Summer 2006 Newsletter

• Diabetes affects 7 percent of the United States population, with 14.6 million people diagnosed with the disease, and another 6.2 million currently undiagnosed.

• Approximately 70 million Americans, including over 9 million children, are obese and at increased risk of many other diseases and conditions. Current data suggests that this situation is growing worse.

• Almost one-fourth of the population has some form of cardiovascular disease. The cost of caring for cardiovascular diseases, including almost 6 million related hospitalizations annually, is tremendous – amounting to an estimated $351 billion dollars in health care expenses and lost productivity in 2003 alone.

• A new condition known as “presenteeism” - lost productivity that occurs when employees come to work but perform below par due to illness – may account for up to 60% of employer health costs, and an estimated cost to organizations of $180 billion annually according to a study by AdvancePCS.

• According to a study conducted by the U.S. Bureau of Labor and Statistics, companies lose approximately $645 annually per employee and 2.8 million workdays each year because of “absenteeism” - unscheduled time off due to illness or personal reasons.

These conditions have a direct impact on employers, compounding rising health care expenses. Small employers are especially vulnerable to increases in these expenses. The average total premium (employer and employee share) per enrolled employee is higher among firms with fewer than 50 employees for single and family coverage (Center for Financing, Access, and Cost Trends, AHRQ, Insurance Component of the Medical Expenditure Panel Survey, 2003). Additionally, smaller firms are experiencing larger percentage changes in premiums.

Fortunately for employers, leading health insurers are taking note and working with employers to offer effective strategies aimed at alleviating the crisis and maintaining consistently high productivity levels in the workplace.

Small employers should consider speaking with a local insurer or broker to discuss options that best suit their company’s needs. They should look for a health insurance company which:

• Offers a range of consumer directed health care products including high-deductible Health Savings Account (HSA) compatible health plans, and Health Reimbursement Arrangement (HRA) accounts;
• Encourages health and wellness among employees by providing incentive programs for healthy behaviors;
• Provides tools to help members make health care decisions, manage their records, and track health care expenditures; and
• Has an excellent customer service record and is accessible to employees seeking guidance.

With the right health insurance partner, small companies will be better able to contain health care costs while also provide ng extra value to their employee population.

About: Kirk G. Pion, MHSA

Kirk Pion is the Director of Strategy, Innovation & Delivery for Health Care Service Corporation, the parent company for Blue Cross and Blue Shield of Illinois, Texas and New Mexico. Kirk is responsible for the research, development, marketing and administration of consumer-driven products, and most recently launched an integrated HSA product in conjunction with Mellon Bank. He has spoken on consumer-centered health care at a number of local and national conferences including Innovative Product Development in Managed Care as well as other venues. In addition, Kirk is responsible for the design, development and implementation of new employer group products, as well as enhancements to BCBSIL’s group health insurance product portfolio