the range of 25-]50 BMI units was associated with a 30% higher hazard
ratio for death (HR: 1.29; 95% CI: 1.27-]1.32).13 The estimated HR by age group was used to shiftindividual-]level
mortality risk due to BMI reductions compared to the individualfs risk in the baseline model.
Modeling the Time Course of Intervention Impact on BMI
The impact of each of the modeled interventions on individual BMI was estimated based on the best available
evidence linking the policy or program to change in BMI, weight, daily energy intake or physical activity using a
logic model developed for each intervention. For interventions that included evidence on the impact of the
intervention on BMI or weight, the duration of the study follow-]up was used to model the time course of weight
change for individuals receiving the intervention in the simulated population.
For interventions that resulted in a change in energy balance due either to reduced energy consumption or
increased energy expenditure, the full steady-]state impact of these interventions on individual weight was
modeled after 24 months for youth and 36 months for adults. The modeled time course of energy balance to
weight change is based on energy balance models developed by Hall et al.15, 16 If individuals in the simulated
population were not exposed to the intervention for the entire time needed to reach full effect, they were assigned
a portion of the full effect based on the duration of intervention received. Individuals were assumed to maintain the
full effect of the intervention relative to their baseline weight trajectories for the remainder of the ten-]year analytic
timeframe.
Cost Evaluation
We developed a cost evaluation protocol consistent with general practice in cost- effectiveness projects and
building on the work of the Assessing Cost-Effectiveness (ACE) studies. 17-20 All costs are reported in 2014
dollars with future costs discounted at 3% annually. Non-healthcare cost inputs were adjusted to 2014 dollars
using the Consumer Price Index.
Intervention Costing
The costing protocol entails three steps to evaluating the incremental cost of each of the modeled intervention: 1)
Identification of the types of resources used; 2) Measurement of the quantity of each resource used per person,
per state, or nationally for each model time period; and 3) Valuation of resource utilization in monetary terms. The
model employs a modified societal perspective that includes all opportunity costs regardless of payer except for
costs in time and other resources that program participants incur in order to participate in an intervention
program. Capital costs were amortized over their useful life for each intervention. Labor costs were based on the
2014 state-]specific annual or hourly wages by occupation from the Bureau of Labor Statistics. A fringe rate of
45.56% was applied to all labor costs based on data from the U.S. Bureau of Labor on the proportion of total
compensation due to wages. A description of the cost inputs for each modeled intervention is included in
Appendices A1-]A2 and A4 through A8.
Healthcare Costs
We estimated the annual total medical expenditures per person in the simulated population by obesity status
based on a published analysis of data from the 2001-]2003 Medical Expenditure Panel Surveys.21 The authors
estimated the incremental cost of healthcare among children and adults with obesity after controlling for age,
gender, race/ethnicity, insurance status and census region. The incremental cost for children 6-]19 was estimated
to be $220. Incremental costs for adults increased with age from $240 at age 20 to $2,147 for ages 74 and older.
Costs were inflated to 2014 dollars using the Medical Care Consumer Price Index. Healthcare cost savings were
estimated based on the lower annual age and sex-]specific obesity prevalence due to each intervention. The actual
inputs are described in Table A.3.2.
Model Outcomes
Over the 10 year period 2015-]2015, the model calculates a range of outcomes for each intervention scaled to the
U.S. 2010 Census population of 309 million individuals, including:
* Total and annualized intervention costs
* First year and total intervention reach
* Intervention cost per benefiting individual
* Mean BMI reduction among individuals in the benefiting population
. Intervention cost per BMI unit reduced per benefiting person
. Obesity-]related healthcare cost savings
. Net costs including intervention costs and healthcare cost savings
. Life years gained
. Years with obesity prevented
. Reduction in childhood obesity prevalence in the 2025 simulated population
. Cases of childhood obesity prevented in the 2025 simulated population
. Net cost per year with obesity prevented
. Net cost per case of childhood obesity prevented
. Healthcare cost savings per 1$ invested
Uncertainty Analysis
The model incorporates uncertainty by running 1,000 iterations of probabilistic sensitivity analysis around a range
of overall and intervention-]specific parameters. In each iteration, a population was sampled from the 50 generated
unique populations to account for baseline uncertainty. Incremental reductions in population obesity prevalence
and related reductions in mortality, morbidity and healthcare costs can then be calculated compared to the
selected populationfs baseline indicators.
Intervention-]specific model parameters were sampled from distributions in 1,000 model iterations, with correlation
induced between related recruitment, effectiveness, and cost parameters. Intervention outcomes are reported with
95% Uncertainty Intervals based on these 1,000 model iterations. Key model input parameters for each
intervention are included in Appendix Exhibits A1.2-]A2.2 and A3.2 through A8.2.
The Microsimulation Model compared to Markov Cohort Simulation Models
As noted in the main paper, in prior publications we used a Markov cohort simulation model to estimate the impact
of two of the interventions modeled here: The SSB Excise Tax and the Ad Tax Deduction.(22-]24) The cohort model
is more limited than a population-]based microsimulation in a number of ways:(25) in its ability to model
heterogeneity of individual differences, exposure to the intervention, the accuracy of modeling trajectories of BMI
over the lifecourse, and the inability to calculate population estimates for specific years. With the microsimulation
model we are able to estimate the number of cases of obesity prevented. For these interventions, the cost per BMI
unit reduction estimates were similar under both modeling approaches, and were cost-]saving. The
microsimulation also allows much more potential for future modeling, including combining interventions.
Appendix A3 References
1. D'Orazio M. Statistical Matching and Imputation of Survey Data with StatMatch. StatMatch R package vignette
[Internet]. 2014. Available from: http://cran.r-]
project.org/web/packages/StatMatch/vignettes/Statistical_Matching_with_StatMatch.pdf.
2. D'Orazio M, Di Zio M, Scanu M. Statistical matching : theory and practice. Chichester, England ; Hoboken, NJ:
Wiley; 2006. x, 256 p. p.
