The number of companies taking action to combat chronic health conditions among employees and their dependents increased nearly 30 percentage points in 2008, according to a recently released survey by Hewitt Associates, a global human resources consulting and outsourcing company.
The cost of chronic conditions in the U.S. is estimated by the Milkin Institute to be $1.3 trillion annually, with $1.1 trillion spent on lost productivity and another $277 billion on treatment. The Milken Institute is a publicly supported independent think tank. For diabetes alone, Hewitt estimates that a typical employer with 9,500 employees and 500 pre-65 retirees spends $18 to $22 million on direct medical care for its diabetic population.
According to multiple medical research reports, an estimated 30 percent of an employer population has an undiagnosed chronic condition and another 25 percent may be considered “at risk” for developing one. Hewitt’s survey of 343 large U.S. employers found that almost two-thirds (65 percent) continue to make significant investments in improving the health and productivity of their workforce by pinpointing chronic illnesses within their employee populations. Hewitt advises employers to:
1. Perform a detailed review of members’ healthcare claims to determine the prevalence of chronic conditions within their population and ensure they are not missing undiagnosed individuals or individuals who are at risk.
2. Improve techniques used to reach targeted enrollees. Not being able to reach employees and their dependents is one of the leading barriers to engagement.
3. Measure program performance. Work with vendors to set up aggressive performance guarantees and hold them accountable for meeting those goals.
4. Implement more compliance incentives. For example, consider a value-based design approach, which can reduce or remove financial barriers to care and improve compliance by offering certain condition-specific medications at reduced or waived co-pays. Alternatively, implement programs through which members can earn wellness points that can be exchanged for additional dollars put into Health Savings Accounts or Flexible Spending Accounts or toward decreasing employees’ healthcare premiums.
5. Communicate and market effectively. Deliver appropriate messages to the right audiences with planned frequency.
6. Launch condition management programs with the same level of effort as the company would apply to introducing a new product or service.
7. Address any employee concerns about confidentiality.
Source: Challenges for Health Care in Uncertain Times, Hewitt Associates.
