Embed Size (px)
DESCRIPTION
2012 / 2013 Benefits Open Enrollment. Murray School District. Why do my medical premiums keep going up? Unsustainable Rise in Health Care Costs . Health care costs have risen more than 50% since 2006, to nearly $13,000 in 2012 - PowerPoint PPT Presentation
Citation preview
2012 / 2013 Benefits Open Enrollment
Murray School District
Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012 2
Why do my medical premiums keep going up?Unsustainable Rise in Health Care Costs
Health care costs have risen more than 50% since 2006, to nearly$13,000 in 2012– portion absorbed by
employees throughpayroll contributions and out of pocket cost has risen 82% in that time span, with the average employee spending nearly $5,000 per year in 2012
At expected market trend of 9%, health care premiums will exceed $16,000 in 2017, not including employee out of pocket costs
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2006 2009 2012 (proj.)
Employer Spend Employee Contribution Out of Pocket Cost
+52%
Source: Aon Hewitt Health Value Initiative, 2011 Analysis
$2,516
$4,581
$8,374
$12,759
Murray School District Is Not Immune to this trend
Claims to Premium Loss Ratio
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012 2012/2013
Claims Trend
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
$4,500,000.00
2008 / 2009 2009 / 2010 2010 / 2011 2011 / 2012
Claims
The District Administration has done it’s best to mitigate these costs
2008
/ 20
09
2009
/ 20
10
2010
/ 20
11
2011
/ 20
12
2012
/201
3
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Premium Trends Over Time
National Trend Increase (MedicalInflation) Prescribed Premium Increase
Actual Increase
Murray pays a higher % of Medical premium than most employers
FamilyCouple
Single
National Average
Murray School District
80.9% 80.9% 80.9%
79.0%
73%
76%
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
80.0%
82.0%
% of Premium Employer Pays
National Average
Murray School District
6
Top 15 Most Costly Conditions
Lack of Health Screening
Poor Stress Management
Smoking
Physical Inactivity
What is driving these costs?… Human Behavior
80% of Total Costs of all Chronic Illnesses Worldwide
Sources: 2010 World Economic Forum
DiabetesCADHypertension
Back PainObesityCancer
AsthmaArthritisAllergies
SinusitisDepressionCHF
COPDCKDHigh Cholesterol
Insufficient Sleep
Poor Standard-of-Care
Compliance
Alcohol Consumption
Poor Diet
8 Behaviors and Risks
1 Based on Carrier gaps in care report2 Based on self insured claims incurred 6/2010-5/2011Consulting | Health and Benefits
Proprietary & Confidential | Point of View 02/2012
Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012 7
Worsening Health Risk – A National Problem
of children in the U.S. are overweight or obese32%
of Americans will be overweight or obese by 2030 based on current trends
of all medical spending is accounted for by obesity, compared to 6.5% in 1998
increase in claims cost for each unit increase of BMI
the new onset of diabetes for a weight gain of 11–18 pounds over 10 years
of adults in the U.S. are overweight and 34% are obese
deaths per year may be attributable to obesity
increase in the risk of coronary heart disease mortality for each 2.2 pound increase in body weight
It starts with Obesity: know the NUMBERS
86%
300,000
1%–1.5%
2.3%
10%
33%
Double
Consulting | Health and BenefitsProprietary & Confidential | Point of View 02/2012 8
And it doesn’t just affect Medical costs
Average number of work days per year per employee lost specifically to obesity related issues / illness.
Increase in workers compensation claims per 100 employees per year for ee’s with a BMI >39 vs. recommended BMI
Increased likelihood of having workplace limitations or accommodations due to obesity related physical restrictions
2004 nationwide employer costs due to obesity related employee absences
increase in duration of WC disability claims for employees with BMI >39
Absenteeism and “Presenteism”
2 Days$4.3 Billion
5 x
$51,091 vs. $7,503
5.85
6%
Average per 100 employee WC medical claim cost for obese vs. recommend weight ee.
WHY WALKING?Walking is a simple, cost-effective way to lower healthcare costs, boost productivity, reduce workers’ compensation claims, and improve chronic health conditions such as diabetes, high blood pressure, high cholesterol, and depression. Walking can also help you to reduce stress and manage your weight.
The 15 to Fit program encourages you to take a 15-minute walk while at work twice a day.
SelectHealth is more than just your health plan – we’re your health and wellness partner. A little effort today can have big results tomorrow.
Member DiscountsWe work with local and national vendors so that you can receive
discounts to many health-related services. To receive these discounts, just show your SelectHealth ID card.
Visit www.selecthealth.org/discounts to learn more.
• Health clubs & fitness centers• Personal Training• Vitamins & nutritional supplements • Spas & cosmetic services• Massage therapy & acupuncture• Chiropractic services• Hearing aids
