27% of All Health Costs Preventable in 2016

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What is this about?

The document highlighted in this edition of the Connections newsletter is a newly published study from the British Journal Lancet Public Health. The article reports on an extensive modifiable health risk analysis of U.S.health care costs using a cross-comparison technique on two very extensive claims databases.  The objective of this study was to quantify health care spending attributable to modifiable risk factors in the USA for 2016. 

In 2016, US health care spending attributable to modifiable risk factors was $730.4 billion corresponding to 27·0% of total health-care spending. This “attributable” spending was largely due to five risk factors: high body-mass index, high systolic blood pressure, high fasting plasma glucose, dietary risks, and tobacco smoke. Spending attributable to risk factor varied by age and sex, with the fraction of attributable spending largest for those aged 65 years and older. The significance of this is that the cost of governmental health programs like Medicare and Medicaid can be significantly reduced by reducing key health risks among program beneficiaries.  Attributable health care spending was also identified for the top 16 health risk factors.

Why is this important?

The issue in this edition of the Connections newsletter is important for 3 major reasons. First, reducing the cost burden associated with major modifiable health risks is one of the most important goals of virtually all employee wellness programs.  Second, this study found that fully 27% of all health care costs are considered potentially preventable, which is a huge economic incentive for prevention and wellness among American employers and governmental health programs. Third, this study provides very valid estimates of the potentially preventable conditions, diseases and costs that can be used by Wellness program managers to make a stronger economic case for funding employee wellness programs.

What can you do with this document?

  • First, read the document to get a sense of the methodology and results of the study.
  • Next, determine where in your current communications efforts this information can be used.
  • Then, determine which of your program interventions should include this information.
  • Finally, decide how else to use the information to plan and justify your annual program budget.

In summary, this document describes a study that found that fully 27% of U.S. health care costs were preventable in 2016.  Employee wellness programs play a major role in reducing these health risks and costs for employers and for governmental health programs like Medicaid and Medicare.

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