The ACBG Edge is an process that allows construction companies manage the health and productivity risk of their employees. This complements American Construction Benefits Group\’s Lean Health Insurance Advantage. Together, these construction wellness processes create champion companies in 3 short years.
The Hidden Risk That Is Tearing Your Company Apart Acbg 3 30 10
1. The Hidden Risk That is Tearing Your Company Apart: Understanding Your Total Cost of Healthcare and its Impact on Your Profits Presented by: Steve Heussner March 30, 2010
33. Obesity The effects of obesity is similar to 20 years of aging. Obesity is a greater trigger for health problems and increased health spending than smoking or drinking. Individuals who are obese have 30% to 50% more chronic medical problems than those who smoke or drink heavily. National Business Group on Health Healthy Weight, Healthy Lifestyles Primary Fact Sheet
34. Obesity Overweight and obese individuals are at an increased risk for: Type 2 diabetes Heart disease Hypertension Endometrial, breast, prostate and colon cancers Respiratory problems Stroke Osteoarthritis Sleep apnea Gallbladder disease Poor female reproductive health Depression
35. Sleep Apnea Sleep disorder that causes excessive daytime sleepiness. Upper airway is blocked by relaxing soft tissue causing complete or partial obstruction. Breathing can stop from 10 seconds to 2 minutes. Episodes can occur from 5 to 100 times an hour.
36. Sleep Apnea Signs & Symptoms 92% of those diagnosed are male. Average BMI of 31 (Obese). Short, stocky neck (>17 inches). Snoring. Pauses in breathing at night. Waking up gasping or choking. Weight problems. High blood pressure.
37. Over 17 Million Undiagnosed Patients ~ 10 to 15% have been diagnosed 17 million Undiagnosed for OSA 3 million Treated for OSA 85% of OSA patients remain untreated
38. Prevalence of Sleep Apnea Logan et al. J. Hypertension 2001 Bassetti et al. Sleep 1999 Javaheri et al. Circulation 1999 Sjostrom et al. Thorax 2002 Schafer et al. Cardiology 1999
39. Schneider Study, 2004 - 2006 Tracked 339 driver associates with Sleep Apnea Evaluated safety performance and health care costs- 12 months before treatment and 12 months after treatment Findings:- Preventable crashes were reduced by 30%- Median cost of crashes reduced by 48%- Retention rate improved by 60% over fleet avg.- Health care costs reduced by over 50%- Health care savings of $539.00 per driver / month Expanded study in 2006 to 788 drivers – Similar results- Statistically analyzed by 3rd party
40. Schneider Study, 2004 - 2006 For every dollar invested into the program, their return on investment was a two to three dollar savings on medical and accident expenses A 200% increase in employee retention for those in their program as compared to the company overall Drivers treated for sleep apnea had a 73% reduction in accidents A 91% reduction in hospital admissions And an overall a 57% reduction in healthcare costs.
41. Avg. Hospitalization Expenses Avg. Physician Visit Costs $5,000 $7,500 $6,176 $3,972 $4,000 $6,000 $3,000 $4,500 $3,734 $1,969 $2,000 $3,000 $1,000 $1,500 $0 0 NON-OSA GROUP $1,969 OSA GROUP $6,176 NON-OSA GROUP $3,734 OSA GROUP $3,972 Individual Impact of OSA on Utilization Costs ¹ Kryger, et al. OSA Patients Use More Health Care Resources Ten Years Prior to Diagnosis. Sleep Research Online 1998:1(1):71-74
42. The Link Between OSA and Diabetes Diabetes affects nearly 21 million Americans (7% of population) Diabetes is the 6th leading cause of death in US 50% of people with type 2 diabetes also suffer from sleep apnea 1Centers for Disease Control and Prevention, National Diabetes Fact Sheet, 2005 2Babu, Ambika, R., et al. Type 2 Diabetes, Glycemic Control, and Continuous Positive Airway Pressure in Obstructive Sleep Apnea. Arch Intern Med 2005:165:447-452
43. Diabetes 23.6 million people or 7.8% of the population of the United States has diabetes. Cases of diabetes doubled from 1990 to 2005. Cases are expected to double again by 2030. The incidence of Type II Diabetes in adolescence has increased 10 times over the last decade and now constitutes just over 1/3 of new pediatric diabetes cases.
44. Diabetes is the 7th leading cause of death nationally, over 233,000 deaths per year. According to the National Center for Health Statistics, diabetes is the only major disease besides Alzheimer's with a death rate that continues to rise. Diabetes deaths have climbed 22% since 1990
45. Cost of Diabetes in the U.S. Total cost is $174 billion a year. Direct medical cost are $116 billion a year. Indirect costs are $58 billion a year (Disability, Work Loss, Premature Death). Annual health cost of a person with Type II Diabetes is 3.2 times the average American without diabetes.
