Employee wellness programs asse breakfast october 19 2006
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Employee Wellness Programs ASSE Breakfast October 19, 2006. Presented by: Amanda Hess Business Development Genesis Occupational Health. Why are medical costs out of control?. Technology Medicare/Medicaid Reimbursement Longer Life Spans/Aging Population (90yrs. by 2050)

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Employee Wellness Programs ASSE Breakfast October 19, 2006

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Employee wellness programs asse breakfast october 19 2006

Employee Wellness ProgramsASSE Breakfast October 19, 2006

Presented by:

Amanda Hess

Business Development

Genesis Occupational Health


Why are medical costs out of control

Why are medical costs out of control?

  • Technology

  • Medicare/Medicaid Reimbursement

  • Longer Life Spans/Aging Population (90yrs. by 2050)

    • In the year 2010, the proportion of the workforce greater than 54 years of age will equal the proportion under 25 years of age, i.e., 19 percent. (April 18, 2002, Edward J. Bernacki, MD,President of the American College of Occupational and Environmental Medicine (ACOEM)

  • Increases in Chronic Diseases


Healthcare costs

Healthcare Costs

“We at HHS, and employers everywhere, recognize that poor health means lower productivity and higher health insurance costs. Government, businesses and especially individuals must do more to lead healthy lifestyles. Our physical health and our economic health depend on it.”

Tommy G. Thompson

Secretary of Health and Human Services

US Department of Health and Human Services

“Prevention Makes Common Cents (September 16, 2003)”


Rising chronic diseases

Rising Chronic Diseases

  • More than 1.7 million adults in the US die of chronic diseases every year - 70% of all deaths in the US are due to chronic conditions

  • 5 major chronic diseases

    • Heart disease

    • Stroke

    • Cancer

    • Chronic Obstructive Pulmonary Diseases (COPD)

    • Diabetes


Qc health initiative 2002 survey www qchealthinitiative org

QC Health Initiative - 2002 Survey www.qchealthinitiative.org

Heart disease

  • Leading cause of death in Scott County

  • Higher average death rates than Iowa and the nation

  • 1 in 4 adults in Scott & RI have high blood pressure

    Cancer

  • Second leading cause of death in Scott County

  • Higher rates than the state and the nation

  • 2/3 attributable to lifestyle- diet, tobacco, alcohol, sedentary

    Stroke

  • Ranks third in causes of death locally

    Obesity

  • Over 64% of adults in Scott & RI are overweight or obese


Diabetes epidemic

Diabetes Epidemic

Diabetes Costs

Healthcare costs due to diabetes rose by $98 billion dollars from 1997 to 2002.


Healthcare costs1

Healthcare Costs

Obesity-related Healthcare Costs

(major contributor to musculo-skeletal injuries/conditions)

  • TOTAL $13 billion in 1994

  • $8 billion in health insurance costs

  • $2.4 billion for sick leave

  • $1.8 billion for life insurance

  • $1 billion for disability insurance

    Direct and Indirect costs for overweight or obese individuals

  • TOTAL $117 billion estimated for 2003

  • Approx. 300,000 die in US each year due to weight -related illness

    *U.S. Department of Health and Human Services, “Prevention Makes Common Cents,” Secretary Thompson’s Latest Report to the Nation, September 16, 2003.


Healthcare costs2

Healthcare Costs

Diabetes (safety story - construction worker)

  • $13, 243 per person vs. $2,650 per persons without Diabetes

  • Medical expenditures were more than 2 times greater for those with Diabetes

  • Diabetes, if untreated or undiagnosed, is a leading cause of blindness, kidney failure, heart disease, and stroke.

    *U.S. Department of Health and Human Services, “Prevention Makes Common Cents,” Secretary Thompson’s Latest Report to the Nation, September 16, 2003.


Healthcare costs3

Healthcare Costs

Tobacco Use (safety - lung disease - resp. wearers)

  • Over $75 billion in direct medical costs

  • 440,000 deaths each year

  • Single most preventable cause of death and disease

    Heart Disease and Stroke (safety story - truck driver)

  • Estimated$351 billion for 2003

    • $209 - Direct & $142 - Indirect

  • #1 KILLER of men and women


The iceberg direct indirect costs

The Iceberg Direct & Indirect Costs

Direct Costs:

  • Medical Benefits

  • Workers’ Compensation

  • Short-term Disability

  • Long-term Disability

  • Absenteeism

  • Outpatient

  • Inpatient

Indirect Costs:

  • Overtime

  • Hiring/Training

  • Lost Production

  • Decreased

    Performance

  • Decreased Morale

  • Increased Error &

    Rework

Wellmark, 2003


Healthcare costs lost time local estimates 2003

Healthcare Costs & Lost Time Local Estimates 2003

  • Severe Cardiovascular Disease (One Heart Attack)

    • Stress testing = $359 + physician fees

    • Cardiolite Stress & Rest Scans = approx. $3,000

    • Diagnostic Cardiac Catheterization = approx. $6,000

    • Cardiac Catheter with Stent = $25,000 or more

    • Coronary Bypass = $30,000 minimum

    • Cardiac Rehab = $2,300 for 36 session (12 weeks)

