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Healthcare Cost Reduction and Employee Wellness Program Presented 8-1-05 to Rick Lamber Mega Foods.

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Presentation on theme: "Healthcare Cost Reduction and Employee Wellness Program Presented 8-1-05 to Rick Lamber Mega Foods."— Presentation transcript:

1 Healthcare Cost Reduction and Employee Wellness Program Presented 8-1-05 to Rick Lamber Mega Foods

2 The Situation Average healthcare costs are increasing 12% annually according to CDC and HHS. In 2004, health care expenditures were $1.8 trillion Average per capita health care costs in 2004 were approximately $7595. That’s a health care cost increase of approximately $911 per employee annually. A company with 100 employees will pay an additional $91,100 annually in direct rising health care costs.

3 Employers are forced to choose. –Reducing coverage –Passing costs on to employees –Bearing the brunt themselves. Employers are searching for alternative methods to reduce health care costs. The Cause……….. The Situation

4 The Cause Is A Growing Sedentary Lifestyle 75% of the population meets the definition of “sedentary”. 25% are physical activity and healthy 50% are sedentary and 25% of those have chronic conditions directly relating to a sedentary lifestyle 25% are sedentary and are beyond our help Sedentary behavior in pre 40 year olds leads to chronic conditions in their post 40 years Treatment of chronic conditions (sick care spending) is the main healthcare cost driver The 40 plus baby boom population only disproportionately inflates the rising costs

5 19961991 2003 Obesity Trends* Among U.S. Adults BRFSS, 1991, 1996, 2003 (*BMI  30, or about 30 lbs overweight for 5’4” person) No Data <10% 10%–14% 15%–19% 20%–24% ≥25%

6 The Cause Is A Growing Sedentary Lifestyle Studies show the combination of sedentary lifestyles and aging have lead to chronic conditions, increasing direct (sick care spending) and indirect (absenteeism and disability) costs. Approximately 50% or $1 trillion of the annual $1.8 trillion healthcare expenditures are “preventable” and are directly related to a lack of physical activity or sedentary lifestyles The CDC reports that indirect costs for absenteeism, disability, injuries, poor morale, and lost productivity due to sedentary lifestyles can “equal” the amount of preventable healthcare costs.

7 The Impact to Your Organization Mega insures 300 people If the industry numbers hold true 150 of your insured employees fit the definition of sedentary 50% of you health care costs are preventable and directly related their sedentary lifestyle According to the CDC, moving this group from sedentary to moderately active should save you up to $3798.00 per employee or $569,700 in direct costs per year. Add to that the benefit from indirect cost savings.

8 The Challenges Motivating 50% of the population to change their sedentary lifestyle Most of them won’t do it on their own or they would have done it by now! Investing today for results tomorrow ROI is not immediate Perception that self-managed programs work Internally run programs are generally unsuccessful Not a core competence Overburdens responsible staff

9 Serrigraph Case Study

10 The Solution… Intervention With Prevention The trend must be reversed in order to reduce health care costs. Motivate the pre 40 group to prevent sedentary lifestyles leading to future chronic care spending Work with 40 plus group to reduce chronic condition treatment According to the CDC and HHS, 50% of direct sick care expenditures can be significantly reduced or eliminated by incorporating physical activity into peoples lives. Corporations can better control their healthcare costs through programs that UNIFY health and fitness resources for their employees. AND pay for it with direct dollars budgeted for sick care and reallocated indirect savings.

11 The Solution…Unity Health and Fitness Fitness Physicians Physical Activity coordinators / coaches Dieticians Nurse practitioners Chiropractors

12 Unity Health & Fitness Programs For Corporations Using our 3 phase program, our goal is to provide a measurable ROI by executing and sustaining health and fitness programs that directly impact employers rising healthcare costs. We do this by UNIFYING health and fitness resources for their employees We strive to improve the health status and reduce the health risks of each and every participant Our staff and facilities are top notch Our web based tracking system gives people the ability to progress in or outside of our facility

13 Unity Health and Fitness 3 Phase Program Phase 1 health and fitness evaluations Phase 2 physical activity plan (PAP) using a combination of our health and fitness products –Lifestyle Coaching –FitLinx Individual Fitness Tracker –Nutrition Counseling –BP Screening –Stress Management –Aqua Therapy –Back Care –Diabetes Care –Health Specific Care PHASE 3, Incentive Programs

14 Program Cost Program contract runs for minimum 1 year period. The Phase 1 evaluation is $75 per employee Phase 2 (PAP) can be executed at home on in our facility –Home based fee is $250 per employee –Facility based fee is $750 per employee Phase 3 incentives are something we can help you implement within your company. There is a one time administrative start up fee of $2,500 With a cost @ $825 and an anticipated savings of approx $3800 in Health Care spending, the ROI is $2975 or 360%

15 Next Steps Answer any questions Prepare and sign a contract Set up employee education sessions to inform them of the benefits and mechanics of this program. Get started

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