How to Calculate ROI Tool L2-10

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This tool includes two detailed examples of how to calculate the Return-on-Investment (ROI) of an employee wellness program using primarily health care cost changes. Example #1 is for situations where you don’t have access to health care claims data while the second example (Example #2) is for situations where you do have access to health plan claims data. Example #1 uses the “Economic Conversion of Risk Prevalence” Method (Method #2) from the accompanying article in your Course Workbook. This method uses the reduction of selected health risks and their actuarial value resulting in the likelihood of reduced claims costs due to the reduction of specific health risk factors. Example #2 uses annual health care claims cost at baseline and then during the first year of the program for participants in the wellness program.

Published 2016.

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