  • Total Cost of One Heart Attack = over $66,659

  • Over $100,000with physician fees and medications

  • Lost time- 6 days inpatient w/12 week rehabilitation


Healthcare costs lost time local estimates 20031

Healthcare Costs & Lost Time Local Estimates 2003

  • Preventable Costs - per person per year

    • Diabetes - complications and treatments can cost well over $100,000 (dialysis for kidney failure = $50,000 per year)

    • Cancer - radiation therapy costs $12,000 (not including radiologist fees) and includes 6 weeks of treatments, (chemotherapy is thousands to tens of thousands more)

    • COPD (Chronic Obstructive Pulmonary Disease)- medications$5,000-$10,000 per year + Pulmonary Rehabilitation (permanent maintenance) often leads to permanent disability

    • Sleep Disorders - can lead to injuries at work & decreased productivity


Benefits of employee wellness the bottom line

Benefits of Employee WellnessThe Bottom Line

Research indicates that comprehensive employee wellness programs can:

  • Improve employee morale and dedication

  • Increase productivity

  • Reduce absenteeism

  • Improve employee recruitment and retention

  • Allow greater control over health care costs

  • Reduce healthcare utilization (injuries & illnesses)


Measuring outcomes

Measuring Outcomes

Tangible Benefits

  • Reduced Health Care Utilization - long term (3-5 years)

  • Reduced Absenteeism due to illness - short & long term

    HRAs - Self-Reported and/or Company Records

  • Reduced # and severity of risk factors - short & long term

    Health Screens - Blood Pressure, Cholesterol, Body Fat etc.

    * Steelcase Study 1980’s tied reduced risk factors to reduced claim dollars.

    Intangible Benefits

  • Increased morale - short & long term

  • Increased productivity - short & long term

  • Improved company image - short & long term


Case studies

Case Studies

Caterpillar - Healthy Balance Program

  • projected long-term savings = $700 million by yr. 2015

    Motorola

  • $4:$1 ROI: More then 45,000 employees - disease management, flu vaccinations, cancer and other screenings, smoking cessation & telephonic nurse counseling

    Northeast Utilities- WellAware Program

  • Employees & spouses

  • includes HRA & follow-up initiatives

  • reduced preventable (lifestyle-related) medical claims by $1.4 million in 24 months

    *U.S. Department of Health and Human Services, “Prevention Makes Common Cents,” Secretary Thompson’s Latest Report to the Nation, September 16, 2003.


Case studies1

Case Studies

Bank of America

  • $5.96/$1 ROI

  • Target Population - Retirees

  • Methods - Health Risk Assessments, self-care guide books

    & other educational materials

    * Chapman, Larry, “Proof Positive: analysis of the Cost Effectiveness of Worksite Wellness,” Summex Corporation, 1996.

    Pacific Bell FitWorks

  • $3.10/$1 ROI: Reduced absenteeism by .8%, saved $2 million in one year; Reduced days spent on short-term disability by an average of 3.3 days, which saved $4.7 million

    * Blair, Susan, “The FitWorks Savings Story,” Pacific Bell, 1996.


Case studies2

Case Studies

DuPont

  • 2 year study

  • Blue Collar workers at participating sites enjoyed 14% reduction in disability days vs. a 5.8% reduction at sites not participating in the comprehensive wellness program. Net reduction in disability days was 11,726.

    *Bertera, R. “The effects of Workplace health Promotion on Absenteeism and Employee Costs in a Large Industrial Population”. American Journal of Public Health, September 1990: 1101-1105.

    Other organizations with positive outcomes:

    Steelcase, BankOne, Progressive Corp., Xerox, General Motors, Johnson & Johnson, General Mills, Blue Cross/Blue Shield of Indiana


Successful programs behavior change

Successful Programs Behavior Change

Awareness

Skill Building

Social Support

Environmental Support

Follow-up/Maintenance

Incentives, Evaluation, Modification


How to begin what to include

How to begin... What to include...

First Step: Tool for program planning, evaluation & outcomes measurement with Baseline & Follow-up Data

  • Health Risk Assessment (On-line & On-site)

  • On-site Health Screenings

  • One-on-one Follow Up

    Ongoing: Top-Of-Mind Awareness

  • On-site & On-line Educational Classes

  • Self Care Programs

    Ongoing: Builds Skills & Promotes Action

  • Fitness, Nutrition & Tobacco Challenges

  • Weight Management Programs

  • Walking Programs


Genesis occupational health wellpower program

Genesis Occupational Health WellPower Program

Incentives

  • Points Systems

  • Three-month Cycles

  • Monetary vs. Non-Monetary

  • Seasonal Campaigns

  • Tie In w/ Benefit Plans (e.g. Discounts on Contributions, Flex Spending Accounts)

  • Tierd Programs (Offer Variety of Values... Participation vs. Meeting Goals & Changing Behaviors)


Things to consider

Things to Consider

  • Comprehensive Programs (Address all stages of change & levels of awareness)

  • Confidentiality (Third party aids credibility, builds employee trust & ensures confidentiality of PHI)

  • On-site Services (Provide optimal convenience & access for better participation)

  • Follow Up (Entails customized education, referrals & resources to assist & manage high risk individuals)


Employee wellness programs asse breakfast october 19 2006

Thank you! Visit www.gohweb.com to learn more!Proudly serving Illinois & Iowa employers for more then 18 years... Amanda HessBusiness DevelopmentGenesis Occupational Health(563) 324-0696 ext. [email protected]


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