Increasing our efforts to prevent and manage disease has the potential not only to improve the quality and length of life, but also to decrease health care spending.
Lab Testing - Healthscore accredited facilitiesWebsite – The individual scores will be viewable online to see personal improvement, as well as the main reasons for the particular Healthscore. Like a credit score, they can then see the specific areas they need to improve upon to increase it.Also, companies could allow their overall company Healthscore to be publicly viewable, and we would be sure to promote those that are doing the best.
Individual Healthscore – The reason there is a discount for anyone 60 or below is to get as many people as possible on board. Even if they would score low, they will test regardless just to get the discount. This will allow us to gather more accurate overall data for the company, while encouraging good health to the most number of people.Also, we thought that a score improvement of maybe 15 points could guarantee a certain discount as well.
Saves everyone money – This, in turn, will save everyone money. The employees receive discounted premiums, the companies lower their insurance costs and retain their diminishing tax deductions, and health insurance companies lower their costs of behavior-caused conditions.
Based on individual.. – Instead of people getting charged a higher rate because their co-workers have unhealthy behavior, this will more fairly charge a personalized rate.Based on results.. – Some programs now give financial incentives to employees for just enrolling in a tobacco class, but we believe the discounts should go to those who actually improve their health, not those who just enroll and don’t commit.Build awareness – The employee will know more about their own health and why they are paying their premium price. The company will be aware of its overall health.
HealthScore<br />The Credit Score for your Life<br />
Some Alarming Statistics…<br />Three out of every four health care dollars are spent treating chronic disease and seven out of ten deaths are caused by chronic disease4<br />~75%<br />
Some Alarming Statistics.…<br />At least one third of deaths in the United States are attributable to a handful of unhealthy behaviors: smoking, poor nutrition, and lack of physical activity.5<br />
Some Alarming Statistics.….<br />A study by the Milken Institute found that, if the U.S. can make modest improvements in prevention and management of disease by 2023, we could avoid 40 million cases of chronic disease and save $218 billion annually in treatment costs6<br />
Avoidable Treatment Costs and Productivity Losses, 2023<br />
Workers<br />The recession has caused a lot of stress for workers, and some have seen their healthy habits go right out the window as a result. A recent survey from ZoneDiet.com found that 25 percent of Americans are turning to comfort food more because of the economy.<br />
Survey<br />A survey of about 500 human resources and benefit executives by professional services firm Towers Perrin found:<br />50 percent of companies have or will introduce or increase investments in wellness and health promotion in 2009 and 2010.<br />32 percent have or will introduce or increase financial incentives, such as bonuses or premium discounts, for wellness or health promotion activities in 2009 and 2010. Another 30 percent are considering this action.<br />45 percent say they are considering introducing or increasing penalties for nonparticipation in wellness or health promotion activities.<br />
Case Study<br />Financial services firm USAA has been running a wellness program for five years.<br />“We think 50 to 80 percent of our medical costs are related to people who are overweight,” says Dr. Peter Wald, enterprise medical director for the firm, which has 20,000 employees.<br />
Employee Opportunity<br />Direct Benefit = Discount<br />Healthier employees are <br /> happier<br />Happier Employees are more productive <br />Cutting down on the huge amounts of unproductive workers<br />
Company Opportunity <br />The median health care expense per employee last year was $7,173, according to a recent survey by Watson Wyatt and the National Business Group on Health.<br />But companies save from $1.49 to $4.91 in health-related expenses for every dollar spent on wellness programs, according to the U.S. Department of Health and Human Services.<br />Healthier employees are more <br /> productive <br />Company pays collectively less for <br /> more healthier employees<br />
Insurance Company<br />Healthier clients equates to lower liability<br />Saves money in the long run by decreasing probability of chronic diseases<br />Companies are rapidly losing customers as prices increase <br />
How it all works:<br />Continual Employee Health Improvement<br />
How it all works:<br />Lab Testing<br />BMI, Blood, and Urine<br />Website:<br />Personal score & <br />main reasons why<br />Overall company <br />health score (if they allow it)<br />
2 Data Sets<br />Individual Healthscore (1-100) – disclosed only to the individual and health insurer<br />85+ means a 20% discount<br />70-85 means a 15% discount<br />60-70 means a 10% discount<br />60 or below means a 5% discount<br />Non-identifying Overall Company Info<br />% of Smokers, % of Obese, Etc.<br />If improvement, less overall insurance rate<br />
Product Promise<br />Align individual health with financial incentives<br />Motivate good, healthy behavior<br />Immediate deterrents to unhealthy lifestyle choices<br />Saves everyone money <br />
How We’re Disruptive<br />Standardization<br />Consistent scoring no matter the insurer or company<br />More in-depth & accurate<br />Based on individual as opposed to the company pool<br />Based on results rather than enrollment<br />Creating awareness<br />
We are creating the standard in this field rather than fighting it.</li></li></ul><li>Potential Risks<br />Legal Issues & Regulations<br />Testing<br />Courting Health Insurers<br />
Legal Issues & Regulation<br />Unforeseen legal hurdles<br />Staggered provisions, government mandates<br />Healthcare industry regulation is in state of flux<br />Difficult to anticipate future regulation that could harm business<br />Data Privacy/Sensitivity<br />Moral and legal issues regarding client data<br />
Testing<br />Consistency:<br />Tests for one person cannot differ from clinic to clinic<br />Accuracy:<br />There is a correlation between BMI and overall health however…<br />Accessibility:<br />Not enough testing facilities<br />Fraud:<br />People cheating test(s)<br />
Courting Health Insurers<br />Health Insurers might not be onboard<br />Resist disruption/standardization<br />
References<br /> Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009 Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight Chronic Disease. 2009. Available at: http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf <br /> Centers for Disease Control. “Chronic Disease Overview” [Fact Sheet]. March 2008. Available at: http://www.cdc.gov/nccdphp/overview.htm <br /> Woolf, SH. “The Big Answer: Rediscovering Prevention at a Time of Crisis in Health Care.” Harvard Health Policy Review, 7(2): 5-20. Fall 2006. <br /> Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009 Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight Chronic Disease. 2009. Available at: http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf <br /> Mokdad AH, Marks JS, Stroup DF, and Gerberding JL. “Actual Causes of Death in the United States, 2000,” JAMA, 291: 1238-1245. 2004. <br /> DeVol R, Bedroussian A, et al. “An Unhealthy America: The Economic Burden of Chronic Disease.” Santa Monica, CA: The Milken Institute. October 2007. Available at: http://www.milkeninstitute.org/pdf/ES_ResearchFindings.pdf <br />