introducing…. total annual costs of chronic disease : - $1,600,000,000,000 now. -...
TRANSCRIPT
Introducing…
• Total annual costs of chronic disease: -$1,600,000,000,000 NOW. -$4,200,000,000,000 in just 7 years (Milken
Institute 2007)
• Doubling time is now less than 6 years and accelerating.
• $400,000 per household now…$35 Trillion in Medicare
• Current Medicare Debt will bankrupt U.S. in year 2030
David Walker, former U.S. comptroller general
US Health Care Spending Paradox
Figure 15. Two-Thirds of Medicare Spending is for
People With Five or More Chronic Conditions
5+ chronic conditions
66%
No chronic conditions
1%
4 chronic conditions
13%
1-2 chronic conditions
10%
3 chronic conditions
10%
Commonwealth Fund 2008
3.0
3.2
3.4
3.6
3.9
4.1
4.4
2.9
3.0
3.2
3.4
3.7
3.9
4.1
2.42.5
2.6
2.8
3.0
3.1
3.3
3.4
3.6
2.4
2.6
2.8
2.3
2.7 2.9
$2
$3
$4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Projected under current system
Insurance Connector plus selectedindividual options*
Spending at current proportion(16.2%) of GDP
Commonwealth Fund, December 2008
0
1000
2000
3000
4000
5000
6000
7000
1980 1984 1988 1992 1996 2000 2004
AustraliaCanadaDenmarkFranceGermanyNetherlandsNew ZealandSwedenSwitzerlandUnited KingdomUnited States
0
2
4
6
8
10
12
14
16
1980 1984 1988 1992 1996 2000 2004
AustraliaCanadaDenmarkFranceGermanyNetherlandsNew ZealandSwedenSwitzerlandUnited KingdomUnited States
Total expenditures on healthas percent of GDP
•Average spending on healthper capita ($US PPP)
1 France2 Italy3 San Marino4 Andorra5 Malta6 Singapore7 Spain8 Oman9 Austria10 Japan11 Norway12 Portugal13 Monaco14 Greece15 Iceland16 Luxembourg17 Netherlands18 United Kingdom
19 Ireland20 Switzerland21 Belgium22 Colombia23 Sweden24 Cyprus25 Germany26 Saudi Arabia27 United Arab Emirates28 Israel29 Morocco30 Canada31 Finland32 Australia33 Chile34 Denmark35 Dominica36 Costa Rica37 United States of America38 Slovenia39 Cuba40 Brunei
The World Health Organization
$8130/year for every man, woman and child in the US spent on “Medical Treatment”
Versus$1.21/year spent on awareness and prevention or
“Health Care”
Managed Care 2003 ©MediMedia USA
Chronic Conditions• 88% of all prescriptions written• 72% of all doctors visits• 76% of all inpatient hospital staysManaged Care 2003 ©MediMedia USA
•For every $1 spent on medical and pharmacy costs, employers incur $2.30 in absenteeism, productivity and presenteeism costs.
•If condition is Depression, Stress or Anxiety-related, employers incur $20 in “soft costs” for every $1 spent on medical and pharmacy expenses. (Journal of Environmental and Occupational Medicine, 09)
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%
1985 1995 2007
Obesity in America
• Existing medical treatment system:– Designed to “manage” chronic disease…ATF
10+ yrs– Early Detection and Disease Management is
NOT Prevention– Lacks effectiveness - chronic disease. Why? – Fails to address the causes i.e. Largely Peoples’ diet and lifestyle habits
Very Good News …that’s oddly still largely a secret
75-85% HC spending focused on treating:Preventable diet and lifestyle-based
conditions (NIH, CDC, WHO)
Majority of chronic illness is preventable
Chronic illness: - late stage of health-disease
continuum - a continuum that has proven
modifiable
There’s No Argument
New Insights and Approaches are Needed
Empowering Health Response-Ability
LifeStrive Health Promotion System
• Alerts & Informs Individuals ↓ Barriers ↓ Costs
• Compliments Medical Care ↑ Efficiencies ↓ Burden
• Enables Health Response-Ability ↑ Inside-out Health Care
• Inspires Participation Personalized – Uniquely Informative Uniquely Supportive
Trend Tracking Before Diagnosis is the Key!
