Excess health risks contribute to employer costs
Financial costs due to excess health risks among active employees of a utility company. Yen L, Schultz A, Schnueringer E, Edington DW. J Occup Environ Med. 2006. 48: 896-905.
Aim
To determine the excess medical costs associated with employees having multiple health risk factors.
Looked at
4,226 employees, of whom 49% had completed a health risk appraisal (HRA).
How?
Calculated excess costs as the difference in average annual costs between HRA participants with low-risk status, and those with medium or high-risk status.
Risk criteria
i) Low risk – 0-2 health risk factors
ii) Medium risk – 3-4 health risk factors
iii) High risk – 5 ≥ health risk factors
Results
- 56% of total excess costs (US$1.8 million of $3.2 million) were due to medium and high-risk individuals.
- 44% ($1.4 million) were due to high-risk HRA participants.
What does this mean?
Individuals with excess health risks significantly contribute to excess costs due to absenteeism, medical, and pharmacy claims.