3. Vantaggi B. Statistical matching of multiple sources: A look through coherence. International Journal of
Approximate Reasoning. 2008;49:701-]11.
4. Blumberg SJ, Foster EB, Frasier AM, Satorius J, Skalland BJ, Nysse-]Carris KL, et al. Design and operation of the
National Survey of Children's Health, 2007. Vital and health statistics Ser 1, Programs and collection procedures.
2012(55):1-]149. Epub 2012/07/28.
5. Blumberg SJ, Olson L, Frankel MR, L. O, Srinath KP, Giambo P. Design and operation of the National Survey of
Children's Health, 2003. Vital Health Stat 2005;1(43):1-]124.
6. Statistics NCfH. When and How to Construct Weights When Combining Survey Cycles. [cited 2014]; Available
from: http://www.cdc.gov/nchs/tutorials/NHANES/SurveyDesign/Weighting/Task2.htm.
7. Ward ZW, Long MW, Resch SC, Gortmaker SL, Cradock AL, Hsiao A, Wang YC. Redrawing the US Obesity
Landscape: Bias-]corrected estimates of state-]specific adult obesity prevalence. Presented at American Public
Health Association, New Orleans, November 2014.
8. Blondin KJ, Ward Z, Resch SC, Cradock AL, Wang YC, Hsiao A, Gortmaker SL, Long, ML. Improving state obesity
surveillance: A review of current practices and recommendations for change.Presented at American Public Health
Association, New Orleans, November 2014.
9. Goldhaber-]Fiebert JD, Rubinfeld RE, Bhattacharya J, Robinson TN, Wise PH. The utility of childhood and
adolescent obesity assessment in relation to adult health. Medical decision making : an international journal of the
Society for Medical Decision Making. 2013;33(2):163-] 75. Epub 2012/06/01.
10. Resch S, Ward ZJ, Long MW, Goldhaber-]Fiebert J, Wang YC, Gortmaker SL. Using synthetic growth trajectories
to predict childhood obesity trends at the individual and population level. Presented at American Public Health
Association, New Orleans, November 2014.
11. Holford TR, Levy DT, McKay LA, Clarke L, Racine B, Meza R, et al. Patterns of birth cohort-]specific smoking
histories, 1965-]2009. American journal of preventive medicine. 2014;46(2):e31-]7. Epub 2014/01/21.
12. Adams KF, Schatzkin A, Harris TB, Kipnis V, Mouw T, Ballard-]Barbash R, et al. Overweight, obesity, and
mortality in a large prospective cohort of persons 50 to 71 years old. The New England journal of medicine.
2006;355(8):763-]78. Epub 2006/08/24.
13. Whitlock G, Lewington S, Sherliker P, Clarke R, Emberson J, Halsey J, et al. Body-]mass index and cause-
]specific mortality in 900 000 adults: collaborative analyses of 57 prospective studies. Lancet.
2009;373(9669):1083-]96. Epub 2009/03/21.
14. Muennig P, Lubetkin E, Jia H, Franks P. Gender and the burden of disease attributable to obesity. Am J Public
Health. 2006;96(9):1662-]8. Epub 2006/07/29.
15. Hall KD, Sacks G, Chandramohan D, Chow CC, Wang YC, Gortmaker SL, et al. Quantification of the effect of
energy imbalance on bodyweight. Lancet. 2011;378(9793):826-] 37. Epub 2011/08/30.
16. Hall KD, Butte NF, Swinburn BA, Chow CC. Dynamics of childhood growth and obesity: development and
validation of a quantitative mathematical model. The lancet Diabetes &endocrinology. 2013;1(2):97-105. Epub
2013/12/19.
17. Drummond M, Scuplher M, Torrance G, O'Brien B, Stoddard G. Methods for the economic evaluation of health
care programmes. Oxford: Oxford University Press; 2005.
18. Gold MR, Siegel JE, Russell LB, Weinstein MC. Cost-effectiveness in Health and Medicine: Oxford University
Press; 1996.
19. Carter R, Moodie M, Markwick A, Magnus A, Vos T, Swinburn B, et al. Assessing Cost- Effectiveness in Obesity
(ACE-Obesity): an overview of the ACE approach, economic methods and cost results. BMC Public Health.
2009;9:419.
20. Vos T, Carter R, Doran C, Anderson I, Lopez A, A W. ACE-Prevention Project 2005-09 Economic Evaluation
Protocol September 2007.
21. Finkelstein EA, Trogdon JG. Public health interventions for addressing childhood overweight: Analysis of the
business case. American Journal of Public Health. 2008;98(3):411-5.
22. Gortmaker SL, Long MW, Resch SC, Ward ZJ, Cradock AL, Barrett JL, Wright DR, Sonneville KR, Giles CM, Carter
RC, Moodie ML, Sacks G, Swinburn BA, Hsiao A, Vine S, Barendregt J, Vos T, Wang YC. Cost Effectiveness of
Childhood Obesity Interventions: Evidence and Methods for CHOICES. Am J Prev Med. 2015 Jul;49(1):102-11.
23. Long MW, Gortmaker SL, Ward ZJ, Resch SC, Moodie ML, Sacks G, Swinburn BA, Carter RC, Claire Wang Y. Cost
Effectiveness of a Sugar-Sweetened Beverage Excise Tax in the U.S. Am J Prev Med. 2015 Jul;49(1):112-23.
24. Sonneville KR, Long MW, Ward ZJ, Resch SC, Wang YC, Pomeranz JL, Moodie ML, Carter R, Sacks G, Swinburn
BA, Gortmaker SL. BMI and Healthcare Cost Impact of Eliminating Tax Subsidy for Advertising Unhealthy Food to
Youth. Am J Prev Med. 2015 Jul;49(1):124-34.
25. Ethgen O, Standaert B. Population- versus cohort-based modelling approaches. Pharmacoeconomics. 2012
Mar;30(3):171-81.
