healthcare cost reduction and employee wellness program presented 8-1-05 to rick lamber mega foods
TRANSCRIPT
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Healthcare Cost Reductionand
Employee Wellness Program
Presented 8-1-05 to
Rick LamberMega Foods
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The Situation
• Average healthcare costs are increasing 12% annually according to CDC and HHS.
• In 2004, health care expenditures were $1.8 trillion
• Average per capita health care costs in 2004 were approximately $7595.
• That’s a health care cost increase of approximately $911 per employee annually.
• A company with 100 employees will pay an additional $91,100 annually in direct rising health care costs.
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• Employers are forced to choose.
– Reducing coverage – Passing costs on to employees – Bearing the brunt themselves.
• Employers are searching for alternative methods to reduce health care costs.
• The Cause………..
The Situation
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The Cause Is A Growing Sedentary Lifestyle
• 75% of the population meets the definition of “sedentary”.
• 25% are physical activity and healthy• 50% are sedentary and 25% of those have
chronic conditions directly relating to a sedentary lifestyle
• 25% are sedentary and are beyond our help • Sedentary behavior in pre 40 year olds leads to chronic
conditions in their post 40 years• Treatment of chronic conditions (sick care spending) is
the main healthcare cost driver • The 40 plus baby boom population only
disproportionately inflates the rising costs
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19961991
2003
Obesity Trends* Among U.S. AdultsBRFSS, 1991, 1996, 2003(*BMI 30, or about 30 lbs overweight for 5’4” person)
No Data <10% 10%–14% 15%–19% 20%–24% ≥25%
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The Cause Is A Growing Sedentary Lifestyle
• Studies show the combination of sedentary lifestyles and aging have lead to chronic conditions, increasing direct (sick care spending) and indirect (absenteeism and disability) costs.
• Approximately 50% or $1 trillion of the annual $1.8 trillion healthcare expenditures are “preventable” and are directly related to a lack of physical activity or sedentary lifestyles
• The CDC reports that indirect costs for absenteeism, disability, injuries, poor morale, and lost productivity due to sedentary lifestyles can “equal” the amount of preventable healthcare costs.
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The Impact to Your Organization• Mega insures 300 people
• If the industry numbers hold true• 150 of your insured employees fit the definition
of sedentary• 50% of you health care costs are preventable
and directly related their sedentary lifestyle
• According to the CDC, moving this group from sedentary to moderately active should save you up to $3798.00 per employee or $569,700 in direct costs per year.
• Add to that the benefit from indirect cost savings.
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The Challenges
• Motivating 50% of the population to change their sedentary lifestyle
• Most of them won’t do it on their own or they would have done it by now!
• Investing today for results tomorrow • ROI is not immediate
• Perception that self-managed programs work• Internally run programs are generally
unsuccessful • Not a core competence• Overburdens responsible staff
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Serrigraph Case Study
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The Solution… Intervention With Prevention• The trend must be reversed in order to reduce health care costs.
• Motivate the pre 40 group to prevent sedentary lifestyles leading to future chronic care spending
• Work with 40 plus group to reduce chronic condition treatment
• According to the CDC and HHS, 50% of direct sick care expenditures can be significantly reduced or eliminated by incorporating physical activity into peoples lives.
• Corporations can better control their healthcare costs through programs that UNIFY health and fitness resources for their employees.
• AND pay for it with direct dollars budgeted for sick care and reallocated indirect savings.
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The Solution…Unity Health and Fitness
Fitness
Physicians
Physical Activity coordinators /
coaches
Dieticians
Nurse practitioners
Chiropractors
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Unity Health & Fitness Programs For Corporations
• Using our 3 phase program, our goal is to provide a measurable ROI by executing and sustaining health and fitness programs that directly impact employers rising healthcare costs.
• We do this by UNIFYING health and fitness resources for their employees
• We strive to improve the health status and reduce the health risks of each and every participant
• Our staff and facilities are top notch
• Our web based tracking system gives people the ability to progress in or outside of our facility
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Unity Health and Fitness 3 Phase Program
• Phase 1 health and fitness evaluations• Phase 2 physical activity plan (PAP) using a
combination of our health and fitness products – Lifestyle Coaching– FitLinx Individual Fitness Tracker– Nutrition Counseling– BP Screening– Stress Management– Aqua Therapy – Back Care– Diabetes Care– Health Specific Care
• PHASE 3, Incentive Programs
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Program Cost
• Program contract runs for minimum 1 year period.
• The Phase 1 evaluation is $75 per employee• Phase 2 (PAP) can be executed at home on in
our facility – Home based fee is $250 per employee– Facility based fee is $750 per employee
• Phase 3 incentives are something we can help you implement within your company.
• There is a one time administrative start up fee of $2,500
• With a cost @ $825 and an anticipated savings of approx $3800 in Health Care spending, the ROI is $2975 or 360%
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Next Steps
• Answer any questions
• Prepare and sign a contract
• Set up employee education sessions to inform them of the benefits and mechanics of this program.
• Get started