Wednesday, June 20, 2012

It’s a fact: Educated lifestyle choices drive down medical costs

Do you know the per dollar yearly health care costs for your employees?  Has anyone analyzed the medical claims for your employee population?  Would you believe that 87.5% of medical costs are a result of lifestyle?

Imagine if you could educate and incentivize your employees to make healthier choices and live a more healthful lifestyle.  You’d cultivate a healthier, more productive work force and both you and your employees would save money.  This is just what some county employers are doing in Ohio and the results are impressive.

According to “Counties saving big on health care costs <http://www.middletownjournal.com/news/middletown-news/counties-saving-big-on-health-care-costs-1379901.html> ” in the May 22 issue of the Middletown Journal <http://www.middletownjournal.com/news/middletown-news/counties-saving-big-on-health-care-costs-1379901.html> , counties in Ohio are reaping the benefits of strategic wellness planning.  Below are a few county initiatives and results.
 

With 3,200 employees and $50 million in annual medical care costs, Montgomery County formed a task force in 2010 to address its medical costs, which had been rising about 11 percent per year since 2005, higher than the nine percent national average.  When it was uncovered that the bulk of costs were from illnesses related to lifestyle choices, such as high blood pressure and diabetes, they decided to implement a wellness incentives and a high deductible health care plan.  The changes are credited with holding down rising health care costs by up to $4 million a year.

Greene County, with health care costs running approximately $11 million per year, has offered wellness incentives to its 850 full-time employees for the past five years.  The county has 22 health goals that employees may choose from, such as maintaining a recommended BMI, keeping cholesterol under 200, getting certain health screenings or meeting a fitness goal.  Employees who meet a set number of goals get one month of their health insurance contribution waived.  The county determined that the wellness program has reduced the cost of health care by two percent and has resulted in a decline in the number of catastrophic illnesses.

Other counties in the state are getting on board with wellness programs and looking for ways to reduce costs.  Warren County, which spent about $16 million on health care benefits in 2011, is looking to reduce costs by bringing health-related programs to the office.  Last year, it offered employees an extra paid day off work if they participated in a blood screening program.  Now there’s an incentive!  Test results from the screening were sent to employees’ homes or directly to their doctors. More than 72% of employees participated in the screening.

While some still question the cost savings associated with wellness plans, numerous studies show that worksite wellness programs consistently generate cost savings.  When working with a wellness provider, it is important to select one who is certified in calculating a return on investment in your program.  Wellness programs generate a wealth of meaningful data and savings can be measured by carefully tracking this data.

Wellness Workdays works with counties throughout the country to implement strategic wellness plans that save money and improve productivity.  Check out our web site at www.wellnesswordays.com <http://www.wellnesswordays.com>  <http://www.wellnesswordays.com>  to learn more.

1 comment: