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The editors at Human Resources MBA Degree Guide decided to research the topic of:
Back to the Healthcare Future
- 274: Number of times U.S. healthcare costs have increased since 1950.
- 8: Number of times the average cost of all other goods have increased since 1950.
- 20: in 2013, the percentage of GDP healthcare consumes, or $2.8 trillion.
- 25: percentage of GDP healthcare will consume if current trends continue, according to the Congressional Budget Office.
- Between 70% and 75% of the $2.8 trillion spent annually in the U.S. on healthcare is invested in the treatment of preventable conditions, but less than 5 percent goes toward chronic disease prevention
- Why so high?
- The cost of medical care in U.S. vs. the World; keep in mind that the U.S. ranks 37th in global life expectancy.
- Health spending as a percentage of GDP:
- US: 20 percent
- France: 11.6
- Canada: 11.4
- UK: 9.6
- Spain: 9.6
- Australia: 9.1
- Chile: 8
- Cost of a routine doctor's office visit:
- US: $175
- Chile: $38
- Canada: $30
- France: $30
- South Africa: $25
- Spain: $11
- Argentina: $10
- Bypass Surgery
- US: $150,515
- Australia: $43,230
- South Africa: $37,044
- France: $22,844
- Spain: $17,437
- UK: $14,117
- Chile: $12,401
- Argentina: $8,882
- Baby Delivery, cost of hospital plus physician
- US: $16,653
- Australia: $6,846
- France: $3,541
- Chile: $2,992
- UK: $2,641
- Spain: $2,265
- South Africa: $2,035
- Argentina: $1,188
- Drugs: Lipitor (cholesterol)
- US: $145
- Chile: $60
- France: 48
- UK: $43
- Argentina: $39
- Spain: $13
- South Africa: $11
- Faced with relentless growth in health care spending, employers' interest in health promotion and wellness programs has increased dramatically over the past five years.
- $10,558: average cost of providing health care per employee to businesses.
- Definition: "workplace wellness" refers to programs designed to improve the health and well-being of employees (and their families) in order to enhance organizational performance and reduce costs.
- Workplace wellness is a $6 billion industry in the United States, with an estimated 500 vendors now selling the programs.
- 92: percentage of U.S. companies with more than 200 employees offering a wellness program.
- Medium-to-large companies now spend an average of $521 per employee per year on wellness incentives (gift cards for losing weight, for instance), double the $260 in 2009.
- 20: percentage of participation rate in typical wellness programs, a poor participation rate by any standard.
- So...why do so many wellness programs have less than 50 percent participation from employees?
- Everyone knows healthier is better. But for wellness program success, you need to give employees a reason to sign up and stick with it. The right kind of incentive will inspire this behavior, increasing participation and ROI.
- Rewards and Participation
- It's important to offer rewards for wellness program participation.
Categories of activities typically are considered to be part of wellness programs
- risk identification tools: health risk assessments and biometric screenings, such as blood-pressure and cholesterol levels;
- behavior modification programs: health coaching, tobacco cessation, weight management, nutrition and diet, exercise, and workplace competitions/contests;
- educational programs: health fairs and seminars, and online health resources; and
- changes to the work environment: altering buildings and grounds to encourage walking, and healthier foods in workplace cafeterias and vending machines.
- Fact: Incentives and rewards: most employers offering financial incentives for wellness are tying the incentives to participation and completion of programs.
- Fact: Some employers are tying rewards or penalties to the attainment of certain health benchmarks, such as body mass index or blood-pressure level.
- A recent meta-analysis aggregated peer-reviewed controlled studies of employer wellness programs and reported an average 3.27:1 return in the form of reduced medical costs over three years and 2.37:1 in reduced absenteeism costs over two years.
Examples of Wellness Initiatives
- IBM: a global wellness program places specific focus on helping the global workforce:
- receive recommended clinical preventive services
- adopt physically active lifestyles
- achieve and maintain healthy weight
- establish and maintain good nutrition
- become and stay smoke-free
- Google: The wellness program offered at Google/'s California headquarters includes a variety of on-site services that allow busy employees to accomplish many of their miscellaneous errands without leaving the workplace.
- Employees enjoy services ranging from massage therapy to fitness classes. What were Google's three global health intitiative points?
- Offer excellent coverage.
- Offer access to quality healthcare.
- Design and develop programs to keep Googler's happy.
- Intel: Health for Life program, in which individuals undergo a 30-minute exam that includes biometric screenings at one of the company's onsite wellness centers. Then they use their test results to complete a health risk assessment.
- Finally, a health coach contacts the employee to discuss their risk assessment and develop a plan to address their personal health needs. Additional in-person or telephonic health coaching is also provided as needed.
- Apple: Wellness program consists of: Corporate wellness screening, which includes body fat analysis, flexibility screening, carpal tunnel screening. Also measured: PSA, blood chemistry.
- The future, according to the Affordable Health Care Act (Obamacare)
- In 2015, the Affordable Care Act will raise the maximum allowable wellness program reward from 20 percent of the cost of healthcare to 30 percent. In the future they could go as high as 50 percent, freeing corporations to get more creative with wellness.
Sources
- http://www.huffingtonpost.com/2013/05/25/workplace-wellness-programs_n_3333974.html
- http://healthland.time.com/why-medical-bills-are-killing-us/#ixzz2avtQyqWR
- http://www.sltrib.com/sltrib/money/55293321-79/percent-health-company-employees.html.csp
- http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/26/21-graphs-that-show-americas-health-care-prices-are-ludicrous/
- http://www.incentivemag.com/Incentive-Programs/Engagement/Articles/The-New-Wellness-Program-Is-Built-for-the-Long-Term/?cid=eltrInc
- http://theirf.org/research/content/6078727/energizing-workplace-wellness-programs-the-role-of-incentives-and-recognition/
- http://intelispend.com/campaign/wellness1/?utm_source=google&utm_medium=ppc&utm_campaign=employeewellness
- http://www.ibm.com/ibm/responsibility/employees_global_wellness.shtml
- http://www.managementparadise.com/forums/human-resources-management-h-r/223178-employee-benefit-apple-inc.html
- http://www.businessinsurance.com/article1000793
- http://www.corhq.com/blog/post/corporate-wellness-conference-2011-recap/#.UgEV8z9h-so
- http://www.applemm.org/Corporate-Wellness.html