46. Complications of Diabetes Of those with diabetes: 3 out of 5 people have 1 other serious health problem. 1 in 3 has two other serious health problems. 1 out of 10 has three other serious health problems. 1 out of 13 has four or more other serious health problems. Diabetes is the leading cause of adult blindness, lower limb amputation, kidney disease and nerve damage. Diabetes Sources: National Diabetes Fact Sheet of the National Center for Chronic Disease Prevention and Health Promotion; NCHS; CDC; ADA; AACE
47. “Behaviors drive 80% of disease, premature deaths, healthcare and productivity costs.” Michael D. Parkinson, MD, MPH, FACPM Former EVP, Chief Health and Medical Officer Lumenos/Wellpoint UM HMRC Wellness in the Workplace Annual Conference March, 2009
48. 70% of medical & Rx claims are from poor lifestyle choices 48 New England Journal of Medicine
49.
50. #1 Source of Calories in the U.S. = Soft Drinks Coca Cola (12 oz. can)
51. #1 Vegetable in the U.S. = French Fries McDonald’s Large Fries
54. Is Cancer Preventable by Behavior? “…one-third of the more than 500,000 cancer deaths that occur in the U.S. each year is attributed to diet and physical activity habits, including overweight and obesity, while another third is caused by exposure to tobacco products.” “Although genetic inheritance influences the risk of cancer, most of the variation in cancer risk across populations and among individuals is due to factors that are not inherited.” American Cancer Society Cancer Journal for Clinicians January 28, 2010
55. Behavioral Causes of Death Mokdad, A.H., Marks, J.S., et al. Actual causes of death in the United States. JAMA. 2004; 291:1238-1245.
75. Excess Self-Reported Major Diseases Associated with Excess Risks Percent with Disease High Med Risk Low Risk Age Range Musich, McDonald, Hirschland, Edington. Disease Management & Health Outcomes 10(4):251-258, 2002.
77. Costs Associated with Risks Medical Paid Amount x Age x Risk AnnualMedicalCosts High Med Risk Non-Participant Low AgeRange Edington. AJHP. 15(5):341-349, 2001
78. Spill Over Medical Costs Work Comp LTD & STD Absenteeism Presenteeism Productivity
79. Relative Value of Health to the Organization: Total Value of Health Medical & Pharmacy Worker’s Compensation Presenteeism Absenteeism STD LTD Time-Away-from-Work Edington, Burton. A Practical Approach to Occupational and Environmental Medicine (McCunney). 140-152. 2003
80. Health and Presenteeism The Institute for Health and Productivity Management coined the term “presenteeism”. The time when employees continue to work despite the presence of illness that reduces their productivity. Good health optimizes employee functionality; in other words, individuals who feel better also work better.
81. Total Disability Cost by Risk Status Wright, Beard, Edington. JOEM. 44(12):1126-1134, 2002
82. Estimated Loss of Productivity by Risk Status Burton, Chen, Conti, Schultz, Pransky, Edington. JOEM. 47(8):769-777. 2005 *p<.05, **p<.01
83. Excess Medical Costs due to Excess Risks $5,520 $3,460 $3,039 $2,199 Edington, AJHP. 15(5):341-349, 2001
84. Excess Disability Costs due to Excess Risks $1,248 $783 $666 $491 36% of Absence, STD, Worker’s Comp Wright, Beard, Edington. JOEM. 44(12):1126-1134, 2002
86. Association of Risk Levels with Corporate Cost Measures Wright, Beard, Edington. JOEM. 44(12):1126-1134, 2002
87. 2007 Duke University Medical Center Study Findings Study includes 11,728 employees from 1997 to 2004 Obese employees: Filed twice as many WC claims as non-obese. Had 7 times higher medical costs from those claims. Lost 13 times more days from work injury or work illness.
88. 1200% 1194% 1000% 755% 729% 800% 600% 430% 347% 400% 236% 191% 155% 118% 200% 100% 100% 100% 0% 18.5 - 24.9 BMI 30 - 34.9 BMI 35 - 39.99 BMI ?40 BMI (Recommended) (Obesity class I) (Obesity class II) (Obesity class III) Medical Claim Cost Workers Comp Cost Productivity/Lost Time Business Impact of Today’s Poor Health 72 Source: The McKinsey Quarterly, Dec 2008 Arch. Of Internal Medicine, April 2007
89. Other Areas Impacted by Poor Health Insurance premiums Retained losses Stop loss deductible payments Self-insured claims Internal administrative expenses Risk, safety & claims staffing HR workload
90. Direct and Indirect Burden of Illness Study Institute of Health and Productivity, Cornell University Using The Medstat Group’s database The study included 374,799 employees from 1997 to 1999 Reported on the financial consequences of the top 10 most costly and prevalent conditions
91. Direct and indirect burden of illness, by condition and service area (using $23.15/hour wage estimate).JOEM, Volume 46, Number 4, April 2004
