1. Is There Hope for More Affordable Health Care? Yes, but…..
Ed Wolking , Jr.
American Chamber of Commerce Executives
August 19, 2006

2. Health Care Has to be Managed
What do you manage?
Cost
Quality
Access
How do you manage it?
Supply Side
Demand Side

3. Supply Side
Greater Detroit Area Health Council’s Save Lives Save Dollars movement
Introducing evidence-based medicine and performance-based reimbursement throughout the region
Goal is $500 million savings in a 3-yr period, or a reduction in expenditures trend of 1% - 3% annually

4. Demand Side Healthy Blue Living
Developed by Detroit Regional Chamber and Blue Care Network
Introducing Wellness to the small employer workplace
You can manage illness, or…..
You can manage Wellness, to prevent illness

5. Inspiration and Challenge
Large employers demonstrated impact of wellness
Reductions in costs over time
Increases in presenteeism & productivity
Detroit Regional Business Group on Health:
- Design a plan that dramatically lowers health insurance premiums (greater than 10%)
Do not underwrite or select risk based on health STATUS
Do not cut benefits to lower premiums
Learn from the experience of Dee Edington, University of Michigan, and General Motors

6. The Sword in the Stone
How to create and align incentives and reward behavior in pooled markets?

7. How Healthy Blue Living Will Work
Benefits are the same for all employees
Employees who engage in healthy behaviors enjoy relatively lower copays and deductibles
Employees with unhealthy behaviors contribute relatively more out-of-pocket for care
Employers pay a set rate regardless of an employee’s behavior
Employers pay lower premiums on average

8. Making an Impact
Rates will be significantly lower than the typical HMO rate
Employers can save about 10% on average