Arc estimates your potential healthcare cost savings by combining decades of peer-reviewed research on exercise benefits with validated cost data from the U.S. Medical Expenditure Panel Survey (MEPS). Studies consistently show that regular physical activity reduces healthcare utilization and costs significantly. Research comparing physically active and inactive groups shows lower healthcare costs for active groups, ranging from 9.0% to 26.6% lower costs, and inadequate physical activity costs the nation $192 billion a year for related health care.
Here's what we factor into your calculation:
Age: Your baseline healthcare costs increase significantly with age, and our model uses science-based data from MEPS showing that healthcare costs rise from $2,000 per year for ages 5-17 to over $11,000 per year when you're over 65 years old. Younger users generally have higher intervention potential, reflecting research showing greater lifetime savings from early adoption of healthy habits.
BMI and Weight Status: Adults with obesity in the United States compared with those with normal weight experienced higher annual medical care costs by $2,505 or 100%, with costs increasing significantly with class of obesity. Our algorithm calculates your BMI and applies research-validated cost multipliers. Studies show that obesity was associated with $1,861 excess annual medical costs per person, accounting for $172.74 billion of annual expenditures, while severe obesity was associated with excess costs of $3,097 per adult.
Gender: We incorporate documented gender differences in healthcare utilization. Research consistently shows that overall per capita spending was higher for adult women than adult men, so our model applies a gender-based cost adjustment of approximately 18% higher baseline costs for women.
Fitness Level: Beginners often see the largest cost reduction potential because they're making the biggest behavioral shift. Our model reflects the well-established principle that the more active an individual is prior to the physical activity intervention, the smaller the health gains of this individual will be if he/she engages in additional physical activity.
Workout Frequency: Benefits follow a dose-response relationship with diminishing returns. Research shows optimal health benefits at 3-4 workouts per week, with people who met physical activity guidelines of at least 150 minutes per week having lower healthcare utilization, with fewer emergency room visits, hospital admissions and primary care visits.
Evidence-Based Savings Ranges: We cap estimates at realistic maximums based on research. Studies suggest that the direct medical cost of overweight and obesity combined is approximately 5.0% to 10% of U.S. health care spending, and interventions can reduce obesity-related costs by 20-45% depending on weight status and intervention success.
Age-Based Intervention Effectiveness: Younger individuals have greater lifetime savings potential, but all ages benefit. Seniors who participated in a SilverSneakers exercise program had over $2,000 per year savings in healthcare costs compared to nonparticipants.
We ensure our estimates stay within realistic bounds by capping savings at evidence-based maximums and requiring a minimum meaningful savings threshold. The algorithm combines your personal factors with validated cost multipliers from MEPS data to estimate your personalized healthcare savings potential.
Disclaimer: These healthcare cost savings estimates are for educational purposes only and not medical or financial advice. Calculations are based on population-level research data and do not account for personal health history, existing conditions, or individual circumstances. Actual healthcare costs and savings may vary significantly based on numerous factors beyond exercise habits. Please consult with your healthcare provider and financial advisor for personalized guidance.