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Employers give employees financial incentives to improve health How1 #366557 Employers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes). | |
+Citations (6) - CitationsAdd new citationList by: CiterankMapLink[1] Overcoming obesity: An initial economic analysis
Author: Richard Dobbs, Corinne Sawers, Fraser Thompson, James Manyika - Jonathan Woetzel, Peter Child, Sorcha McKenna, Angela Spatharou (McKinsey Global Institute) Publication info: 2014 November Cited by: David Price 10:52 PM 13 January 2015 GMT
Citerank: (60) 340964Tackling obesity in the UKWith concern growing that the Foresight analysis—that 50% of the UK population could be obese by 2050, at an annual cost to the nation of around £50 billion per year [2]—substantially underestimates the scale of the unfolding obesity crisis, the College of Contemporary Health is working with the wider policy community to develop a whole systems map of the obesity crisis and the potential responses.7F1CEB7, 348675Adopt a whole systems approach to obesityTackling obesity effectively—accomplishing a population wide-shift—requires a comprehensive and integrated whole systems approach, involving a range of measures focusing on individuals, social and other systems, including at the local and community level, and on the interrelated physical, physiological, social and cognitive factors that determine health outcomes.565CA4D9, 348767A potentially unsustainable financial burden on the health systemThe range of obesity's impacts makes accurate economic analysis challenging; however, a November 2014 study from the McKinsey Global Institute placed the annual economic impact on the UK at around $73bn (£46bn). Earlier analysis and modelling for the 2007 Foresight Report suggested a cost to the NHS of around £4.2bn annually to treat people with health problems related to elevated BMI and a total wider cost to the economy of around £15.8bn (rising to £27bn by 2015 and £49.9bn by 2050).57DE7179, 348770Tackling obesityMany policy interventions have been suggested to address the obesity crisis across multiple studies—and indeed many such measures have been implemented, and are being implemented, now. There's recognition too that these interventions need to be part of a coherent and comprehensive whole systems strategy [4]; with some grounds for optimism that such an approach has the potential to accomplish a significant reduction in the prevalence of obesity in the UK across the next decade. [2]565CA4D9, 348780Causes of obesityUnderstanding the causes of obesity is critical to the success of prevention and treatment strategies. However, while (simply put) obesity occurs when energy intake from food and drink consumption is greater than energy expenditure through the body’s metabolism and physical activity over a prolonged period (resulting in the accumulation of excess body fat), in reality many complex behavioural and societal factors contribute systemically to the current crisis and no single influence dominates.555CD992, 352311Lost productivityObesity has as a serious impact on UK economic development – constraining economic productivity and increasing business costs – affecting individuals’ ability to get and hold down work, their self-esteem and their underlying mental health.57DE7179, 352311Lost productivityObesity has as a serious impact on UK economic development – constraining economic productivity and increasing business costs – affecting individuals’ ability to get and hold down work, their self-esteem and their underlying mental health.57DE7179, 352373Invest in weight management servicesThe departments of health in the four nations should extend and increase the provision of weight management services across the country, to mirror the provision of smoking cessation services.565CA4D9, 352710Develop better pharmaceutical obesity therapiesObesity drug sales are forecast to $3.8bn globally in 2018 [2]—in comparison to $57bn for Diabetes drug sales[2]—with evidence suggesting that the modest average weight losses achieved with current anti-obesity agents may be of some clinical benefit [5]. However, the current generation of drugs, which act on the central nervous system to suppress appetite, have raised significant health concerns—including psychiatric disorders, such as suicidal behaviour, depression, and cardiovascular problems.565CA4D9, 352718Invest in employee health and wellbeingEncourage organisations to invest employee health and wellbeing; including a health risk assessment and the provision of resources to help employees address the factors that pose the greatest risk to their health and wellness. [1], [2], [3], [4], [5]565CA4D9, 366161McKinsey Global InstituteThe MGI discussion paper, Overcoming obesity: An initial economic analysis studied studied 74 interventions (in 18 areas) that are being discussed or piloted somewhere around the world to address obesity, including subsidized school meals for all, calorie and nutrition labeling, restrictions on advertising high-calorie food and drinks, and public-health campaigns – with sufficient data found on 44 of the interventions in 16 areas. 