Lifestyle Management Programs May Not Help Bottom Line
PR Web |
A recent study exploring trends in corporate wellness underscores the value of initiatives aimed at reducing chronic illness, but found no net savings at all from lifestyle management programs--those aimed at reducing health risks through initiatives focused on weight loss or stress management. +
The study, conducted by RAND researchers and executives of
The study examined more than 67,000 people eligible to participate in
Cost Savings from Chronic Disease Management
"Yes, it's not surprising that the majority of the savings were due to improved management of chronic disease conditions," says Lockton's Director of Health Risk Management
"At Lockton, we stratify an employer's workforce membership by risk, noncompliance, cost and condition in order to prioritize actionable targets to assist an employer's health plan in closing gaps in care. In a sample population, non-compliant high-risk members cost almost
"The study noted that the decrease in costs was primarily due to a 29 percent reduction in hospital admissions. In addition, improved management of chronic disease often reduces emergency room visits, which, according to Lockton's InfoLock data warehouse, costs an average of 9.24 times more than a physician office visit. These decreases in admissions and emergency room utilization represent low hanging fruit opportunities for shorter-term cost reduction."
Commenting on
"There can be significant variation in program performance due to lack of employer-specific member identification, poor member engagement and/or the level of comprehensive care gap and improved clinical outcome strategies and interventions," she says.
The Bottom Line for Lifestyle Programs
Researchers acknowledged that lifestyle programs like smoking cessation or weight loss may indeed save organizations money, but over a longer period of time. But the study concludes that employers and policy makers "should not take for granted that lifestyle management components can reduce health care costs or even lead to net savings."
"I agree with the study's conclusion that lifestyle management programs should not be implemented for the sole purpose of attaining reduced health care costs or a net savings. However, researchers noted that the greatest savings achieved resulted from those participating in both the disease management and the lifestyle management programs, including a 66% drop in hospital admissions. The improved financial performance may be due to better targeting of participants, the study suggests, and I agree: Targeting members with disease management opportunities and additional lifestyle issues replicates the right approach to risk reduction," adds Hansum.
Hansum says Lockton's strategic model is built on the concept that claims follow risk, where risk reduction becomes an outcome of disease and lifestyle management programs. While highly compliant workers cost less than those who are non-compliant, both categories need to reduce risks to slow the progression of disease and reduce costs.
"At one client, moderate risk members cost
Elimination of Lifestyle Programs Unlikely
Researchers stopped short of suggesting the elimination of lifestyle management programs that didn't demonstrate big cost savings:
"That would be unlikely," said
Hansum concurs, concluding: "Improving or eliminating lifestyle risks is the first line of defense to keep workers healthy and to mitigate the progression of disease. It seems unlikely that incentives or focus on lifestyle risks will be eliminated at any employer who is serious about health strategies to improve the health, well-being and productivity of their workforce. Comprehensive wellness models employ multi-layer strategies that target the healthy, as well as those most at risk and non-compliant, including the high cost/complex cases. Employers who use them are typically committed to transforming to a healthy culture and environment, including financial health, work-life balance and human capital investment."
If you have any questions about wellness initiatives at your organization please reach out to me by email at RRuotolo(at)Lockton(dot)com
+ http://robruotolo.com/wellness-study-lifestyle-management-programs-may-not-help-bottom-line/
Read the full story at http://www.prweb.com/releases/2014/04/prweb11769511.htm
Copyright: | (c) 2014 PRWEB.COM Newswire |
Wordcount: | 912 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News