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Components of Health Care Administration
83% of total health care costs relate directly to medical and prescription drug claims.
Only 17% applies to the cost of administering the plan. |
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Did You Know?
- 10% of workers with chronic conditions account for 70% of total health care costs
- 50%-60% of hospital admissions are due to chronic conditions
- 75%-90% of doctor visits are stress related
- 33% of expenses are for preventable conditions
Time to be Proactive....
Burkwald & Associates can show you how
to implement, monitor and save!!!!
Disease Management Programs
- Average savings on Disease Management is $900 per participant
- Targets: Asthma, Diabetes, Heart Conditions
- Proactive outbound calls to candidates
- Voluntary Participation
- Intrinsic to some Health Plans
- Information kept confidential
- Immediate reduction in claims costs
- 20% of employers planned on implementing a program in 2002
Wellness Programs
- ROI: Average $2.30 - $5.90 per $1.00 invested
- Not just for the "Big" companies
- Improve employee morale
- Information kept confidential
- On site health screenings
- Follow up and counseling services
- Health improvement programs
- Organizing worksite-wide activities
- Incentives for participation
It's a Simple Formula
Total Cost= Price X Utilization
If unnecessary utilization is curbed your total costs are automatically and significantly impacted.
Impact of Health Promotion Programs
on Medical Care Costs
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Studies |
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Total
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Percentage
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| Reduced medical care costs |
21 |
88% |
| No change |
3 |
12% |
| Increased medical care costs |
0 |
0% |
| Total |
24 |
100% |
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| Cost/benefit analysis: 8 studies |
| Range of savings: $2.30-5.90 per $1.00 invested |
| Average savings: $3.35 per $1.00 invested |
Back to Wellness Main | Back to Total Benefits Solution
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