58D3ABAB, 366169Obesity Interventions identified by MGI74 interventions – across 18 groups – to reduce obesity.565CA4D9, 366449Deploy and integrate as many interventions as possible at scaleCommission and deploy as many interventions as possible at scale and delivered effectively, and integrated way, by the full range of sectors in society.565CA4D9, 366450Understand how to align incentives and build cooperation109FDEF6, 366452No single solution creates sufficient impact to reverse obesityNo single solution creates sufficient impact to reverse obesity: only a comprehensive, systemic program of multiple interventions is likely to be effective. 1198CE71, 366453Many interventions are highly cost-effectiveAlmost all of the interventions we analyzed are highly cost-effective from the viewpoint of society.1198CE71, 366454Education and personal responsibility are necessary but not sufficientEducation and encouraging personal responsibility are necessary but not sufficient.1198CE71, 366456Co-ordinated multi-party actions are required to tackle obesityCapturing the full potential impact is likely to require commitment from government, employers, educators, retailers, restaurants, and food and beverage manufacturers, and a combination of top-down corporate and government interventions and bottom-up community-based ones. 1198CE71, 366457Government obesity efforts are too fragmented to be effectiveGovernment efforts to tackle the obesity issue seem too fragmented to be effective. In the United Kingdom, 15 central government departments; all local authorities with responsibility for health, education, and local planning; 16 EU directorates-general; and a wide range of nongovernmental organizations all have a significant impact on the major intervention areas. [1]118FF4888, 366458Current incentives are mis-aligned118FF4888, 366460Desire to prioritise options becomes a barrier to actionA search for the “best” interventions or a single solution could delay action and displace responsibility. Given the seriousness of the obesity issue, the aim should be to do as much as possible as soon as possible. [1]118FF4888, 366462Experiment with multiple interventionsSociety should be prepared to experiment with possible interventions. In many intervention areas, impact data from high-quality, randomized control trials are not possible to gather. So, rather than waiting for such data, the relevant sectors of society should be pragmatic with a bias toward action, especially where the risks of intervening are low, using trial and error to flesh out their understanding of potential solutions. 565CA4D9, 366463Paucity of investment in intervention measuresThe UK invests less than $1 billion a year in prevention activities such as weight-management programs and public health campaigns – i.e. around 1% of the social cost of obesity in the UK. More investment is required.555CD992, 366467Encourage active transport (walking and cycling)Government authorities redesign urban planning to facilitate and encourage walking and cycling.565CA4D9, 366479Align the school curriculum with obesity, nutrition and activity goals565CA4D9, 366479Align the school curriculum with obesity, nutrition and activity goals565CA4D9, 366481Improve surgical interventions for obesity565CA4D9, 366483Types of weight-management services565CA4D9, 366555Employers offer team challenge incentive schemes in the workplaceEmployers provide team challenge activities to encourage physical activity and improved key health indicators in the workplace.565CA4D9, 366827Develop a coherent fiscal, regulatory and governance frameworkTake every opportunity, iteratively over time, to bring the public fiscal, regulatory and governance framework into alignment with public health goals on obesity. Use taxes, subsidies, targets and pricing signals to incentivise change in behaviour, supply and consumption by aligning measures with the health properties of food and drink and behaviour—and seek, wherever practical, to amplify positive patterns that are aligned with the policy goals and damp those that pull against.565CA4D9, 371556Many obesity policy measures appear to be cost-effective for societyThe recent MGI study [1] reported that almost all of the obesity policy interventions included in its economic analysis appeared to be highly cost-effective at the societal level—i.e. the health-care costs and productivity savings that accrue from reducing obesity through a specific intervention outweighed the direct investment required to deliver that intervention when assessed over the full lifetime of the target population.1198CE71, 399546Tackling obesityMany policy interventions have been suggested to address the obesity crisis across multiple studies—and indeed many such measures have been implemented, and are being implemented, now. There's recognition too that these interventions need to be part of a coherent and comprehensive whole systems strategy [4]; with some grounds for optimism that such an approach has the potential to accomplish a significant reduction in the prevalence of obesity in the UK across the next decade. [2]565CA4D9, 399547Adopt a whole systems approach to obesityTackling obesity effectively—accomplishing a population wide-shift—requires a comprehensive and integrated whole systems approach, involving