Traditional vs. New View of Health (See Predictive Modeling for Health Care: Finding the High-Cost Employee) Traditional vs. New View of Health Traditional Model Industry oriented towards management of diseases. Premise that better disease management will result in lowered cost. Typically identifying only 1-3% of the employee population, meaning only 10-5% of the near-term cost brought under proactive-care management. Perceived-Health Model Oriented towards all factors that contribute to a person’s sense of illness. Premise that unless non-disease-based factors are identified and addressed, the person won’t feel better and reduce care use. Identifies 10 percent of employees that will account for 70-80% of their costs, dramatically increasing the ROI potential. (scroll down)

Perceived-Health Model Traditional Model By looking at more than disease factors alone, employers can manage fewer employees, but capture and manage more of the cost. 55% of Total Medical Costs 43% of Total Medical Costs Perceived-Health Model Traditional Model Employees Predicted to have High Levels of Near-term Care Use (disease and non-disease factors) 30% of $$ Employees w/ One or More of Top 4 Diseases 43% of Health Care $$ 25% of $$ 11% of pop. 4% pop 1% pop Source: Disease Management Association of America