Synergies at Work

Published

VBID, Synergies at Work

Realizing the Full Value of Health Investments

US Health Care Costs Are on the Rise Due to:

  • Expanded Coverage
  • Rising Prices
  • Increased Utilization

Result: Employers Shift Costs to Consumers

Increased consumer cost-sharing ultimately causes

  • Reduced use of essential services
  • Decreased employee productivity
  • Diminished business performance

Employers need to shift their focus from "How much are we spending?" to "What is the full value of our health investment?"

How Do We Measure the Full Value of Health?

Direct Medical Costs

  • Prescription Drugs
  • Procedures
  • Hospital Stays

Productivity Costs

  • Absenteeism I
  • Disability
  • Job Performance

Traditional assessments of health care spending underestimate the economic benefits of a healthy workforce.

Traditional Model

  • 27% Direct Medical Costs.
  • Full Value Model 41% Lost Productivity: Job Performance, 27% Direct Medical Costs, 22% Wage Replacements, 10% Lost Productivity: Absence. Source: Integrated Benefits Institute

To accurately measure the return on investment of health care spending, employers must consider a full value model approach.

How Do We Implement the Full Value Model?

Direct Medical Costs and Productivity Costs, with Expanded Model in between. Expanded Model has three elements: Think Broadly, Focus on Value, and Gather Empirical Evidence.

Implementing a Full Value Approach: Benefits for Employers

  • Create a Culture of Health
  • Promote Smarter Health Care Spending
  • Develop a Healthier Workforce
  • Enhance Financial Performance

M CENTER FOR VALUE-BASED INSURANCE DESIGN

Phone: 734.647.9688

Email: vbidcenter@umich.edu

Web: vbidcenter.org

Twitter: @um_vbid

Facebook: www.facebook.com/umvbid

Linkedln: Center for Value-BasedInsurance Design

IBI
INTEGRATEDBENEFITSINSTITUTE

595 Market Street, Suite 810
San Francisco, CA 94105

Phone: 415-222-7280

Fax: 415-222-7281

Email: info@ibiweb.org

Infographic
funded by:
National
Pharmaceutical
Council

1717 Pennsylvania Ave NW
Suite 800,

Washington, DC 20006

Phone: 202-827-2100

Fax: 202-827-0314

Email: info@npcnow.org

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<a href='http://www.npcnow.org/issue/VBID-synergies-work'><img src='http://www.npcnow.org/sites/default/files/VBID-SynergiesAtWork.png' alt='VBID Synergies at Work' width='600px' border='0' /></a> <br><small>Source: <a href="http://www.npcnow.org">National Pharmaceutical Council</a></small></p>

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Synergies at Work PDF