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ROI for Employee Wellness Programs_Powerpoint
- 1. The Return on Investment for Employee Wellness Programs
- 2. Financial Awareness • Employee Health – Hypertension – Cholesterol – Glucose – Weight/ BMI – Tobacco User • Absenteeism
- 3. $636 $715 $778 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 Figure 1. Average cost per individual with hypertension based on age demographic, 2010. 18-44 45-64 65+
- 4. $5,000 $12,000 $10,000 $30,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Prediabetes Previously undiagosed with diabetes Diagnosed with diabetes and have no complications Diagnosed with diabetes and do have complications Figure 4. Annual cost for individuals with prediabetes and diabetes, 2007.
- 5. Onsite Clinics • Offsite costs – Health care ($224,461)13 – Lost productivity ($113,883) 13 • Onsite costs – $171,33213
- 6. Biometric Screening • Screenings to identify risk factors and chronic conditions – Hypertension, diabetes, cholesterol, metabolic syndrome • Onsite or offsite (PCP) – Fax back forms
- 7. Return on Investment (ROI) • Wellness coaching • Employee Wellness Programs (EWPs)
- 8. Centra Panoramic • Services offered – Account management – Biometric screenings – Web based portal – Lunch and learns – Wellness challenges – Incentives campaigns – Wellness coaching – Onsite 8 week programs
- 9. References1. Centers for Disease Control and Prevention. High Blood Pressure Fact Sheet. http://www.cdc.gov/dhdsp/data_statistics/fact_sheets/fs_bloodpressure.htm. Accessed November 20, 2015. 2. United States Department of Health & Human Services. Statistical Brief #404: Expenditures for Hypertension among Adults Age 18 and Older, 2010: Estimates for the U.S. Civilian Noninstitutionalized Population. http://meps.ahrq.gov/mepsweb/data_files/publications/st404/stat404.shtml. Accessed November 2, 2015. 3. Centers for Disease Control and Prevention. High Cholesterol Facts. http://www.cdc.gov/cholesterol/facts.htm. Accessed November 20, 2015. 4.Centers for Disease Control and Prevention. Workplace Health Promotion: Cholesterol Screening and Control. http://www.cdc.gov/workplacehealthpromotion/implementation/topics/cholesterol.html. Accessed November 2, 2015. 5. Centers for Disease Control and Prevention. Basics About Diabetes. http://www.cdc.gov/diabetes/basics/diabetes.html. Accessed November 20, 2015. 6.Diabetes Advocacy Alliance. Employers are Working to Defeat Diabetes. http://www.diabetesadvocacyalliance.org/pdf/DAA_Brief_Employer_2013_07_24A.pdf. Accessed October 2, 2015. 7. Centers for Disease Control and Prevention. Adult Obesity Facts. http://www.cdc.gov/obesity/data/adult.html. Accessed November 20, 2015. 8. Prater T, Smith K. Underlying factors contributing to presenteeism and absenteeism. Journal of Business & Economics Research. 2011; 9(6):1-14. 9. Indiana. Cost of Employee Tobacco Use. http://www.in.gov/quitline/2343.htm. Accessed November 2, 2015. 10. Navarro C, Bass C. The cost of employee absenteeism. Compensation & Benefits Review. 2006; 38(6): 26-30. 11. Cawley J, Rizzo JA, Haas K. The association of diabetes with job absenteeism costs among obese and morbidly obese workers. J Occup Environ Med. 2008; 50(5):527-34. 12. Goetzel RZ, Carls GS, Wang S, et al. The relationship between modifiable health risk factors and medical expenditures, absenteeism, short-term disability, and presenteeism among employees at novartis. J Occup Environ Med. 2009; 51(4):487-99. 13. Chenoweth, D. H., PhD. & Garrett, J., C.O.H.N. /C.M. Cost-effectiveness analysis of a worksite clinic: Is it worth the cost? AAOHN Journal; 2006: 54(2), 84- 91. 14. Wellness Coaches USA. ROI – WCUSA’s Onsite Coaching Model Shows ROI of 4:1 or $700 Savings per Employee. http://www.wellnesscoachesusa.com/news/wellness-coaches-usa%E2%80%99s-on-site-coaching-model-shows-roi-of-41-or-700-savings-per-employee-2. Accessed October 29, 2015. 15. Kocakulah MC, Cherry A, Morris, JT. Investing in company wellness programs: Does it make financial sense? Journal of Health Management. 2013; 15(3):463-470. 16. Benavides AD, David HF. Public Personnel Management. 2010; 39(4): 291+.
Editor's Notes
- Hypertension Blood pressure is the force of blood in the body pushing against the walls of the arteries that are responsible for carrying blood from your heart to other parts of the body. While it is normal for blood pressure to rise and fall throughout the day, if blood pressure stays high for a long period of time it can be damaging to the heart and cause health problems. High blood pressure is known as hypertension.1 Hypertension increases the risk of heart disease and stroke, which are the leading causes of death in the United States today.1 At least 70 million American adults (29%) suffer from hypertension. 1 That is equal to 1 in every 3 adults1 Hypertension costs the nation around $46 billion annually.1 This amount includes the cost of health care services, medications to treat hypertension, and absences from work (absenteeism = productivity loss) 1 In 2010, annual expenditures for individuals with hypertension reached about $733 per adult.2 Cholesterol As cholesterol begins to build up in an individual’s arteries, the arteries in turn begin to narrow, and the flow of blood becomes more constricted.3 At least 73.5 million adults (31.7%) in the United States have high LDL cholesterol3 Less than 1 out of 3 (29.5%) have their high LDL cholesterol under control, and less than half (48.1%) are getting treatment for their high LDL cholesterol. 3 High LDL cholesterol puts individuals at nearly twice the risk of developing heart disease in comparison to individuals with healthy LDL cholesterol levels. 3 In 2010, the economic costs of cardiovascular diseases and stroke were estimated at $444.2 billion, including $272.5 billion in direct medical expenses and $171.7 billion in indirect costs. 4 Glucose Diabetes is a condition in which blood glucose levels reach above normal levels.5 Diabetes prevents the body from producing enough insulin or from using its own insulin. Insulin is necessary for transporting glucose into the cells of our bodies and without it the sugars in our bodies begin to build up in the blood. 5 Diabetes can result in health conditions such as heart disease, blindness, kidney failure, and lower-extremity amputations. 5 Diabetes is the 7th leading cause of death in the United States. 5 In 2012, individuals with diabetes incurred medical costs of about $13,700, with $7,900 of that directly related to their diabetes.6 One large insurer reported in 2009 that its studies showed the following annual health care costs for people with prediabetes and diabetes: $5,000 for a member with prediabetes 6 $12,000 for those with previously undiagnosed diabetes6 $10,000 for those with diabetes who did not have complications6 $30,000 for those with diabetes with complications6 Weight/ BMI About one-third of adults in the United States are obese (34.9% or 78.6 million)7 Health conditions associated with obesity include heart disease, stroke, type 2 diabetes and some types of cancers. 7 The U.S. spent around $147 billion in 2008 towards the medical costs of obesity; the medical costs of individuals who are obese on average are about $1,429 higher than individuals of normal weight. 7 The costs per person who suffer from obesity are about $16,900 for women and about $15,500 for men.8 Tobacco User The estimated costs of a smoker average $3,391 per smoker per year in direct medical costs and productivity.9 $1,623 in excess medical expenditures9 $1,760 in lost productivity9 $8 in smoking-attributable neonatal expenditures9 Absenteeism “Habitual failure to appear, especially for work or other regular duty.”10 According to the 2005 CCH Unscheduled Absence Survey, employee absenteeism cost companies an average of $660 per employee in 2005.10 Average absenteeism cost of a morbidly obese nondiabetic worker is about $177.11 Morbidly obese male employees who are diabetic cost an extra $924 in relation to absenteeism in comparison to a healthy-weight nondiabetic male, and more than five times the extra cost of a morbidly obese nondiabetic man.11 Obese men cost an employer an extra $70 in average absenteeism costs if he is nondiabetic and would cost more than six times that, $429, if he were diabetic.11 Obese women employees cost an employer an additional $134 on average, in absenteeism costs if they are nondiabetic, but more than twice that, $297, if she is diabetic.11 Morbidly obese women costs an employer about $226 in average absenteeism costs if she is nondiabetic but at least $398 if she is diabetic11 Absenteeism rates range from 0.0% to 6.3% among employees with zero to eight risks12 For employees with zero risk factors an estimated 4.1 workdays were lost, and 12.6 days for those with four or more risks.12 Productivity loss was estimated at 11.9% to 28.3% for employees with zero to seven or more health risk factors12 2.4% additional productivity loss was associated with each additional risk12 Employees at moderate risk (three to four risk factors) were found to be 6.2% less productive than employees of lower risk (zero to two risks), while employees of high risk (five or more risk factors) were about 12.2% less productive.12
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- Clinics Onsite Nurse Practitioner or Physician Assistant. Provide improved access to care for employees, allowing them to receive care without leaving the workplace. Benefits can be seen in reduced healthcare claims and reduced absenteeism. Ability to treat immediate care needs, as well as, assist employees with improving chronic conditions. Part-time and full-time clinic options are available.
- Biometric screenings Measures Height Weight Resting heart rate Blood pressure Blood glucose levels Blood lipid levels BMI Waist circumference
- Wellness Coaching According to the Health & Productivity Management (HPM) Return on Investment Model (ROI Model), over a 5-year time period, wellness coaching does result in an average ROI of 4-to-1 or $700 per employee.14 Employee Wellness Programs (EWPs) HPM found that over a 2-year time period, the ROI model projected savings from health risks produced a 3.7 to ROI or $940 per employee ($300 per employee in healthcare costs and about $640 per employee in productivity costs).14 Another article found that for every dollar an employer invested in EWPs, it could be expected that at least $3.50 would be returned by the end of a three year timespan, however comparable reflected a $1.50 return by the end of year three.15 However , with medical costs rapidly expanding every year, it is difficult to place a consistent monetary value on the effectiveness of EWPs.15 EWPs that reflect the greatest return-on-investment have been found to encompass four substantial components: assessment activities, communication materials, self-help materials, and group programs.16 Only 61% of EWPs offer health risk assessments, 56% offer tobacco cessation programs, 50% utilize on-site gym centers, 48% offer healthier food options at work, 48% offer employee diet programs, 43% pay for employee gym memberships, 32% provide assorted preventative health services such as free flu shots, healthier food options in vending machines, online wellness website resources, and onsite massage therapy, 27% provide employee exercise programs, and finally only another 27% provide diet counseling sessions to their employees. 16 However, it is important to understand that EWPs cannot show a positive return on investment in only a year’s time. Most often an employer should expect to see a positive change in the health of their employees within at least 2 years of a EWP’s implementation.16
- Complete list of services offered by Centra Panoramic Wellness Account management Biometric screenings Web based portal Lunch and learns Wellness challenges Incentive campaigns Wellness coaching Face to face Telephonic Onsite 8 week programs Tobacco cessation Weight management Stress management Heart health education Diabetes education Account Manager Implements, markets, and evaluates wellness programs. Reviews employee population aggregate reporting and offers suggested actions based on population risk levels. Leads wellness program orientations. Develops customized portal. Offers customer service support to both employer’s administration staff and employees participating in the program. Plans, organizes, and promotes wellness events (e.g. biometric screenings, lunch and learns, health fairs etc.). Design a wellness plan with short and long term goals of the company. Offers assistance in developing and guiding the employer’s wellness committee. Web Based Portal Individual portal access for all eligible participants. Online central scheduling for wellness challenges and events. Access to nutrition and exercise logs. Online educational material. Access to personal health assessment. Ability to customize an incentive campaign. Annual aggregate reports, individual reports from portal assessments, and incentive reporting. Lunch and Learns Diabetes education Weight management education Stress management workshop (mental health practitioner normally leads this event) Heart health education Fitness and nutrition education