The business benefits of health promotion programs

Health risk appraisal essential for medical cost savings

The savings gained from participation in health promotion programs for Medicare beneficiaries. Ozminkowski RJ, Goetzel RZ, Wang F, Gibson TB, Shechter D, Musich S, et al. J Occup Environ Med. 2006. 48: 1125-1132.

Aim

To estimate the savings in medical costs incurred by Medicare beneficiaries through use of a health promotion strategy.

Looked at

59,324 retired employees (and their dependents) of a large US-based company who between 1996 and 2002 participated in one or more health promotion programs.

How?

Medical costs year on year and health risk status of this population were compared with individuals who did not participate in any health promotion programs.

Health promotion programs include:

  • Health risk appraisal (HRA)
  • On-site biometric screenings
  • Telephone-based lifestyle management consulting
  • Educational classes offered at the worksite

Results

  • Healthcare expenditure was lower for those who took the HRA than for those who didn't participate in any health program, and lower again for those who also took part in an intervention.

    Health promotion strategy

    Average annual savings in

    medical costs (US$)*

    HRA only

    408

    HRA and one other program component

    442

    HRA and two other program components

    569

    *Compared with nonparticipating individuals.

What does this mean?

An HRA is a key aspect of a health promotion program and when incorporated can have a considerable positive impact on financial savings in medical costs.