With health care costs continuing to increase at about three times the rate of inflation (median cost increases projected to remain at 8% for 2007), employers are investing in a range of cost control strategies, according to a forthcoming study conducted by Watson Wyatt and the National Business Group on Health (press release here).
Some of the creative solutions being implemented by study participants in an effort to improve employee health and stem costs include:
- Offering a nurse line - 78%
- Offering health risk appraisals - 72%
- Implementing programs focused on obesity reduction - 42%
- Opening on-site clinics - 23%
- Opening on-site pharmacies - 14%
See related earlier post on Extreme Wellness Management to learn more about one company's admittedly aggressive tactics to improve employee health.
Here's an innovative approach of interest.
ANN ARBOR, Mich.—University of Michigan employees and their dependents who have any form of diabetes will be able to receive some of their medications for free, through an innovative new pilot program aimed at encouraging the use of medicines that can help prevent the disease's worst long-term effects.
Beginning July 1, participants will be charged no co-pay for certain drugs that control blood sugar, lower blood pressure, cut the risk of heart and kidney problems, and ease depression. All of the drugs chosen for "free co-pays" have been shown to help prevent diabetes complications that can be debilitating or fatal. Co-pays for other drugs in the same classes will be reduced by 50 percent or 25 percent.
Participants will also receive educational materials to help them understand how to improve their health and reduce their chance of diabetes complications. More than 2,000 of the 69,700 employees and dependents covered by U-M benefits currently take medication for diabetes.
The concept for the program came from U-M research that has shown the potential health value of removing any cost barrier that might keep people with some chronic illnesses from getting beneficial medications, tests and screenings. U-M research has also suggested that the approach may save individuals, employers, insurers and society money in the long run, by preventing or delaying costly complications ranging from heart attacks and strokes to blindness and amputations.
The U-M program, called MHealthy: Focus on Diabetes, is the first in the nation to be designed specifically to evaluate the impact of targeted co-pay reduction for preventive medications. Although several companies have reduced or waived co-pays as part of employee health promotion or disease management programs, and at least one has reported cost savings linked to such programs, the specific impact of reduced drug co-pays has not been measured.
"Chronic diseases like diabetes pose a real and growing threat to the health of our employees and their dependents, and to our society. We must find a better way of encouraging prevention now, so we can reduce the human and economic costs down the road," said U-M President Mary Sue Coleman. "We hope this effort will yield solid results for our own community, and provide a model for others. Although it will cost us money in the short run, we anticipate it will save lives and money in the long run."
The decision to start with diabetes, says U-M Executive Vice President for Medical Affairs Robert Kelch, M.D., stemmed from a University analysis that showed much room for improvement in the use of preventive medications, and other measures, among diabetic members of M-CARE, the U-M-owned managed care company.
The fact that diabetes affects so many people, and that proper treatment has been shown to reduce the risk of complications and early death by up to 50 percent, also played an important role.
"Because the evidence of preventive benefit from certain medications is so strong, and because the opportunity to improve is so great, diabetes is a natural place to start," said Kelch, who chairs the Michigan Healthy Community Initiative task force that has developed the program as part of a University-wide health improvement effort. He notes that similar analyses of preventive care for U-M employees with cardiovascular disease and asthma revealed additional opportunities for future quality-improvement projects, which are now being considered.
The new program will be open to all U-M employees and their dependents who have diabetes, regardless of which health insurance plan they have chosen. U-M prescription drug benefits are all offered through a single plan, allowing the program's effects to be evaluated
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AB - Frank, thanks for the information on an interesting and innovative new health management program. Sounds like the U-M experience could pave the way for other related disease management efforts.
Posted by: Frank Giancola | February 28, 2007 at 11:49 AM