HHS Issues Report on Impact of Poor Health on Business

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Misty L. Trepke

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HHS Issues Report on the Impact of Poor Health on Businesses

 

http://healthy.net/scr/article.asp?PageFidylType=Article & id=2341

 

Secretary Thompson To Meet With Business Executives To Share

Prevention Strategies Health and Human Services Secretary Tommy G.

Thompson released a new report highlighting the significant economic

toll that preventable diseases take on businesses, workers and the

nation. The report highlights the importance for employers to make

health promotion part of their business strategy.

 

The report comes as Secretary Thompson prepares to host a prevention

roundtable discussion with more than a dozen executives from major

U.S. corporations. Today's meeting will allow top government and

business leaders to discuss the urgency of rising health care costs,

an aging population and prevention priorities as well as to share

strategies for the public and private sectors to better address these

issues.

 

" The choices we make about diet, activity and tobacco affect not only

our own lives, but also affect the economic health of our families,

our businesses and even our nation as a whole, " Secretary Thompson

said. " More businesses need to recognize that poor health means

lower productivity and higher health insurance costs. Smart business

leaders increasingly are finding that it is the right decision to

promote health education, physical activity and preventive benefits

in the workplace. "

 

The new HHS report summarizes key research findings about the

prevalence and cost of chronic diseases where prevention and health

management can make a difference -- including cardiovascular disease,

diabetes, and asthma. Individual choices that lead to overweight and

obesity, lack of physical activity and smoking greatly increase the

risk of these diseases.

 

The report highlights recent research showing the dramatic impact of

chronic, preventable illnesses have on business' bottom line:

 

Obesity-related health problems cost U.S. businesses an estimated $13

billion in 1994, including about $8 billion in health insurance

costs, $2.4 billion for sick leave, $1.8 billion for life insurance

and nearly $1 billion for disability insurance.

Average health care expenditures for people with diabetes run about

$13,243 per person, compared with $2,650 per person for people

without diabetes. Even after the differences in age, sex, race and

ethnicity are taken into account, people with diabetes had medical

expenditures that were 2.4 times higher than comparable people

without diabetes.

 

One economic analysis found that a health plan's annual costs for

covering treatments to help people quit smoking ranged from 89 cents

to $4.92 per smoker, while the annual costs of treating

smoking-related illness ranged from $6 to $33 per smoker.

The report also notes that the majority of businesses with at least

50 employees offer some kind of health improvement program. It

provides examples of health promotion and disease prevention

activities that businesses are using successfully to reduce the

impact of these chronic illnesses.

 

" Employers are becoming more aware that overweight and obesity, lack

of physical activity, and tobacco use are impacting the health and

productivity of their employees and ultimately, the businesses'

bottom line, " the report states. " As a result, innovative employers

are providing their employees with a variety of work-site-based

health promotion and disease prevention programs. These programs have

been shown to improve employee health, increase productivity and

yield a significant return on investment for the employer. "

 

The report cites specific examples of successful efforts at some

major corporations. For instance:

 

Caterpillar offers a Healthy Balance Program aimed at motivating

workers to make positive changes to reduce their health risks and

improve their long-term health. The company projects long-term

savings for this effort totaling $700 million by 2015.

Motorola offers wellness and work/life programs that reach 45,000

employees, family members and retirees across the country. The

efforts include disease management programs, fidyl flu immunizations,

cancer screenings and other health screenings, smoking-cessation

programs and a 24-hour nurse telephone line. The company reports

saving almost $4 for every $1 it invests in its wellness benefits.

Northeast Utilities offers a WellAware program to employees and their

families to reduce lifestyle-related health risks. The program

includes a health-risk assessment and targeted follow-up efforts,

such as smoking-cessation counseling and rebates for purchasing

smoking-cessation aids. During its first 24 months, the program

reduced claims related to lifestyle and behavior choices by $1.4

million.

 

Secretary Thompson also has launched a new initiative within the

department to encourage HHS employees to become more physically

active in order to promote better health. To successfully complete

the Secretary's Challenge, an employee must engage in moderate

physical activity for at least 30 minutes a day, five days a week,

during a six-week period. The initiative's goal is to make physical

activity an ongoing habitfor employees and a regular part of HHS'

workplace culture. Kickoff activities for the Secretary's Challenge

took place on Monday in the Great Hall at the Hubert H. Humphrey

Building in Washington.

 

Since taking office, Secretary Thompson has made disease prevention

and health promotion one of his top priorities and has worked

aggressively to reach more Americans with the information and

services that can prevent disease. Altogether, HHS spending on

disease prevention totals $17.5 billion this year, and the

President's budget for fiscal year 2004 calls for an increase to

$17.8 billion next year -- about a quarter of the department's

discretionary budget.