Appendix A4. Restaurant Menu Calorie Labeling Intervention Specification and Background Modeled Intervention
We modeled the effect on body mass index (BMI) of the final federal menu labeling regulations implemented under
section 4205 of the Patient Protection and Affordable Care Act of 2010.1 The final rule issued by the U.S. Food and
Drug Administration (FDA) in November 2014 requires that chain restaurants and similar retail food
establishments with 20 or more locations provide calories for standard menu items on menus and menu boards
along with a succinct statement concerning suggested daily caloric intake effective December 1, 2016.2
Background
In 2007-2008, fast food and full-service restaurants accounted for 14% of total energy among children and 24% of
total energy intake among adolescents and adults.3 The consumption of fast food and food away from home has
been associated with lower diet quality and higher body weight.4 The Dietary Guidelines for Americans, 2010
recommends reviewing posted calorie content at restaurants before eating as a strategy to reduce excess caloric
intake when consuming foods prepared away from home.5
Assessment of Benefit
The impact of federal restaurant menu calorie labeling on BMI was modeled based on the logic model in Appendix
Exhibit A4.1. Key model input parameters based on this logic model are described below and are detailed in
Appendix Exhibit A4.2. Means and 95% uncertainty intervals are based on 1,000 simulations drawn from
parameter-]specific distributions.
Meals per Week Impacted by Restaurant Menu Calorie Labeling
We modeled the individual frequency of meals consumed away from home based on data from the 2007-]2010
National Health and Nutrition Examination Survey (NHANES) Diet Behavior and Nutrition Questionnaires. See the
Microsimulation Model appendix for additional detail on how dietary variables from NHANES were matched to
individuals in the model. In line with the FDAfs preliminary and final regulatory impact analyses, we assumed that
95% of meals away from home were in restaurants and that 73% of all restaurant meals would be in chain
restaurants subject to the regulations.6-]7 Therefore, we assumed that 69% of all meals away from home based on
the NHANES questionnaire were would be impacted by restaurant menu calorie labeling. We did not estimate any
reduction in calories from meals away from home purchased in grocery stores, convenience stores or other
settings.
Impact of Restaurant Menu Calorie Labeling on Calories Purchased per Meal
We modeled the impact of restaurant menu calorie labeling on the calories purchased per restaurant meal based
on the summary effect in a recently published systematic review and meta-]analysis of the impact of restaurant
calorie menu labeling.8 The review found that customers reduced calories ordered or purchased per meal by 7.63
calories (95% CI: -]21.02, 5.76) based on six studies conducted in restaurant settings with control conditions.
Lacking information on heterogeneity of this effect size by age or demographic variables, we applied the same per
meal calorie reduction to all individuals in the simulation model.
Impact of per Meal Calorie Reductions on BMI
We assumed that changes in calories ordered and purchased would result in equivalent reductions in consumption
and that there would be no compensation for the small reduction in calories during meal at other times of the day,
which is consistent with the findings of an experiment involving menu labeling with a daily anchor statement.9 We
translated the resulting reduction in daily caloric intake into changes in body weight and BMI using methods
described in the Microsimulation Model appendix.
Reach
We evaluated the impact of the regulations on all children and adults aged 2 and older. The intervention would
reach 307 million people during the first year of implementation.
Cost
We based our evaluation of the cost of implementation on the FDA's final regulatory impact analysis.7 We revised
the FDA's assumptions as following:
* We included 10 FTE labor costs at the FDA to manager roll-]out of the regulations
* We assumed that restaurants would choose the least expensive nutritional analysis consistent with the
regulations such that each menu item analyzed would require a nutrition database fee ($56) and four hours of
dietitian time (BLS Occupation Code: 29-1031). This is consistent with the lower bound costing used by the FDA,
but one quarter of the cost of the laboratory analysis that the FDA used to assess the upper bound of the
uncertainty around nutritional analysis costs in their analysis.
* We assumed that all restaurants and other outlets nationally would incur costs of implementation regardless of
previous state or local regulations in order to align our cost estimates with benefits estimated nationally
* We included the cost of local public health department monitoring to ensure compliance, which we estimated
would require 229 FTEs of Public Health Inspectors (BLS Occupation Code: 13-]1041) nationally on an annual basis
based on the time cost of public health inspection per resident required to implement menu labeling requirements
in New York City
Appendix A4 References
1. Food labeling: Nutrition labeling of standard menu items in restaurants and similar retail food establishments,
final rule, 79 Federal Register 71155 (2014).
2. Food Labeling; Nutrition Labeling of Standard Menu Items in Restaurants and Similar Retail Food
Establishments; Extension of Compliance Date, 80 Federal Register 39675 (2015).
3. Powell LM, Nguyen BT, Han E. Energy intake from restaurants: demographics and socioeconomics, 2003-]2008.
Am J Prev Med. 2012; 43(5):498-]504.
4. Mesas AE, Munoz-]Pareja M, Lopez-]Garcia E, Rodriguez-]Artalejo F. Selected eating behaviours and excess body
weight: a systematic review. Obes Rev. 2012; 13(2):106-]135.
5. U.S. Department of Agriculture and U.S. Department of Health and Human Services. Dietary Guidelines for
Americans, 2010. Washington, D.C.: U.S. Government Printing Office, 2010.
6. Food labeling: nutrition labeling of standard menu items in restaurants and similar retail food establishments
notice of proposed rulemaking; preliminary regulatory impact analysis: FDA: FDA-]2011-]F-]0172. Washington, DC.
Food and Drug Administration, Department of Health and Human Services, 2011.
7. Food labeling: nutrition labeling of standard menu items in restaurants and similar retail food establishments;
final regulatory impact analysis: FDA-]2011-]F-]0172. Washington, DC. Food and Drug Administration, Department
of Health and Human Services, 2014.
