The Impact of the Highmark Employee Wellness Programs on 4-Year Healthcare Costs

03/07/08

Permalink 10:00:03 am, by damageva Email , 179 words, 398 views   English (US)
Categories: Health, U.S., Academic Study/Journal Article, Savings, Cost-Benefit Analysis, Costs and Benefits

The Impact of the Highmark Employee Wellness Programs on 4-Year Healthcare Costs

Abstract:
Objective: To determine the return on investment (ROI) of Highmark Inc.'s employee wellness programs.

Methods: Growth curve analyses compared medical claims for participants of wellness programs versus risk-matched nonparticipants for years 2001 to 2005. The difference was used to define savings. ROI was determined by subtracting program costs from savings and alternative discount rates were applied in a sensitivity analysis.

Results: Multivariate models estimated health care expenses per person per year as $176 lower for participants. Inpatient expenses were lower by $182. Four-year savings of $1,335,524 compared with program expenses of $808,403 yielded an ROI of $1.65 for every dollar spent on the program.

Conclusions: Using sophisticated methodology, this study suggests that a comprehensive health promotion program can lower the rate of health care cost increases and produce a positive ROI.

by Barbara L. Naydeck, MPH; Janine A. Pearson, PhD; Ronald J. Ozminkowski, PhD; Brian Day, EdD; and Ron Z. Goetzel

Journal of Occupational & Environmental Medicine.
Volume 50, Issue 2; February, 2008; Pages 146-156
http://www.joem.org/pt/re/joem/abstract.00043764-200802000-00007.htm;jsessionid=HRbBWVDf0YBWLtnNjlXxJL9KR82RbZ2PN3yhZgZq2StJWHp7J2Ry!1253064403!181195628!8091!-1

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Environmental Valuation & Cost Benefit News covers legal, academic, and regulatory developments pertaining to the valuation of environmental amenities and disamenities, such as clean air, trees, parks, congestion, and noise. We apprise the reader about ways in which costs and benefits are measured, and the results of empirical studies. We hope that this information will allow public and private organizations to comprehend the risks and benefits of various actions, help disputants to resolve conflicts equitably and efficiently, and improve the quality of public policies. We will only discuss issues related to the empirical quantification of private and social costs and benefits and damages, and summarize information from daily newspapers, academic journals, legal publications, court decisions, professional newsletters commissioned studies, and on-line services. This newsletter is dedicated to the principal that all policies place values upon life, liberty, and the pursuit of happiness. We believe that more information, explicit specification of assumptions, and rigorous analysis can help our society to better meet these ends. This site will increasingly serve, in conjunction with others, as a valuation database. We will include a wide range of studies, including non-environmental reports, because omission of a factor effectively values it at zero, and biases decisions. Heavy traffic has caused several site crashes. We are attempting to correct these problems. Apologies for any inconvenience.

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