The Health, Economic, and Legal Implications of Successful Worksite Wellness Programs

Transcription

1 The Health, Economic, and Legal Implications of Successful Worksite Wellness Programs Presented by: Don R. Powell, Ph.D. President and CEO American Institute for Preventive Medicine

2 Total Employee/Employer Health Care Costs: Total Cost = $5, Total Cost = $8,748 $1,044 $1,896 Employee Employer Employee Employer $4,342 $6,852 Source: Towers Perrin 2007 Health Care Cost Survey

3 Health Insurance Premiums vs Other Indicators Source: Kaiser Family Foundation, 2005

4 If Food Were Health Care If food prices had risen at medical inflation rates since the 1930 s: 1 dozen eggs $ pound apples $ pound sugar $ roll toilet tissue $ dozen oranges $ pound butter $ pound bananas $ pound bacon $ pound beef shoulder $ pound of coffee $ item total $ Source: American Institute for Preventive Medicine, 2007

5 How Companies Are Responding to Increased Health Care Costs 66% 59% 56% 55% 62% % of companies 31% Increased copays Increased participant cost Increased deductibles Participant pay more for prescription drugs Switched providers Source: Society for Human Resource Management, 2006 Offer wellness program

6 Issues Most Affecting Employee/Member Productivity % 60 59% 58% 57% 50 49% 49% Stress Personal/ Family Chronic medical conditions Unscheduled absences Presenteeism Lifestyle medical conditions Source: Watson Wyatt, 2005

7 10 Most Purchased Products in Grocery Stores 1. Marlboro cigarettes 2. Coke Classic 3. Pepsi 4. Kraft cheese 5. Diet Coke 6. Tide 7. Campbell s soup 8. Folger s coffee 9. Winston cigarettes 10. Tropicana

8 The Cost of Unhealthy Behavior Steelcase 1 Dupont 2 Chrysler 3 Smoking $285 $960 $342 Weight $222 $401 $410 Exercise $488 N.A. $ 96 Alcohol $597 $389 NA Seatbelts $196 $272 $226 Hypertension $327 $343 $ 94 Cholesterol $189 $370 $118 Sources: 1. American Journal of Health Promotion, American Journal of Health Promotion, Milliman & Robertson, 1995

9 High Risk Employees Cost More 100% 75% 70.2% Percent 50% 25% 46.3% 34.8% 21.4% 19.7% 14.5% 11.7% 10.4% 0% -25% Depression Stress Glucose Weight Tobacco- Past Tobacco Blood Pressure Exercise -50% Source: Journal of Occupational and Environmental Medicine, Oct. 1998

10 Association of Risk Levels with Several Corporate Cost Measures Outcome Measure Low Risk (N-671) Medium Risk (N=504) High Risk (N=396) Short term disability $120 $216 $333 Worker s compensation $228 $244 $496 Absence $245 $341 $527 Medical & pharmacy $1,158 $1,487 $3,696 Total $1,751 $2,288 $5,052 Source: Wright, Beard, Edington, JOEM 44(12): , 2002

11 Health Risks & Health Care Costs Average Medical Costs $4,500 $3,000 $1,500 $0 $4,043 $3,253 $2,516 Low Risk Moderate Risk High Risk (0-2 Risks) (3-5 Risks) (6+ Risks) N = 1,706 Source: Fairview Alive Program Evaluation (StayWell, 2004)

12 Savings Per Employee ( ) $500 $400 $300 $200 $100 $0 $17 $107 $75 $36 $282 $45 $101 $54 $ Medical Absenteeism Workers' Comp Source: Fairview Alive Program Evaluation (StayWell, 2004)