a range of measures focusing on individuals, social and other systems, including at the local and community level, and on the interrelated physical, physiological, social and cognitive factors that determine health outcomes.565CA4D9, 399548Invest in employee health and wellbeingEncourage organisations to invest employee health and wellbeing; including a health risk assessment and the provision of resources to help employees address the factors that pose the greatest risk to their health and wellness. [1], [2], [3], [4], [5]565CA4D9, 399552Develop a coherent fiscal, regulatory and governance frameworkTake every opportunity, iteratively over time, to bring the public fiscal, regulatory and governance framework into alignment with public health goals on obesity. Use taxes, subsidies, targets and pricing signals to incentivise change in behaviour, supply and consumption by aligning measures with the health properties of food and drink and behaviour—and seek, wherever practical, to amplify positive patterns that are aligned with the policy goals and damp those that pull against.565CA4D9, 399555Many obesity policy measures appear to be cost-effective for societyThe recent MGI study [1] reported that almost all of the obesity policy interventions included in its economic analysis appeared to be highly cost-effective at the societal level—i.e. the health-care costs and productivity savings that accrue from reducing obesity through a specific intervention outweighed the direct investment required to deliver that intervention when assessed over the full lifetime of the target population.1198CE71, 399561Deploy and integrate as many interventions as possible at scaleCommission and deploy as many interventions as possible at scale and delivered effectively, and integrated way, by the full range of sectors in society.565CA4D9, 399567Employers offer team challenge incentive schemes in the workplaceEmployers provide team challenge activities to encourage physical activity and improved key health indicators in the workplace.565CA4D9, 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9, 399575Align the school curriculum with obesity, nutrition and activity goals565CA4D9, 399575Align the school curriculum with obesity, nutrition and activity goals565CA4D9, 399586Develop better pharmaceutical obesity therapiesObesity drug sales are forecast to $3.8bn globally in 2018 [2]—in comparison to $57bn for Diabetes drug sales[2]—with evidence suggesting that the modest average weight losses achieved with current anti-obesity agents may be of some clinical benefit [5]. However, the current generation of drugs, which act on the central nervous system to suppress appetite, have raised significant health concerns—including psychiatric disorders, such as suicidal behaviour, depression, and cardiovascular problems.565CA4D9, 399588Improve surgical interventions for obesity565CA4D9, 399592Invest in weight management servicesThe departments of health in the four nations should extend and increase the provision of weight management services across the country, to mirror the provision of smoking cessation services.565CA4D9, 399599Encourage active transport (walking and cycling)Government authorities redesign urban planning to facilitate and encourage walking and cycling.565CA4D9, 399611Understand how to align incentives and build cooperation109FDEF6, 399612Co-ordinated multi-party actions are required to tackle obesityCapturing the full potential impact is likely to require commitment from government, employers, educators, retailers, restaurants, and food and beverage manufacturers, and a combination of top-down corporate and government interventions and bottom-up community-based ones. 1198CE71, 399613No single solution creates sufficient impact to reverse obesityNo single solution creates sufficient impact to reverse obesity: only a comprehensive, systemic program of multiple interventions is likely to be effective. 1198CE71, 399614Many interventions are highly cost-effectiveAlmost all of the interventions we analyzed are highly cost-effective from the viewpoint of society.1198CE71, 399615Education and personal responsibility are necessary but not sufficientEducation and encouraging personal responsibility are necessary but not sufficient.1198CE71, 399617Experiment with multiple interventionsSociety should be prepared to experiment with possible interventions. In many intervention areas, impact data from high-quality, randomized control trials are not possible to gather. So, rather than waiting for such data, the relevant sectors of society should be pragmatic with a bias toward action, especially where the risks of intervening are low, using trial and error to flesh out their understanding of potential solutions. 