8. Long MW, Tobias DK, Cradock AL, Batchelder H, Gortmaker SL. Systematic review and meta-]analysis of the
impact of restaurant menu calorie labeling. Am J Public Health. 2015; 105(5):e11-]e24.
9. Roberto CA, Larsen PD, Agnew H, Baik J, Brownell KD. Evaluating the impact of menu labeling on food choices
and intake. Am J Public Health. 2010; 100(2):312-]318
Appendix A5. Nutrition Standards for School Meals Intervention Specification and Background
Modeled Intervention
We modeled the effect of implementation of the federal nutrition standards for school meals for all grade levels. As
required by the Healthy, Hunger-]Free Kids Act of 2010, in January 2012 the USDA released a final rule updating
nutrition standards for school meals for the first time in 15 years,1 based largely on recommendations made by
the Institute of Medicine.2 The new standards went into effect in the 2012-]2013 school year and required schools
to increase the availability of fruits, vegetables, whole grains, and fat-]free and low-]fat milk; reduce levels of
sodium, saturated and trans fats; and for the first time set minimum and maximum calorie levels. All changes
except for sodium standards were implemented by the 2014-]15 school year.
Background
The USDA National School Lunch Program (NSLP) and School Breakfast Program (SBP) play a major role in
children's diets, providing up to half of the daily calories for over 30 million children at lunch and 13 million children
at breakfast each school day.3 Nearly all public schools participate in the NSLP and most (79%) participate in the
SBP.4 The programs aim to provide nutritious meals to children and youth, in accordance with national nutrition
guidance.
Assessment of Benefit
The impact of the school meal nutrition standards on BMI was modeled based on the logic model in Appendix
Exhibit A5.1. We used evidence from one natural experimental cross-] sectional study5 evaluating the difference in
weight status by school meal eligibility among 4,870 8th grade students residing in states with nutrition standards
exceeding the 1995 USDA standards (the last revision of the standards before 2012) compared to those whose
laws did not exceed USDA standards. The study found that the adjusted difference in mean BMI percentile
between students who obtained free/reduced price lunches at school was lower than those who did not obtain
lunch at school in states that exceeded USDA standards compared with those who did not (B -]11.0; 95% CI -]17.7, -
]4.3), and for students who obtained full price lunches at school the difference was smaller and not significant (B -
]6.0; 95% CI -]-7, 0.6).5 Corresponding differences in BMI units (kg/m2, not published in the manuscript) by gender
were obtained from the lead author (D. Taber, personal communication, June 8, 2015). Key model input parameters
are detailed in Appendix Exhibit A5.2.
Reach
The intervention reaches children and youth in grades kindergarten through 12 who attend public schools
participating in the NSLP and obtain meals reimbursable through the NSLP. Students are categorized according to
meal eligibility status, with on average 48% eligible for free or reduced price meals (range 26-]71% by state) and
52% eligible for full price meals.7 We estimate that 89% of free or reduced price meal eligible students and 35% of
full price meal eligible students participate in school meals, based on meal participation rates3 and the proportion
of all students in each meal eligibility category.
Costs
We estimated the cost of the intervention based on cost analyses done by the federal government in conjunction
with the passage of the regulation. We estimate that implementation of the intervention requires additional state
agency administrative labor for providing ongoing training and technical assistance, as well as coordinated review
effort and compliance monitoring, at a cost of $9.4 million per year.1 School districts would pay an additional
$414.8 million in food costs and $400 million in food service labor costs per year.1,8 The federal government
would spend an additional $396 million per year in reimbursements for meal costs at the 6 cents higher rate for
compliant programs8 and $25 million per year to provide grants to school districts for purchasing kitchen
equipment.9
Appendix A5 References
1. U.S. Department of Agriculture. Nutrition Standards in the National School Lunch and School Breakfast
Programs, final rule, 7 CFR Parts 210 and 220. Vol 77. Washington, D.C.: Federal Register; 2012:4088-]4167.
2. Institute of Medicine. School Meals: Building Blocks for Healthy Children. Washington, D.C.: Institute of
Medicine; 2010.
3. U.S. Department of Agriculture, Food and Nutrition Service. Child Nutrition Tables.
http://www.fns.usda.gov/pd/child-]nutrition-]tables. Accessed May 18, 2015.
4. May L, Standing K, Chu A, Gasper J, Rile J. Special Nutrition Program Operations Study: State and School Food
Authority Policies and Practices for School Meals Programs School Year 2011-]- Project Officer: John R. Endahl.
Prepared by Westat for the U.S. Department of Agriculture, Food and Nutrition Service; March 2014.
5. Taber DR, Chriqui JF, Powell L, Chaloupka FJ. Association between state laws governing school meal nutrition
content and student weight status: implications for new USDA school meal standards. JAMA Pediatr.
2013;167(6):513-]519.
6. Centers for Disease Control and Prevention, National Center for Health Statistics. CDC growth charts: United
States. http://www.cdc.gov/growthcharts/cdc_charts.htm. Accessed May 18, 2015.
7. U.S. Department of Education, National Center for Education Statistics. Common Core of Data (CCD), "Public
Elementary/Secondary School Universe Survey", 2012-]13 v.1a. Table generated May 14, 2015 using ElSi.
https://nces.ed.gov/ccd/elsi/. Accessed May 14, 2015.
8. Congressional Budget Office. Cost estimate for the Healthy, Hunger-]Free Kids Act of 2010, as ordered reported
by the Senate Committee on Agriculture, Nutrition, and Forestry on March 24, 2010. April 10, 2010;
http://www.cbo.gov/sites/default/files/healthyhungerfreekidsact.pdf. Accessed May 22, 2015.
9. USDA Office of Communications. USDA Awards Grants to Support Schools Serving Healthier Meals and Snacks,
Release No. 0058.15. March 6, 2015;
http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=2015/03/00 58.xml. Accessed
May 22, 2015.
