A White Paper: The Health and Economic Implications of Worksite Wellness Programs

Presented by:

Don R. Powell, Ph.D.

President and CEO

American Institute for Preventive Medicine

Health Insurance Premiums vs Other Indicators

Source: Kaiser Family Foundation, 2008

If Food Were Health Care

If food prices had risen at medical inflation rates since the 1930’s: 1 dozen eggs $ 80.20 1 pound apples $ 12.23 1 pound sugar $ 13.70 1 roll toilet tissue $ 24.20 1 dozen oranges $107.90 1 pound butter $102.07 1 pound bananas $ 16.04 1 pound bacon $122.48 1 pound beef shoulder $ 43.57 1 pound of coffee $ 64.17

10 item total $586.56

Source: American Institute for Preventive Medicine, 2007

How Companies Are Responding to Increased Health Care Costs

% of companies

Increased participant cost

Participant pay more for prescription drugs

Switched providers

Source: Society for Human Resource Management, 2006

Increased copays

Increased deductibles

Offer wellness program

66%59%

56% 55%

31%

62%

Health Risks & Health Care Costs

$2,516

$3,253

$4,043

$0

$1,500

$3,000

$4,500

Low Risk Moderate Risk High Risk

Av

era

ge

Me

dic

al

Co

sts

- 2

00

3

(0-2 Risks) (3-5 Risks) (6+ Risks)

N = 1,706

Source: Fairview Alive Program Evaluation (StayWell, 2004)

Savings Per Employee (2001 – 2003)

$41

$282

$54$101

$36

$107

$17

$75

$45

$0

$100

$200

$300

$400

$500

2001 2002 2003

Medical Absenteeism Workers' Comp

Source: Fairview Alive Program Evaluation (StayWell, 2004)

Review of Published Studies on Worksite Wellness (ROI)

$0

$1

$2

$3

$4

$5

$6

28 Studies1 42 Studies3 56 Studies418 Studies2

Medical Costs

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 296-320.

2. 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 296-320.

3. Source: Chapman, LS, Meta-evaluation of worksite health promotion economic return studies, Art of Health Promotion, 2003, 6:6, pages 1-16.

4. Source: Chapman, LS, Meta-evaluation of worksite health promotion economic return studies: 2005 Update Art of Health Promotion, 2005, p. 1-16.

Absenteeism

Prevalence of Wellness Programs

49%

39%

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

Risk Factors for Every 100 Employees/Members

25 have cardiovascular disease 8 are asthmatic 8 are diabetic 31 have high blood pressure 17 have high cholesterol 66 are overweight 20 smoke 20 use alcohol excessively 20 don’t wear seatbelts 40 don’t exercise 44 suffer from stress

Source: Department of Health and Human Services

Wellness Wizard®

Determine your employee’s health risks, costs, and savings

1. Make the Program Multi-Component

Assessment activitiesCommunication materialsSelf-help materials/programsHealth CoachingGroup programs

Smokeless® 1 Year Quit Rates for

Salaried and Hourly EmployeesCategory Total # of

Employees # of

Nonsmokers % Who

Quit

Employees contacted at follow-up who actually used kits (397) minus 89 who didn’t use materials

308 138 45%

Employees able to be contacted at follow-up

397 138

35%

All employees who ordered kits (includes 225 who couldn’t be contacted and 89 who didn’t use the materials)

622

138 22%*

*Assumes all employees who could not be contacted are smokers

Source: American Journal of Health Promotion

2. Teach Demand Management

Medical self-careWise consumerism

Physician Office Visits Annually

Total - to non federally employed, office based physicians

964 million Approximately 3.3 visits/personSource: National Ambulatory Medical Care Survey-2007

Unnecessary Visits25% or 241 millionSource: Dunnell, K. and Cartwright, C.

Medicine Takers, Prescribers and Hoarders

Average cost - $121/visitSource: American Medical Association, 2001

Emergency Room Visits Annually

Total 115 million37.8 visits/100 personsSource: National Ambulatory Medical Care Survey - 2005

Unnecessary Visits55% or 63 millionSource: National Ambulatory Medical Care Survey - 2005

Average cost - $586/visitSource: New England Journal of Medicine, 1996

HealthyLife® Self-Care Studies

“Health at Home® was the reason I went to see my doctor and it saved my life.”

Jeff BilbreySales Specialist, Lowe’sBloomfield Hills, Michigan

“Healthier 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

3. Present Psychosocial Issues

Self-esteemAnger managementDepression managementLaughter workshops

4. 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

Thank you for your attention.

Questions?Phone: 800-345-2476, extension 221

Fax: 248-539-1808

E-mail: dpowell@HealthyLife.com

Web Site: www.HealthyLife.com