Resource:

Proof Positive: Lower Medical Costs with Increased Productivity

White Paper

Challenge: Cultural Transformation  Financial Sustainability  

Content provided by AHA Endorsement partner: Interactive Health

Read the results of a multi-year, independent review conducted by Zoe Consulting, which demonstrates how Interactive Health Outcomes-Based Wellness Programs can lower medical costs and increases productivity.


Abstract
Interactive Health is the market leader and innovator in outcomes-based employee health and wellness. They take a scientific approach to wellness, leveraging clinical data from health evaluations to measure, motivate and reward each individual on the pathway to better health. Their outcomes-based program rewards individual success based on achieving personalized clinical goals. When employees improve their health, employers gain competitive advantage through reduced healthcare costs and improved worker productivity. Currently, Interactive Health provides a health and wellness program to over 1,400 employers nationally.

To measure the effectiveness of the Interactive Health outcomes-based program, a third party consulting company, C. Everett Koop winner Zoe Consulting, Inc., analyzed medical claim data over a multi-year period. The study was comprised of two parts. In part one, Zoe Consulting compared medical costs of employers using the Interactive Health program versus employers that did not use Interactive Health. In part two, Zoe Consulting measured the financial impact of the Interactive Health program on individual clients’ medical costs and productivity.

Findings
Zoe Consulting concluded that the Interactive Health program had a positive impact on organizational financial performance. The study demonstrated:

  • Interactive Health clients had a 20% lower medical spend compared to employers not using the Interactive Health program
  • The Interactive Health program reduced medical spend vs. forecast by up to $1,332 per member per year (PMPY)
  • Interactive Health members returned to work sooner than claimants who did not participate in the Interactive Health program
    • 11 days sooner on average from workers’ compensation
    • 16.8 days sooner on average from short term disability
  • The Interactive Health program on average saved $2,554 per workers’ compensation claimant and $451 per short term disability claimant