Making a Business Case for Wellness. Diane Andrea, RD, LD Wellness Consultant

Transcription

1 Making a Business Case for Wellness Diane Andrea, RD, LD Wellness Consultant

2 Overview of Presentation 1 Cost of unhealthy behaviors 2 Return on Investment 3 Biggest bang for your wellness buck

3 What is Workplace Wellness? An organized, employer-sponsored program that is designed to support employees (and, sometimes, their families) as they adopt and sustain behaviors that reduce health risks, improve quality of life, enhance personal effectiveness, and benefit the organization s bottom line. Harvard Business Review

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5 Average Total Health Care Costs Per Employee $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 actual Centers for Medicare and Medicaid Services

6 Average Total Health Care Costs Per Employee $14,000 $12,000 $14,000 $10,000 $10,982 $8,000 $6,000 $4,000 $2,000 $0 actual projected Centers for Medicare and Medicaid Services

7 Biggest Challenges to Maintaining Affordable Benefit Coverage Poor employee understanding of plan Escalating cost of specialty drugs Underuse of preventive services High-cost catastrophic cases Employees poor health habits 0% 10% 20% 30% 40% 50% 60% 70%

8 Percent of Chronic Diseases That Are Caused by Poor Lifestyle 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 91% 82% 71% 70% Cancers Stroke Heart Disease Diabetes Sources: Stampfer, 2000; Platz, 2000; Hu, 2001

9 What Does Your Organization Look Like? 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 seat belts 24 don t exercise 44 suffer from stress

10 Increased Costs Healthcare costs for smokers $5,816 Healthcare costs for obese $1,400 Healthcare costs for diabetes $6,600

11 Excess Claims for Each Additional Health Risk $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $2,400 $4,000 $5,000 $6,500 $7,800 $9,000 $10, $11,900 Source: Dee Edington, Health Management Research Center

12 Average Medical Care Costs $10,500 $9,000 $7,500 $6,000 $4,500 $3,000 $1,500 $0 10,095 9,221 6,664 7,268 3,432 4,130 5,445 3,601 2,025 2,741 $3,366 $4,319 $1,247 $1,515 $1,920 < risks 0-2 risks Source: StayWell Health Management N=43,687

13 Percent with Worker s Comp Claims 14% 12% 10% 8% 6% 4% 2% 0% 12% 9% 6% 0-2 risks 3-5 risks 5+ risks Source: StayWell Health Management N=23,916

14 Percent with Short Term Disability Claims 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 18% 12% 9% 0-2 risks 3-5 risks 5+ risks Source: StayWell Health Management N=23,916

15 Days Absent risks 3-5 risks 5+ risks Source: StayWell Health Management N=941

16 Absenteeism Normal weight w/o chronic conditions 4 days a year Obese or overweight w/o chronic conditions 4.3 days a year Obese or overweight with 1 2 chronic health conditions 13 days a year Obese or overweight with 3+ chronic health conditions 42 days a year

17 Impact of Poor Health on Employer Costs Absenteeism 6% Worker s Comp 9% Health Care Cost 25% Presenteeism 60% Edington, Burton. A Practical Approach to Occupational and Environmental Medicine

18 Health Conditions Contributing to Lost Productivity Depression Anxiety Migraines Respiratory illnesses Arthritis Diabetes Back and neck pain

19 Approximate Percentage of Annual Workload Lost by Risk Condition Risk Condition Absenteeism Presenteeism Total % Diabetes 4.94% 18.26% 23.2% Depression 2.61% 14.51% 17.12% Alcohol abuse 5.00% 4.78% 9.78% Overweight/obese 1.40% 8.30% 9.70% High cholesterol 3.14% 4.91% 8.05% Cigarette smoking 2.84% 4.78% 7.62% High stress 3.08% 4.45% 7.53% Arthritis 2.36% 4.90% 7.26% High blood pressure 0.37% 5.70% 6.07% Asthma 4.80% 1.20% 6.00%