565CA4D9, 399715Types of weight-management services565CA4D9, 399887Causes of obesityUnderstanding the causes of obesity is critical to the success of prevention and treatment strategies. However, while (simply put) obesity occurs when energy intake from food and drink consumption is greater than energy expenditure through the body’s metabolism and physical activity over a prolonged period (resulting in the accumulation of excess body fat), in reality many complex behavioural and societal factors contribute systemically to the current crisis and no single influence dominates.555CD992, 399932Paucity of investment in intervention measuresThe UK invests less than $1 billion a year in prevention activities such as weight-management programs and public health campaigns – i.e. around 1% of the social cost of obesity in the UK. More investment is required.555CD992, 399973A potentially unsustainable financial burden on the health systemThe range of obesity's impacts makes accurate economic analysis challenging; however, a November 2014 study from the McKinsey Global Institute placed the annual economic impact on the UK at around $73bn (£46bn). Earlier analysis and modelling for the 2007 Foresight Report suggested a cost to the NHS of around £4.2bn annually to treat people with health problems related to elevated BMI and a total wider cost to the economy of around £15.8bn (rising to £27bn by 2015 and £49.9bn by 2050).57DE7179, 400018Lost productivityObesity has as a serious impact on UK economic development – constraining economic productivity and increasing business costs – affecting individuals’ ability to get and hold down work, their self-esteem and their underlying mental health.57DE7179, 400018Lost productivityObesity has as a serious impact on UK economic development – constraining economic productivity and increasing business costs – affecting individuals’ ability to get and hold down work, their self-esteem and their underlying mental health.57DE7179, 400061Current incentives are mis-aligned118FF4888, 400083Government obesity efforts are too fragmented to be effectiveGovernment efforts to tackle the obesity issue seem too fragmented to be effective. In the United Kingdom, 15 central government departments; all local authorities with responsibility for health, education, and local planning; 16 EU directorates-general; and a wide range of nongovernmental organizations all have a significant impact on the major intervention areas.118FF4888, 400084Desire to priortise options becomes a barrier to actionA search for the “best” interventions or a single solution could delay action and displace responsibility. Given the seriousness of the obesity issue, the aim should be to do as much as possible as soon as possible.118FF4888 URL:
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Link[2] Innovative strategies targeting obesity and non-communicable diseases in South Africa: what can we learn from the private healthcare sector?
Author: E. V. Lambert, T. L. Kolbe-Alexander Publication info: 2013 November, Obes Rev. 2013 Nov;14 Suppl 2:141-9. doi: 10.1111/obr.12094 Cited by: David Price 10:54 PM 13 January 2015 GMT Citerank: (3) 373020Discovery Health's Vitality ProgrammeDiscovery Health, South Africa's largest private health insurer with over 2.5 million beneficiaries, developed a successful incentivized health promotion programme called "Vitality", which includes health risk assessments, subsidized gym memberships and smoking cessation or weight loss programmes with many incentives (including cash back on purchases of healthy foods).62C78C9A, 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9, 399623Discovery Health's Vitality ProgrammeDiscovery Health, South Africa's largest private health insurer with over 2.5 million beneficiaries, developed a successful incentivized health promotion programme called "Vitality", which includes health risk assessments, subsidized gym memberships and smoking cessation or weight loss programmes with many incentives (including cash back on purchases of healthy foods).62C78C9A URL: | Excerpt / Summary Over 50% of South African adult women and 30% of adult men are either overweight or obese, and nearly half of all adults are insufficiently active, with major increases in obesity-associated healthcare expenditures since 1980, a high proportion of which are paid by private health insurance. In this paper, we describe the Vitality programme, an incentivized health promotion programme from South Africa's largest private health insurer, Discovery Health, with over 2.5 million beneficiaries. Wellness activities of the programme include health risk assessments, subsidized gym memberships and smoking cessation or weight loss programmes with many incentives, including cash back on purchases of healthy foods. This incentive-based programme has shown a significant relationship between levels of engagement in wellness activities, in particular increasing participation in fitness-related activities, with lower healthcare expenditure and an increase in the overall ratio of healthy foods to total food purchases. This programme demonstrates that incentives may reduce the barriers for entry into care, increase preventive screening and increase engagement in healthy behaviours for prevention and management of obesity. This 'carrots versus sticks' approach may have implications for public health policy even in lower- and middle-income settings and underserved communities. |
Link[3] NHS Five Year Forward Review
