Wellness Programs Reduce Medical Costs

August 30, 2012 at 05:32 AM

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Employers using wellness programs are seeing a 6.1% average annual medical cost trend reduction and a 13.5% average annual medical cost trend reduction among members with core conditions, according to a new study.

The study was conducted by Zoe Consulting Inc. on behalf of Interactive Health Solutions Inc., a provider of performance-based health management solutions for employers.

Asthma, coronary heart disease, chronic obstructive lung disease, diabetes and hypertension are examples of core conditions, and many of the health effects from core conditions can be managed through early detection as well as compliance with prescribed therapies.

The study also finds a 7.7% reduction in per member per month during the survey's final year, and 85% of members maintained or lessen their health risk levels.

Additionally, respondents spent fewer days out of the workplace because of workers' compensation and short-term disability claims, the study reveals. In fact, respondents returned to their jobs up to nine days sooner while under workers' compensation and 17 days sooner for those on short-term disability.

"Employers are continuously searching for responsible ways to reduce health care spending, which has grown to over 25% of total labor expense," says Joseph O'Brien, president and CEO of Interactive Health Solutions. "We have a long history of pioneering game-changing wellness programs. The analysis conducted by Zoe Consulting confirms our wellness programs deliver meaningful results for individuals and their employers."

This independent analysis is based on multiple years of medical claim data from two comparable population groups.

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