20 Well-Being Life evaluation Emotional health Physical health Healthy behaviors Work environment Basic access Healthcare Outcomes Medical and Rx spend ER visits Hospitalizations Bed days Productivity Outcomes Absenteeism STD Presenteeism Job performance Retention Outcomes Intention to stay Voluntary turnover Involuntary turnover Population Health Management 2013

21 Results Health Care Outcomes: Medical and Rx spend $2,038 low score $1,181 high score Productivity: Unscheduled absences 3.96 days low score 1.79 days high score Productivity: Presenteeism (self score) 32.75% low score 9.81% high score Retention: Intention to stay (0-100) low score high score

22 Employees Find Value Participated in one or more wellness program 66% say benefits are very valuable Non-participant 51% say benefits are valuable

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24 Return on Investment (ROI) $6.00 $5.82 $5.00 $4.00 $3.00 $2.00 $1.00 $3.48 $1.00 $1.00 cost savings $0.00 Health Care Costs Absenteeism

25 Return on Investment in Various Programs Health risk assessments $6.04 Fitness programs $4.90 Wellness coaching $4.90 Smoking cessation $3.50 Flu shots $2.10 Obesity management $1.17

26 RAND Study Findings Smoking Cessation Physical Activity Fruit and Vegetable Consumption Body Weight Changes

27 More Studies Johnson & Johnson Smoking decreased by 1/3 Physical inactivity decreased by ½ Blood pressure decreased by ½ MD Anderson Cancer Center Lost work days declined 80% Worker s compensation premiums declined 50% HBR December 2010

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30 Risk is Not Static High Risk Moderate Risk Low Risk 2% - 4%

31 Annual Savings High Risk Moderate Risk $153 Low Risk $350

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33 15 Chronic Diseases Diabetes Coronary Artery Disease Hypertension Back Pain Obesity Cancer Kidney Disease Asthma Arthritis Allergies Sinusitis Depression Congestive Heart Failure Lung Disease (COPD) High Cholesterol

34 8 Risks and Behaviors Poor diet Excessive alcohol Physical inactivity Insufficient sleep Smoking Poor standard of care Poor stress management Lack of health screening

35 Percent of Employers Offering Specific Interventions Nutrition/weight intervention 79% Smoking - 77% Fitness 72% Alcohol/Drug abuse 52% Stress management 52% Health education 36% Other 5%

36 Focus on Poor Diet Obese 46% increase in inpatient costs 27% more physician visits and outpatient costs 80% increased spending on Rx Programs Annual physical HRA On-site screenings On-site Weight Watchers Health coaching

37 Top Tactics to Drive Results Offer incentives or disincentives to motivate sustained health care behavior change (61%) Promote a culture of health in the workplace (48%) Implement a company-wide wellness policy and guiding principles (48%) Move to rewarding improved health results or outcomes (44%) Promote other consumer-driven plan strategies (31%)

38 Top Tactics in Future Use of internal and external social networks to promote health (49%) Managers performance goals tied to wellness success (47%) Summit meetings with all health-related vendors (44%) Tracking or reporting health risks and wellness statistics by business unit or location (39%) Domestic wellness policy and guiding principles (38%)

39 Top Focus Areas of Employer s Health Care Strategy in 2013 Develop a workplace culture where employees are accountable and supported for their health and well-being - 40% Stay up to date and comply with PPACA 34% Educate employees to be more informed consumers of health care 33% Adopt/expand the use of financial incentives to encourage healthy behaviors 32% Develop/expand healthy lifestyle activities 24%

40 Resources

41 Cost Analysis Wellsteps.com ROI calculator Welcoa.org EconoHealthROI

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43 Cost Calculators Alcohol Obesity

44 Cost Calculators Depression Physical Inactivity Tobacco

45 Conclusion 1 Chronic disease costs 2 3 Well-designed wellness programs are successful Healthier employees are happier employees

46 Diane Andrea J.W. Terrill Wellness Consultant Q&A (314) Copyright / Legal Disclaimer

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49 Employee Participation Rates 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46% 46% Health Questionnaire Screening 21% Fitness Activity 7% Smoking Cessation 10% Weight Program 16% Disease Management