Health Care Costs for Each Person

1
Health Care Costs for Each Person
6,423
Centers for Medicare and Medicaid Services
2
U.S. Health Care as a Percentage of the GDP
Today 15 of GDP
US Military uses 3.2
3
In 2001, US Spends More Than the Rest
2001, General Accounting Office, 2004
4
Infant Mortality
2001, General Accounting Office, 2004
5
Life Expectancy in the World
Japan
U.S.
WHO, 2004
6

• Pharmaceutical companies
• Canada
• Malpractice and law suits
• High tech equipment
• Medical profession salaries
• Administration
• Waste/fraud
• Poor lifestyles

7
Portion of Health Care Caused by Preventable
Chronic Diseases
8
A Few Facts About Health Care

• The cost health care will continue to rise
• All health care costs are paid by individuals
• Lower health care cost for companies and
  individuals is a function of shifting who pays a
  greater portion
• Unhealthy behaviors lead to health risks
• Health risks lead to chronic diseases
• Chronic diseases lead to health care costs

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Unhealthy behaviors
Health risks
Chronic disease
Health care costs
10
Obesity Trends Among U.S. Adults1985
11
Obesity Trends Among U.S. Adults2000
12
Obesity Trends Among U.S. Adults2005
No Data lt10 1014
1519 2024 2529
30
13
Percent of adults who are overweight or obese
67
2/3 of adults are overweight or obese
14
Excess Body Weight and Reduction of Lifespan
-3.1
-3.3
-5.8
-7.1
Ann Intern Med. 200313824-32
15
Diabetes and Reduction in Lifespan
-14.3 yrs
-11.6 yrs
JAMA 20032901884-1890
16
Lifetime Risk of Diabetes for Children Born in
2000
49
Venkat Narayan, JAMA 20032901884
17
How People Died in 2003
Cancer 24
Accidents Suicide Infections Kidney failure Lung
failure Others 40
Cardiovascular Disease 36
18
How People Died in 2003
CVD
Cancer
Other
Up to 70 of all causes of death are lifestyle
related and preventable
19
Percent of Chronic Diseases That Are Caused by
Poor Lifestyle
91
82
71
70
Sources Stampfer, 2000 Platz, 2000 Hu, 2001
20
National prevalence of health risks
80
78
CDC, BRFSS, 2002
21
How did we get this way?
22
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5-a-day 1 million
Food Marketing 25 Billion
24
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Texas Double Whopper
27
Employee Health
28
Typical Employee Distribution
30
50
20
29
Typical Employee Cost Distribution
15 of Employees 85 of Costs
85 of Employees 15 of Costs
30
Typical Employee Cost Distribution
59 of next years cost group
31
Health and Productivity Management (HPM)
32
1,500-3,500 in Excess Claims for Each
Additional Health Risk
Source Dee Edington, Health Management Research
Center
33
Average 2003 Medical Care Costs
N1,706
Source StayWell Health Management
34
Average 1997-1999 Medical Care Costs
N43,687
Source StayWell Health Management
35
Fairview Health Services
-13
-2
15
N3,577
Source StayWell Health Management
36
Return on Investment (ROI)
32 studies
14 studies
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What caused these changes?
41
Unhealthy behaviors
Health risks
Chronic disease
Health care costs
42
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Why should brokers and consultants care?
45
To 1,200 CEOs What cost is your companys
greatest concern?
Business Roundtable Survey, 2006
46
What is the cost of doing nothing?
Employer Health Benefits 2005 Annual Survey
47
Expenditures directed at employee health

• medical benefits
• short and long term disability
• workers compensation
• disease management
• demand management
• absence management
• human resources

• employee relations
• staff recruitment and training
• employee assistance programs
• work/life
• organizational development
• health promotion

48
Dont forget the expand the definition of
productivity

• Not just measuring widgets
• Service oriented work
• Presenteeism and absenteeism
• Physically present, but mentally absent

49
Direct Company Expenditures per Employee/year
13,000
MEDSTAT Group
50
Leading by Example
51

• http//www.prevent.org/images/stories/Files/docs/L
  eading_by_Example.pdf

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Why Should I Care?
Morbidity
Lifespan in years
76
0
critical illness
Ann Intern Med, 2003139455-459
54
Morbidity
Lifespan in years
0
?
76
86
critical illness
55
End of Life Benefits
Morbidity
Lifespan in years
10-20 Years
Morbidity
Lifespan in years
56
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