• Home
•  | 
• Subscribe to the Journal VBHM
•  | 
• Tell a Colleague
•  | 
• Site Map

The Value of Prevention

Focus on Preventive Care

The most effective way to lower healthcare costs is to help prevent chronic health problems before they start. Improve employee health by providing access to preventive care programs such as:

• Weight management and nutrition classes
• Vaccination programs
• Screenings
• Smoking cessation programs

After healthcare expenditures exceeded $1 billion, Safeway executives realized that they needed to change their healthcare program in order to save money and have healthier employees. Read the Safeway case study to learn how offering incentives helped Safeway change employee behavior and save 31% on healthcare costs.

Keep Low-Risk Employees Healthy

When assessing risk across an entire covered population, approximately 60% of the total population will be classified as low risk, 25% will be medium risk, and the remaining 15% will be high risk.¹ When you make prevention a priority in your organization, your low-risk employees provide the following benefits:

• Lower medical and pharmacy costs¹
• Less absenteeism and related costs¹
• Fewer disability claims and related costs^1,2
• Fewer workers’ compensation claims^1,3
• Decreased presenteeism rates and related costs^1-2,4

One study has shown that the organization saves approximately $350 per employee per year by keeping low-risk employees healthy and at low risk.^1,5

Build Value Using These Tools

Use the following tools to learn more about the value of prevention and how you can build a cost-effective business strategy.

• Learn how primary prevention makes sense. Download the podcast.
• Assess your organization’s prevention strategies. Download the BeneFIT Design Assessment.
• See how your prevention strategies match up to other organizations. Download the benchmarking tool.
• Learn the value of primary prevention and health maintenance. Download the WorkSET® module.

References:

1. University of Michigan Health Management Research Center. Cost benefit analysis and report 1979-2007. Ann Arbor, MI: University of Michigan; 2008: i-xvi.
2. Burton WN, Conti DJ, Chen C, et al. The role of health risk factors and disease on worker productivity. J Occup Environ Med. 1999;41(10):863-877.
3. Musich S, Napier D, Edington DW. Association of health risks with workers’ compensation costs. J Occup Environ Med. 2001;43(6):534-541.
4. Pelletier B, Boles M, Lynch W. Change in health risks and work productivity over time. J Occup Environ Med. 2004;46(7):746-754.
5. Edington D. Emerging research: a view from one research center. Am J Health Promot. 2001;15(5):341-349.