Appendix A6. Nutrition Standards for All Foods and Beverages Sold in Schools (Smart Snacks) Intervention
Specification and Background
Modeled Intervention
We modeled the effect of implementation of the national policy requiring nutrition standards for all foods and
beverages sold in schools, according to the USDA interim final rule issued in June 2013.1 As required by the
Healthy, Hunger-Free Kids Act of 2010, the USDA established nutrition standards for all foods sold in schools,
which were implemented beginning in the 2014-15 school year.1 These standards, which set allowable food and
beverage types and nutrient levels, replace the previous federal regulations restricting the sale of foods of minimal
nutritional value (FMNV; i.e., softdrinks, water ices, chewing gum, and certain candies). The food standards focus
on providing whole grains, fruits and vegetables, and key dietary nutrients while limiting calories, sodium, fats, and
sugar. Beverage standards restrict sugar-sweetened beverages and allow water, low-fat milk, and 100% juice.1
Background
The National School Lunch Program (NSLP) provides students with low-]cost or free meals in participating
schools, via federal reimbursements for qualifying meals. Foods and beverages other than federally reimbursable
school meals (aka "competitive foods") are also sold in vending machines, a la carte, and/or other venues in the
majority of schools . 65% of elementary,2 91% of middle,3 and 99% of high school students3 have access. Each
year, schools nationally earn $6.5 billion in revenue from these snacks, which is 16% of all school food service
revenue.1 Because snacks in school have been widely available and of typically poor nutritional quality,4 the
Institute of Medicine recommends strong nutrition standards for all foods and beverages sold or provided in
schools.5
Assessment of Benefit
The impact of Smart Snacks in School on BMI was modeled based on the logic model in Appendix Exhibit A6.1. We
used evidence from one retrospective cohort study6 that examined changes in state laws addressing snacks in
school between 2003 and 2006 from the elementary to middle school level and changes in objectively measured
BMI between spring 2004 (5th grade) and spring 2007 (8th grade) among the Early Childhood Longitudinal Study
Kindergarten Class (ECLS-]K) cohort. Compared to students in 15 states with consistently no laws, over 3 years,
students in 6 states with new laws that restricted snack sales beyond FMNV gained 0.10 fewer BMI units (95% CI: -
]0.33, 0.12), and students in 7 states with new weaker laws that recommended but did not require some standards
gained 0.39 fewer BMI units (95% CI: -]0.56, -] 0.22). In our model, we assume the BMI reduction for middle school
(MS) and high school (HS) students ranges from 0.10.0.39 (mean BMI reduction for MS/HS: 0.245), and for
elementary school (ES) students, that it is 53% of this effect (mean BMI reduction for ES: 0.13), corresponding to
the percentage of daily kilocalories from competitive foods they consume compared to middle school students.4
Key model input parameters are detailed in Appendix Exhibit A6.2.
Reach
The intervention reaches all children and youth in grades kindergarten through 12 attending schools that
participate in the National School Lunch Program (NSLP).
Costs
We estimated the cost of the intervention based on cost analyses done by the federal government in conjunction
with the passage of the regulation and expert stakeholder opinion. In order to implement the intervention,
additional labor will be required for food service staffto keep records of compliance with the nutrition standards
(e.g., receipts, nutrition labels, product specifications). According to the USDA,1 the recordkeeping cost is
estimated at $23.4 million per year. Additionally, we included the cost of one-]time trainings for district-]level food
service directors and for cafeteria managers in schools with a la carte venues.
Appendix A6 References
1. U.S. Department of Agriculture. National School Lunch Program and School Breakfast Program: nutrition
standards for all foods sold in school as required by the Healthy, Hunger- Free Kids Act of 2010, interim final rule, 7
CFR Parts 210 and 220. Vol 78: Federal Register; 2013:39068-39120.
2. Turner L, Chaloupka FJ, Sandoval A. School Policies and Practices for Improving Children's Health: National
Elementary School Survey Results: School Years 2006-07 through 2009-10. Chicago, IL: Bridging the Gap Program,
Health Policy Center, Institute for Health Research and Policy, University of Illinois at Chicago;20-
3. Terry-McElrath YM, Johnston LD, O'Malley PM. Trends in competitive venue beverage availability: findings from
US secondary schools. Archives of Pediatrics &Adolescent Medicine. 2012;166(8):776-778.
4. Fox MK, Gordon A, Nogales R, Wilson A. Availability and consumption of competitive foods in US public schools.
Journal of the American Dietetic Association. 2009;109(2):S57-S66.
5. Institute of Medicine. Nutrition Standards for Foods in Schools: Leading the Way Toward Healthier Youth.
Washington, D.C.: National Academies Press;2007.
6. Taber DR, Chriqui JF, Perna FM, Powell LM, Chaloupka FJ. Weight status among adolescents in States that
govern competitive food nutrition content. Pediatrics. 2012;130(3):437-444.
Appendix A7. Improving Nutrition, Physical Activity, and Screen Time Policies and Practices in Early Care and
Education through the Nutrition and Physical Activity Self-]Assessment for Child Care (NAP SACC) Program:
Intervention Specification and Background
Modeled Intervention
We modeled the effect of the nationwide, state-]by-]state incorporation of the Nutrition and Physical Activity Self-]
Assessment for Child Care (NAP SACC) program into state Quality Rating and Improvement Systems (QRIS) for
early care and education (ECE) programs, assuming completion of NAP SACC would be required for voluntarily
attaining QRIS certification. NAP SACC involves child care health consultants helping ECE program directors to
complete self-] assessments of current nutrition, physical activity (PA), and screen time practices and policies and
then implement improvements.