13 Review of Published Studies on Worksite Wellness (ROI) 28 Studies 1 18 Studies 2 42 Studies 3 56 Studies 4 $6 $5 $4 $3 $2 $1 $0 Medical Costs Absenteeism Medical Costs, Absenteeism, & Workers Comp Medical Costs & Absenteeism 1. Source: Aldana, SG, Financial impact of health promotion programs: a comprehensive review of the literature, American Journal of Health Promotion, 2001, volume 15:5: pages Source: Aldana, SG, Financial impact of health promotion programs: a comprehensive review of the literature, American Journal of Health Promotion, 2001, volume 15:5: pages Source: Chapman, LS, Meta-evaluation of worksite health promotion economic return studies, Art of Health Promotion, 2003, 6:6, pages Source: Chapman, LS, Meta-evaluation of worksite health promotion economic return studies: 2005 Update Art of Health Promotion, 2005, p

14 Prevalence of Worksite Wellness Programs Resources & Information Health Screening Program Smoking Cessation Health Newsletter Fitness Center Subsidy Weight Loss Onsite Fitness Center Stress Management Source: SHRM 2006 Benefits Survey Reports

15 Risk Factors for Every 100 Employees/Members 25 have cardiovascular disease 12 are asthmatic 6 are diabetic 26 have high blood pressure 30 have high cholesterol 38 are overweight 21 smoke 31 use alcohol excessively 20 don t wear seatbelts 24 don t exercise 44 suffer from stress Source: Department of Health and Human Services

16 Wellness Wizard Determine your employee s health risks, costs, and savings

17 1. Make the Program Multi-Component Assessment activities Communication materials Self-help materials/programs Health Coaching Group programs

18 2. Teach Demand Management Medical self-care Wise consumerism

19 Physician Office Visits Annually Total - to non federally employed, office based physicians 964 million Approximately 3.3 visits/person Source: National Ambulatory Medical Care Survey-2007 Unnecessary Visits 25% or 241 million Source: Dunnell, K. and Cartwright, C. Medicine Takers, Prescribers and Hoarders Average cost - $121/visit Source: American Medical Association, 2001

20 Emergency Room Visits Annually Total 115 million 37.8 visits/100 persons Source: National Ambulatory Medical Care Survey Unnecessary Visits 55% or 63 million Source: National Ambulatory Medical Care Survey Average cost - $586/visit Source: New England Journal of Medicine, 1996

21 HealthyLife Self-Care Studies

22 Health at Home was the reason I went to see my doctor and it saved my life. Jeff Bilbrey Sales Specialist, Lowe s Bloomfield Hills, Michigan

23 Health at Home was a real lifesaver. It helped me to know my husband, Jay, was having a heart attack. Marijo Parsons Pharmacy Supervisor Aurora Medical Center Milwaukee, WI

24 Self-Care Program ROI Analysis Cost of self-care guides Comparison to annual health expenditures Utilization & cost assumptions Projected cost savings

25 3. Present Psychosocial Issues Self-esteem Anger management Depression management Laughter workshops

26 4. Address High Risk Employees

27 Address Low Risk Employees Keep healthy people healthy Low risk employees won t remain low risk 10 20% will move to high risk in 1 year Source: University of Michigan Health Management Research Center

28 5. Manage the Health Care Continuum Help High Risk Become Lower Risk Wellness Management Healthy No Disease Risk Management Hypertension Obesity Demand Management Doctor Visits ER Visits Disease Management Diabetes Asthma Catastrophic Illness Management Cancer Head Injuries 55% 25% 15% 5% Prevent Low Risk from Becoming High Risk

29 No / Low Cost Wellness Programs Weight control Physical fitness Smoking cessation Stress management Nutrition Total Health

30 6. Use High Tech as an Adjunct to High Touch No data to support cost savings Only 50% of U.S. population has internet access Only 25% goes online for health information Some intranets can only be accessed at work May not reach dependents Time consuming Many people still prefer print Employees thank you for books

31 7. Maximize Employee Participation Multi-component methods Saturation effect Incentives

32 8. Involve Employee s Family 70% of health care costs Women make 80% of health care decisions

33 9. Know Legal Restrictions Americans with Disabilities Act (ADA) Health Insurance Portability and Accountability Act (HIPAA)

34 10. Evaluate Your Program Participation Financial Risk Factors Wellness Program Employee Satisfaction Absenteeism Productivity/ Presenteeism

35 Thank you for your attention. Questions? Phone: , extension 221 Fax: Web Site: