Health Care Facts
Total US Health Care Costs
Source: Centers for Medicare & Medicaid; 2008 projected.
Constraining Medical Costs
Determinant of Health Status
Source: Mercer Management Journal 18, "The Case for Consumerism in Health Care"
Health Care Costs Represent Largest Sector
Component of Gross Domestic Product
17% = $2.4 Trillion
Source: Auto, National Defense, Housing, Food; Bureau of Economic Analysis Q1 2006 Health, Centers for Medicine & Medicaid; 2006
Benefits of Worksite Wellness Programs
Companies receive many benefits after implementing a worksite wellness program in addition to reducing costs. They include increased employee morale, improved employee health, reduced workers compensation claims, reduced absenteeism, and increased productivity.
Source: National Business Group on Health, 2005
Risk Factors for every 100 Employees
Companies want to know what type of risks their employees face. Government statistics show how many risk factors exist for every 100 employees. Unless your work force is very different from national demographics, you can expect to experience similar percents within your employee population.
44 suffer from stress
24 don't exercise
38 are overweight
26 have high cholesterol
6 are diabetic
21 smoke
31 use alcohol regularly
20 don't wear seatbelts
12 are asthmatic
25 are at risk of heart disease
Source: Department of Health and Human Services, 2007
How companies are responding to increased health care costs
In 2008, U.S. health care costs will total approximately $2.2 trillion or 16% of the gross domestic product. It is projected that companies will pay an average of $9,312 per employee for health care. Employees are increasingly being asked to pay a greater share of these costs. This share has increased from $1,284 in 2003 to $2,040 in 2008 - a 59% increase in only 5 years.
Source: Towers Perrin 2008 Health Care Cost Survey
How companies are responding to increased health care costs
Employers have made a variety of adjustments to deal with increased health care costs, including increased copays, higher deductibles, and switching providers. While initially these adjustments were encouraging, they have had limited effects in reducing health care costs in recent years. An alternative approach is demand managemnt. This focuses on the employee, helping them live healthier lifestyles and become wiser health care consumers. Wellness programs are the key component to this strategy.
Source: Society for Human Resources Management, 2006
*Usually available to large companies