Background
Early care and education programs reach 64.3% of 3-]5 year olds in the U.S.,1 and can have a profound influence on
young childrenfs eating and PA habits.2-]6 However, ECE programs tend not to meet recommendations for healthy
nutrition, PA, and screen time practices.4-]15 The NAP SACC program, which has been frequently evaluated16-]18
and has been utilized by several different state and local organizations,19 is designed to help ECE programs
improve practices. Most states are developing Quality Rating and Improvement Systems (QRIS) for ECE programs,
which provide opportunities for programs to voluntarily earn levels of certification in return for completing certain
trainings and demonstrating other quality indicators.20 Although NAP SACC Is not currently incorporated into
QRIS, we model this implementation scenario given that QRIS could a promising mechanism for disseminating
NAP SACC widely.
Assessment of Benefit
The impact on child BMI of nationwide implementation of NAP SACC through QRIS certifications was modeled
based on the logic model in Appendix Exhibit A7.1. We used evidence from a group-]randomized, controlled trial of
NAP SACC implementation across three states that examined the impact of NAP SACC on the BMI z-]score of 3-]5
year old children;18 this study found the intervention was associated with a reduction in BMI z-]score of -]0.14
units (SE: 0.06, p=0.02) in intervention compared to control children 9 months after the intervention began. In our
model, we convert BMI z-]score to BMI by multiplying the z-]score change by the average standard deviation for
BMI for girls (SD=1.54) and boys (SD=1.39) aged 4.0 . 4.49 years in the CDC 2000 Growth Charts reference
population;21 this results in an estimated BMI effect of -]0.21 kg/m2 per child (SE: 0.09). Key model input
parameters based on this logic model are described below and are detailed in Appendix Exhibit A7.2.
Reach
The intervention reaches all 3-]5 year old children attending licensed ECE programs (both child care centers and
family daycare homes) that opt to participate in their statefs QRIS. Comparing estimates of licensed ECE program
capacity from a survey of state child care licensing agencies22 with Census estimates of the total 3-]5 year old
population in each state, we calculated the state-]specific probability of a 3-]5 year old attending a licensed child
care center or family daycare home (national average: 41.2%). We then internally surveyed each statefs licensing
agency to ascertain whether a QRIS was in place and, if so, how many centers and/or family daycares participated;
we then estimated the state-]specific probability of QRIS participation for ECE programs (average: 28.8% of
licensed programs). We assumed that all programs in QRIS would be eligible for the NAP SACC intervention, but
that 73% would complete the intervention;16 all children attending these 73% of eligible programs were then
assumed to benefit from the intervention.
Costs
We estimated the cost of the intervention based on data provided by both the authors of the study used to
estimate the BMI effect (A. Alkon, personal communication, March 18, 2015) and by staffat Go NAP SACC, which is
disseminating the NAP SACC intervention (E. Morris, personal communication, 9/19/14). NAP SACC requires
training of a cadre of child care health consultants (CCHCs) to work with ECE programs, which we assume is
overseen by each state. CCHCs then spend time consulting with each ECE program, which we also assume is paid
for by each state; we also estimate travel costs for CCHCs to consult with programs. ECE program directors spend
time implementing NAP SACC, while ECE program teachers are assumed to spend 5 hours in training for the
program. Participating ECE programs also purchase updated physical activity equipment upgrades and a binder of
NAP SACC materials. Lastly, we estimate the likely additional costs incurred by improving nutrition practices by
estimating the most likely changes to meal patterns, comparing to baseline meal service, and estimating the cost
difference per child per day using the USDA Center for Nutrition Policy and Promotion Food Cost Database.23
Additionally, we assume labor costs at the state level for QRIS administrators to monitor compliance with the
intervention.
Appendix A7 References
1. Snyder TD, Dillow SA. T.D., and Dillow, S.A. (2013). Digest of Education Statistics 2012 (NCES 2014-]015), Table
202.10. National Center for Education Statistics, Institute of Education Sciences, U.S. Department of Education.
Washington, DC: 2013. Accessed 2/26/15 at: http://nces.ed.gov/programs/digest/d13/tables/dt13_202.10.asp
2. Sigman-]Grant M, Christiansen E, Branen L, Fletcher J, Johnson SL. About feeding children: mealtimes in child-
]care centers in four western states. Journal of the American Dietetic Association. Feb 2008;108(2):340-]346.
3. Story M, Kaphingst KM, Robinson-]O'Brien R, Glanz K. Creating healthy food and eating environments: policy and
environmental approaches. Annual review of public health. 2008;29:253-]272.
4. Pate RR, Pfeiffer KA, Trost SG, Ziegler P, Dowda M. Physical activity among children attending preschools.
Pediatrics. Nov 2004;114(5):1258-]1263.
5. Finn K, Johannsen N, Specker B. Factors associated with physical activity in preschool children. J. Pediatr. Jan
2002;140(1):81-]85.
6. McWilliams C, Ball SC, Benjamin SE, Hales D, Vaughn A, Ward DS. Best-]practice guidelines for physical activity
at child care. Pediatrics. Dec 2009;124(6):1650-]1659.
7. Ball SC, Benjamin SE, Ward DS. Dietary intakes in North Carolina child-]care centers: are children meeting current
recommendations? Journal of the American Dietetic Association. Apr 2008;108(4):718-]721.
8. Erinosho T, Dixon LB, Young C, Brotman LM, Hayman LL. Nutrition practices and children's dietary intakes at 40
child-]care centers in New York City. Journal of the American Dietetic Association. Sep 2011;111(9):1391-]1397.
9. Ritchie LD, Boyle M, Chandran K, et al. Participation in the child and adult care food program is associated with
more nutritious foods and beverages in child care. Child Obes. Jun 2012;8(3):224-]229.
10. Tandon PS, Garrison MM, Christakis DA. Physical activity and beverages in home-] and center-]based child care
programs. Journal of nutrition education and behavior. Jul-]Aug 2012;44(4):355-]359.
11. Sisson SB, Campbell JE, May KB, et al. Assessment of food, nutrition, and physical activity practices in
Oklahoma child-]care centers. Journal of the Academy of Nutrition and Dietetics. Aug 2012;112(8):1230-]1240.
12. Frampton AM, Sisson SB, Horm D, Campbell JE, Lora K, Ladner JL. Whatfs for lunch? An analysis of lunch
menus in 83 urban and rural Oklahoma child care centers providing all-] day care to preschool children. J Acad Nutr
Diet 2014 Sep 10;114(9):1367-]74.
13. Sigman-]Grant M, Christiansen E, Fernandez G, Fletcher J, Johnson SL, Branen L, Price BA. Child care provider
training and a supportive feeding environment in child care settings in 4 states, 2003. Prev Chronic Dis
2011;8(5):A113.
14. Tandon PS, Saelens BE, Christakis DA. Active play opportunities at child care. Pediatrics. 2015 May 18. pii:
peds.2014-]2750. [Epub ahead of print]
15. Christakis DA, Garrison MM. Preschool-]aged children's television viewing in child care settings. Pediatrics
2009;124(6):1627-]1632.
16. Ward DS, Benjamin SE, Ammerman AS, Ball SC, Neelon B, Bangdiwala SI. Nutrition and physical activity in child
care: Results from an environmental intervention. Am J Prev Med. 2008;35(4):352.356.
17. Drummond RL, Staten LK, Sanford MR, Davidson CL, Magda Ciocazan M, Khor KN, Kaplan F. A pebble in the
pond: The ripple effect of an obesity prevention intervention targeting the child care environment. Health Promot
Pract. 2009 Apr;10(2 Suppl):156S. 167S
18. Alkon A, Crowley AA, Neelon SE, Hill S, Pan Y, Nguyen V et al. Nutrition and physical activity randomized control
trial in child care centers improves knowledge, policies, and children's body mass index. BMC Public Health. 2014
Mar 1;14:215
19. NAP SACC: About NAP SACC. Accessed 5/11/15 at: https://gonapsacc.org/about-]nap-] sacc.
20. Gabor V, Mantinan K. State efforts to address childhood obesity in child care quality rating and improvement
systems. Ann Arbor, MI: Altarum Institute, 20- Accessed 5/29/15 at
http://altarum.org/sites/default/files/uploaded-]related-]files/QRIS-]Report-] 22Feb12-]FIN_0.pdf.
21. Kuczmarski RJ, Ogden CL, Guo SS, et al. 2000 CDC growth charts for the United States: Methods and
development. National Center for Health Statistics. Vital Health Stat 11(246). 2002.
22. National Association for Regulatory Administration. 2011-]2013 Child Care Licensing Study. Accessed 3/27/15
at: http://www.naralicensing.org/Resources/Documents/2011-] 2013_CCLS.pdf
23. United States Department of Agriculture Center for Nutrition Policy and Promotion. Food Prices Database
2003-]2004.
Appendix A8. Bariatric Surgery Intervention Specification and Background Modeled Intervention.
We modeled the effect of a nationwide four-]fold increase in the use of bariatric surgery by eligible adolescents,
ages 13 to 19 years old, including Roux-]en-]Y gastric bypass, laparoscopic adjustable gastric banding, and sleeve
gastrectomy as currently performed. Intervention components include pre-]surgical evaluation, testing, and
multidisciplinary medical visits additional to the surgery itself. The proposed intervention would increase the rate
of bariatric surgery four-]fold over current levels, and will receive the three different surgeries at the higher rate but
the same relative proportion seen at baseline.
Background
Severe obesity, defined by a BMI .120% of the 95th percentile or .35 kg/m2 (considered Class 2 obesity in adults),
is the fastest growing subcategory of childhood obesity.1 A BMI .140% of the 95th percentile or . 40 kg/m2 can be
further defined as Class 3 obesity. The prevalence of Class 3 obesity among those 12-]19 is approximately 2.1% (so
approximately 640,000 adolescents ages 13-]19).2 Compared to the overweight and/ or obese, the severely obese
have a distinctly adverse cardiometabolic profile and are much less likely to respond to lifestyle modification.1,3
Bariatric surgery may be the only effective treatment option for a select group of severely obese adolescents. The
most commonly performed procedures in adolescents are laparoscopic Roux-]en-]Y gastric bypass [RYGB],
adjustable gastric banding [LAGB], and sleeve gastrectomy [SG].4 The American Society for Metabolic and
Bariatric Surgery pediatric committee best practice guidelines5 recommend that surgery be considered with a BMI
of .35 kg/m2 with major co-]morbidities or a BMI of .40 kg/m2 with minor co-]morbidities; however, other clinical
organizations (such as the American Academy of Pediatrics6) recommend a much more conservative approach
and many physicians are reluctant to refer adolescents for weight loss surgery, citing the invasiveness and
potential complications of the procedure.7 Recent evidence suggests that approximately 1,000 adolescents
undergo inpatient surgical weight loss procedures each year, which is far fewer than the total number of
adolescents with Class 3 obesity;8,9 more current estimates by the authors indicate 1150 cases per year. Since
there are approximately 640,000 fitting the criteria, less than 2 in 1,000 receive the procedure.
Assessment of Benefit
A systematic review of the literature was performed to identify all available studies. Of the yielded references, fifty-
]nine studies were reviewed to examine the effectiveness and cost-] effectiveness of surgical weight loss in
adolescents. Ultimately, an existing systematic review and meta-]analysis of adolescent bariatric surgery
performed by Black and colleagues10 was chosen to be applied to the model.
Effectiveness Estimates:
* Black et al.,10 reviewed 21 studies with a total of 637 patients; this included 1 randomized controlled trial, 12
retrospective studies, and 8 prospective observational studies.
Across surgery types (RYGB, LAGB, and SG) the average weighted mean change in BMI units was -]13.5 kg/ m2
(95% CI -]15.1, -]11.9).
