Healthcare Cost Savings Potential for a Health Monitoring Program for
Companies with Self-Funded Benefits
As chronic disease and illness grows unchecked and unmonitored, the impact on employers and employees is significant and can include:
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More doctor visits or, in many cases, emergency room visits: This drives additional health care costs, time away from work, and inconvenience and costs to employers and employees.
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Improper and unhealthy behavior, due to lack of education: When employees are not fully educated on their condition, poor choices exacerbate their health problems, leading to cascading complications.
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Ignoring abnormal health changes: When employees fail to recognize new or advancing symptoms of their underlying condition, they can be at even higher risk, requiring more expensive treatment as the chronic issue worsens.
The American Heart Association (AHA) found, over a 5-year study comparing costs of a usual care group to those of a monitored group, that the usual care group had event costs of $1,538,000 and the monitored group had event costs of $758,000 for a ROI of 126%.
In addition, a cost utility analysis published in the Journal of the American Medical Association suggested that remote patient monitoring was associated with 87% fewer hospitalizations, 77% fewer deaths, and reduced per patient costs of $11,472 over standard care. A substantial cost savings when multiplied by hundreds or thousands of members or patients.
CRITICAL FACT: According to the American Medical Association (AMA), 70% of employee medical complaints don’t require an office visit. They can be handled over the phone. A properly managed health monitoring program reduces the high costs associated with doctor office visits.
Employees with more than two chronic conditions increased the average number of workdays missed due to injury or illness by: ​
3 - 9 Days per Year
Per every 30 employees, the total missed days is equivalent to having 1 person off ALL YEAR LONG.
This equates to a self-funded company with 300 employees having 10 employees off all year long…with pay. At an average salary of $60,000 per year that is a direct cost of $600,000 per year for the employer.
Source: NIH's Multiple chronic Conditions and Labor Force Outcomes: A Population Study of U.S. Adults. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4664600/