Shift to Consumerism: Change Story for Managers

Rising healthcare costs are a burden to both companies and employees Healthcare sector costs are rising at more than twice the rate of the inflation These increases frustrate employees and compromise a company’s competitive position in the world market Employees are bearing an increasing share of these rising costs The root causes of these cost increases are poorly understood by most Americans 2

Cost escalation will continue under healthcare reform Legislation focuses on increasing access, and does not address cost control Increased access is achieved through a coverage mandate and broad-based subsidies for low income wage earners These increased costs will be financed largely by new taxes and Medicare cuts The result will be higher private sector healthcare costs – through increased cost-shifting and taxes 3

Changing behavior is the key to bending the cost curve 4 Genetics Behavior Environment Access to Care 20% 50% 20% 10% * Source: IFTF, Centers for Disease Control and Prevention Employee Behavior Determines 50% of Health Status and Associated Costs… More financial stake in their health care choices (plan design, personal health accounts, lifestyle management) More resources and tools to manage their health and health care costs (free preventive services, quality assessment tools, treatment cost estimators) +

The solution is a holistic program, focused on health and fitness Encourage employees to think of all healthcare spending as their money Motivate employees to help them make healthier choices and actions Drive wellness and disease program utilization Support employees with education and environmental reinforcement 5