Divided by surgical procedure, RYGB produced the largest change in BMI (-]17.2 kg m2; 95% CI -]20.1, -]14.3) and
LAGB produced the smallest BMI reduction (-]10.5 kg m2; 95% CI -]11.8, -9.1). Sleeve gastrectomy resulted in an
intermediate reduction of -]14.5 kg m2; (95%CI -]17.3, -] 11.7).10
Reach
We assumed that all adolescents with a BMI of >=40 are eligible, however, few will actually be offered the
procedure (about 2 in a 1000 currently receive the surgery).
We assumed that 1.56% of eligible adolescents actually have the evaluation for the procedure.
We assumed that only 60% of adolescents evaluated and offered the surgical procedure will actually follow
through to completion. (Note: Number referred to surgery 4600/0.6 = 7,667, which is a 40 percent drop-]out rate.)
We assumed that at baseline there is an estimated one quarter population coverage of this procedure by
Medicaid.12 Moreover, the rate of use among those eligible would increase if Medicaid (and other insurance
coverage) increased under policy change. We assumed this to be 4 times the current rate.
Based on our survey of adolescent bariatric centers (unpublished data), about 60% of referred patients ultimately
undergo surgery; extrapolated to the number of potentially eligible patients, about 4,600 severely obese
adolescents would undergo surgery in our primary scenario.
Costs
Previously published cost estimates for surgical weight loss vary by procedure type. In our scenario, we assume
that 43% of patients undergo RYGB, 51% undergo sleeve gastrectomy, and 6% undergo LAGB (authorfs
unpublished analysis of the most recent KIDS data). We include outpatient pre-]procedural evaluation and
diagnostic testing, the hospital admission, and physician fees.8,11 We estimate costs from the study of Weiner et
al.11 With data on the relative frequency of each procedure type, we estimate the overall cost of surgical weight
loss as a whole.
In the primary scenario, the surgical weight loss intervention would reach 4600 severely obese adolescents with a
BMI + 40 kg/m2 in the first year. To implement bariatric surgery for the benefitting population in the primary
scenario, the annual cost would be $26,174,836.00.
Appendix A8 References
1. Kelly AS, Barlow SE, Rao G, et al. Severe obesity in children and adolescents: identification, associated health
risks, and treatment approaches: a scientific statement from the American Heart Association. Circulation.
2013;128(15):1689-17-
2. Skinner AC, Skelton JA. Prevalence and Trends in Obesity and Severe Obesity Among Children in the United
States, 1999-20- JAMA Pediatr. 2014.
3. Zitsman JL, Inge TH, Reichard KW, Browne AF, Harmon CM, Michalsky MP. Pediatric and adolescent obesity:
management, options for surgery, and outcomes. J Pediatr Surg. 2014;49(3):491-494.
4. Zitsman JL, Fennoy I, Witt MA, Schauben J, Devlin M, Bessler M. Laparoscopic adjustable gastric banding in
adolescents: short-term results. J Pediatr Surg. 2011;46(1):157-162.
5. Michalsky M, Reichard K, Inge T, Pratt J, Lenders C, Surgery ASfMaB. ASMBS pediatric committee best practice
guidelines. Surg Obes Relat Dis. 2012;8(1):1-7.
6. Barlow SE, Committee E. Expert committee recommendations regarding the prevention, assessment, and
treatment of child and adolescent overweight and obesity: summary report. Pediatrics. 2007;120 Suppl 4:S164-
192.
7. Vanguri P, Lanning D, Wickham EP, Anbazhagan A, Bean MK. Pediatric health care provider perceptions of
weight loss surgery in adolescents. Clin Pediatr (Phila). 2014;53(1):60- 65.
8. Kelleher DC, Merrill CT, Cottrell LT, Nadler EP, Burd RS. Recent national trends in the use of adolescent inpatient
bariatric surgery: 2000 through 2009. JAMA Pediatr. 2013;167(2):126- 132.
9. Zwintscher NP, Azarow KS, Horton JD, Newton CR, Martin MJ. The increasing incidence of adolescent bariatric
surgery. J Pediatr Surg. 2013;48(12):2401-2407.
10. Black JA, White B, Viner RM, Simmons RK. Bariatric surgery for obese children and adolescents: a systematic
review and meta-analysis. Obes Rev. 2013.
11. Weiner JP, Goodwin SM, Chang HY, et al. Impact of bariatric surgery on health care costs of obese persons: a
6-year follow-up of surgical and comparison cohorts using health plan data. JAMA Surg. 2013;148(6):555-562
12. Yang YT and Pomeranz JL. States variations in the provision of bariatric surgery under affordable care act
exchanges. Surg Obes Relat Dis. 2015 May-Jun;11(3):715-20.
DETAILS
Subject: Studies; Access; Childhood; Schools; Prevention; Deduction; Effectiveness; Food;
Investment; Implementation; Taxation; Labeling; Nutrition; Obesity; Restaurants;
Standards; Surgery; School meals; Health care services policy; Excise tax; Health
care costs; Health care policy; Initiatives; Cost analysis; Early intervention;
Beverages; Health care; Sugar; Children; Body mass index; Meals; Body size; Body
mass
Location: United States--US
Classification: 9190: United States; 8320: Health care industry; 1200: Social policy; 9130:
Experiment/theoretical treatment
Publication title: Health Affairs; Chevy Chase
Volume: 34
Issue: 11
Pages: 1932-65A
Number of pages: 73
Publication year: 2015
Publication date: Nov 2015
Section: OBESITY &DIET
Publisher: The People to People Health Foundation, Inc., Project HOPE
Place of publication: Chevy Chase
Country of publication: United States, Chevy Chase
Publication subject: Insurance, Public Health And Safety
ISSN: 02782715
Source type: Scholarly Journals
Language of publication: English
Document type: Journal Article
Document feature: References Tables Equations Diagrams
DOI: http://dx.doi.org/10.1377/hlthaff.2015.0631
ProQuest document ID: 1731754743
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Last updated: 2018-10-06
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- Three Interventions That Reduce Childhood Obesity Are Projected To Save More Than They Cost To Implement