• We cannot prevent what we cannot predict• Predicting, preventing and mitigating chronic
and critical disease requires much more comprehensive tracking of trends, than has been available to date in the marketplace
Individuals, Corporations & Government- Know Their Health Trend- Know What To Do About It
The Cost-Shift
20
45
3125
31
9
1913 15
29
60
42
34
24
46
37
72
57
45
54
3945 47
60
71
0
25
50
75
Did not fill a
prescription
Did not see
specialist when
needed
Skipped
medical test,
treatment, or
follow-up
Had medical
problem, did
not see doctor
or clinic
Any of the four
access
problems
TotalInsured all year, not underinsuredInsured all year, underinsuredInsured now, time uninsured in past yearUninsured now
Source: The Commonwealth Fund Biennial Health Insurance Survey (2007).
All of this bad news has created unprecedented opportunity for products that deliver the solution:
• Can fill the gaps created by “cost shift”• Remove cost and access barriers to critical
health/prevention services• Help employers “soften the landing” when they raise
deductibles or premium contributions• Protect people from unforeseen health care expenses
and medical bankruptcy• *62% of all bankruptcies in U.S.• *78% had health insurance• *$17,749 average amount owed*Harvard University 2007
• HIPAA Exemption• Critical Illness is really chronic illness at a clinical
endpoint• The critical, chronic and degenerative illnesses
AWD insures against account for 75-85% of employer-sponsored health plan costs, not to mention lost productivity, etc…
Why Position a Wellness Program in a Voluntary or Supplemental Benefit?
When you are able to:• Dramatically improve awareness of key risk factors,
follow up with properly individualized education and inspirational support, you can help to prevent and mitigate chronic illness and associated expenses… i.e. LifeStrive
• Have voluntary benefits cover the costs of LS, while providing important employee financial safeguards…
• Result: These benefits make sense to employers and employees on a whole new level…
LS campaign:Email and Personal
LettersLS direct + Employer
direct
Employees notified that their personal web
portal is ready
Insured logs in, prints lab requisition, chooses
local lab
Insured visits lab (5,000+ locations)
Linked to personal results & interpretative
report < 48 hrs
Insured completes Health and Lifestyle
Assessment
Personal Health Promotion Report & web
mini courses for awareness & actions
Communication to remind & inspire to
“take next step”LS direct + Employer
direct
Process Flow
LifeStrive® Comprehensive Wellness Panel
50 individual tests provide thorough biochemical assessment
Lipid panel (cholesterol, HDL, LDL, the risk ratio, triglycerides)Complete Blood Count (CBC) (WBC, RBC, Platelets, Hct, Hgb)Fluids and ElectrolytesThyroid Panel w/TSHLiver Enzyme PanelKidney PanelGlucose (Diabetes)Complete Mineral Profile
• Market Value of lab testing & reporting alone exceeds $700 • Lab testing is only the start of the health promotion process
with LifeStrive
5 large buttons lead consumer to each step in
health promotion.
Users can track, compare and store all relevant health
information
Testing performed through our system is
automatically populated into
member reporting interface
One step reporting to physician, health coach, etc…
Message center serves as single
source of truth for all health-related
messages
Courses currently enrolled in and recommended. We track
ongoing participation and completion for incentives
Group Aggregate Reporting
Group Aggregate Reporting
Predictive Modeling Relationships
Predictive Analysis-High Activity Members
Predictive Analysis-Clinical and Compliance Gaps
Predicted Costs By Member
versus
Actual Costs Experienced that Year
Accuracy of Predictive Model
Workers Comp
Disability, absenteeism
Global Risk Management is here!
42
•Foreword by David M. Walker Fmr. US Comptroller General
•Demonstrates commitment to creating a culture of wellness.
•Wellness recommended by doctors, not employers/brokers.
•Easy implementation
New Book Creates Context for “What’s Next”
Questions?
Support Materials at www.lifestrive.com/awdsupport
Contact: Richard Perryman at (602) 956-3401 or [email protected]