The Personal Cost of Obesity
LAP-BAND® Procedure Cost
Insurance and Health Plans
Insurance Alternatives
Potential Tax Savings
The Personal Cost of Obesity
Weight loss can change your life. Losing dangerous excess weight with the LAP-BAND® System can significantly improve your health and enhance your psychological and social well-being—not to mention your overall quality of life. You may also find that dramatic weight loss can significantly reduce weight-related costs, which on average can be more than $15,000 a year per person! What better investment than in yourself and your future?
| Weight-Related Expenses |
Estimated Annual Costs |
| Medical/drug costs (BMI>35)1 |
$ 5,965 |
| Out-of-pocket healthcare expenses2 |
$ 2,182 |
| Employment inactivity costs3 |
$ 900 |
| Commercial weight-loss program fees4 |
$ 600 |
| Prescription co-pays (5 meds, $10 each) |
$ 600 |
| Grocery and dining costs5 |
$ 5,321 |
| TOTAL |
$15,568 |
LAP-BAND® Procedure Cost
The cost of a lap band surgery in Tennessee will vary from state to state and even from city to city, and it is difficult to predict what your actual costs will be. The variations are often due to the type of health plan you have, whether the surgeon and hospital you choose is an in-network provider, and whether your procedure is performed as an in-patient (overnight stay) or out-patient (same day). Generally speaking the cost of lap band surgery (facility, surgeon, and anesthesiologist) can run from $12,000 to $30,000.
In addition to the surgery, you will need to be seen by your doctor for follow-up care and adjustments to the lap band so that you get the best results. These follow-up visits will run from approximately $35.00 to $200.00 each, depending upon how long you are in the office for each follow-up visit.
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Insurance and Health Plans
Today many health plans cover the cost of lap band surgery, which means most, if not all, the costs will be paid for. Each health plan will have certain criteria that need to be met before you can actually have the surgery. Attempting to navigate the world of insurance can be a daunting experience, but this Web site provides useful information and resources to help you.
In some cases your insurance may not cover the cost of lap band surgery and will issue a “denial” to your “prior authorization request.” A denial may be due to a medical policy exception clause, or your health plan may not cover bariatric (weight-loss) surgery. Depending upon the reason for the denial, you and your doctor may still be able to reverse the denial.
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Insurance Alternatives
Following denial or when insurance coverage for the LAP-BAND® System procedure is not available, there are several alternatives that can be considered as viable payment options.
- Cash (Lump Sum Payment)
Options include using a 401(k) fund, savings or stocks.
- Financing
Credit Cards—Patients may be able to take advantage of some low rates that are available with many credit cards. Credit cards are often as easy to qualify for as a loan; in addition, many credit card companies offer flexible payments and faster decisions. Please keep in mind, however, that they may not offer a credit line large enough to cover the procedure and interest rates are subject to change.
Loans—Options include equity, secured, unsecured, and combination loans from a financial institution (i.e. bank, credit union, etc.). Ask your LAP-BAND® surgeon if he or she is a participant in INAMED Health’s LAP-BAND® Patient Finance Program. If not, your surgeon can easily enroll in this program by contacting his or her INAMED Health Sales Representative. Loan approval and eligibility will be based on the credit worthiness of the borrower. Lenders often take into consideration credit rating, current earnings, assets, and future assessments. Multiple borrowers increase the likelihood of loan approval. This means that you may consider asking a loved one to co-sign or to apply for the loan on your behalf.
Monthly payment will vary based on the term of the loan (1 to 10 years) and the interest rate (on average between 6 percent and 10 percent). Based on the chart below, if you borrowed $10,000 at an interest rate of 10 percent over 10 years, then your monthly payment would be a mere $132.20 per month. This is less than an average car payment!
While financing is a viable option, please keep in mind that not all borrowers qualify for a loan. Types of loans and amounts of security determine the interest rate you will receive. There are strict credit limits, and collateral is often required for secured loans.
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Potential Tax Savings
In the year you finance your cost of your lap band surgery, you may be eligible to receive thousands of dollars back in potential tax savings. Think of this as a discount on your procedure. IRS Publication 502 states you can deduct your medical and dental expenses when they total more than 7.5 percent of your adjusted gross income (see p. 2 of Publication 502). Adjusted gross income is your total income less a few very specific deductions. Medical expenses may include fees paid to doctors, payments for hospital services, prescription drug costs, physician co-pays, and the cost of participating in a weight-loss program for a specific disease, including obesity. Speak with your tax advisor or see
IRS publication 502 for details.
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1. Health Management Research Center, University of Michigan, 2001.
2. U.S. Bureau of Labor Statistics, Consumer Expenditures, 2001.
3. Colditz, GA. Economic costs of obesity and inactivity. Med Science Sports Exercise, 1999.
4. Marketdata Enterprises, Inc., October 2002.
5. U.S. Bureau of Labor Statistics, Consumer Expenditures, 2001.
