Start Date

3-3-2017 8:00 AM

Document Type

Poster

Description

Introduction: The WoW program is designed to improve employee health outcomes through workplace support of healthy behaviors. We illustrate a preliminary model to estimate the program effect on employee health care expenditures.

Methods: Program-related reductions in employee health care expenditures were estimated based on likely improvements in healthy eating, leisure-time exercise and stress reduction. The models considered the number of employers targeting these specific areas, the number of employees in each organization, prevalence of the specific risk factors, ranges of success rate in risk mitigation and program-associated decrease in health care expenditures from similar worksite studies in literature.

Results: Assuming success rates of 5% and 30% respectively for each of the top three targeted areas, the estimated total reduction ranges from $0.76 million to $4.07 million. For every $1 invested, the program could result in $0.38 to $2.04 reduction in healthcare expenditures by assuming an initial investment of $2 million in the intervention program.

Discussion and Conclusions: This preliminary analysis shows the likely ranges of return on investment (ROI) from the WoW program in relation to employee health care cost. The models should be further developed to provide more accurate estimates by including potential cost reductions due to other target areas, synergistic effects of successes in multiple areas, increased productivity and reduced absenteeism. Simulation models should be created to provide estimates along with precision based on employee-level data. However, methodological limitations remain to be addressed for use of intervention effects from randomized trials in ROI estimation in non-randomized practical settings.

Keywords

employee health, health care, stress reduction, worksite health, health care cost

Creative Commons License

Creative Commons Attribution-Noncommercial-Share Alike 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 License.

 
Mar 3rd, 8:00 AM

A Preliminary Method for Estimating Program-related Reduction in Employee Health Care Expenditures for the Massachusetts Working on Wellness (WoW) Program

Introduction: The WoW program is designed to improve employee health outcomes through workplace support of healthy behaviors. We illustrate a preliminary model to estimate the program effect on employee health care expenditures.

Methods: Program-related reductions in employee health care expenditures were estimated based on likely improvements in healthy eating, leisure-time exercise and stress reduction. The models considered the number of employers targeting these specific areas, the number of employees in each organization, prevalence of the specific risk factors, ranges of success rate in risk mitigation and program-associated decrease in health care expenditures from similar worksite studies in literature.

Results: Assuming success rates of 5% and 30% respectively for each of the top three targeted areas, the estimated total reduction ranges from $0.76 million to $4.07 million. For every $1 invested, the program could result in $0.38 to $2.04 reduction in healthcare expenditures by assuming an initial investment of $2 million in the intervention program.

Discussion and Conclusions: This preliminary analysis shows the likely ranges of return on investment (ROI) from the WoW program in relation to employee health care cost. The models should be further developed to provide more accurate estimates by including potential cost reductions due to other target areas, synergistic effects of successes in multiple areas, increased productivity and reduced absenteeism. Simulation models should be created to provide estimates along with precision based on employee-level data. However, methodological limitations remain to be addressed for use of intervention effects from randomized trials in ROI estimation in non-randomized practical settings.

 

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