Author: NHS England Publication info: 2014 October Cited by: David Price 2:54 PM 21 January 2015 GMT Citerank: (4) 349157National Health ServiceThe four publicly funded health care systems in the countries of the United Kingdom are referred to as the National Health Service (NHS). The individual systems are: National Health Service (England), Health and Social Care in Northern Ireland, NHS Scotland, NHS Wales.58D3ABAB, 370389UK Health system is under severe pressure on multiple frontsThe future health of millions of children, the sustainability of the NHS, and the economic prosperity of Britain all now depend on a radical upgrade in prevention and public health. Twelve years ago Derek Wanless’ health review [2] warned that unless the country took prevention seriously we would be faced with a sharply rising burden of avoidable illness. That warning has not been heeded – and the NHS is on the hook for the consequences. [1]118FF4888, 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9, 400064UK Health system is under severe pressure on multiple frontsThe future health of millions of children, the sustainability of the NHS, and the economic prosperity of Britain all now depend on a radical upgrade in prevention and public health. Twelve years ago Derek Wanless’ health review warned that unless the country took prevention seriously we would be faced with a sharply rising burden of avoidable illness. That warning has not been heeded – and the NHS is on the hook for the consequences.118FF4888 URL:
| Excerpt / Summary The NHS will therefore now... help develop and support new workplace incentives to promote employee health and cut sickness-related unemployment. |
Link[4] Workplace Wellness Programs Can Generate Savings
Author: Katherine Baicker, David Cutler, Zirui Song Publication info: 2010 February, Health Affairs 29, No.2 2010, 10.1377/hlthaff.2009.0626 Cited by: David Price 10:09 AM 23 January 2015 GMT Citerank: (1) 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9 URL:
| Excerpt / Summary Amid soaring health spending, there is growing interest in workplace disease prevention and wellness programs to improve health and lower costs. In a critical meta-analysis of the literature on costs and savings associated with such programs, we found that medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent. Although further exploration of the mechanisms at work and broader applicability of the findings is needed, this return on investment suggests that the wider adoption of such programs could prove beneficial for budgets and productivity as well as health outcomes. |
Link[5] Workplace wellness regulations: First, do no harm
Author: Carla Saporta, Jeremy Cantor - The Greenlining Institute, Prevention Institute Publication info: 2013 January, 18 Cited by: David Price 10:37 AM 23 January 2015 GMT Citerank: (1) 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9 URL:
| Excerpt / Summary With health care costs spiraling out of control, policymakers are increasingly focused on promoting prevention, including incorporating wellness and disease-prevention efforts into the workplace. The potential savings are massive. In our home state of California alone, preventable chronic disease costs $22 billion a year in medical costs and lost productivity, according to the Department of Public Health This push for workplace wellness is crucially important, both for improving Americans' health and for controlling rising healthcare expenditures If done wrong, however, these well-intended efforts could do significant harm.
So what sort of effective workplace wellness program should the new federal rules encourage? When The Greenlining Institute and Prevention Institute reviewed current research and interviewed small business owners, we found that the most effective workplace wellness programs included several key components.
One important part is collaboration between workers and management in the design of programs. Rather than imposing workplace wellness as a top-down directive, managers should work with employees, who should have a voice in selecting program elements. This will also help ensure that programs are culturally relevant to the firm's workforce.
The best programs also make use of comprehensive, multifaceted strategies that focus on both individuals and their environment. These can include a variety of elements, including counseling and information, assessments to help employees identify and address key risk factors, and establishment of policies and practices to support a healthy workplace, such as encouraging the use of stairs and establishing healthy food guidelines for cafeterias and vending machines. Sadly, while 90 percent of workplaces report some sort of wellness activity, only seven percent provide the multiple elements necessary for a truly effective approach.
We also have a pretty good idea of what doesn't work, and heading the list are strategies that tie individual employees' share of health insurance premiums to health-related behaviors and/or meeting health benchmarks. Increasing or decreasing an employee's contribution to health premiums based on blood pressure measurements or health behaviors such as smoking means that, according to the Washington Post, "American families with average health benefits could have $6,688 a year riding on blood tests and weigh-ins."
While superficially attractive, this approach is problematic for a number of reasons. First, the evidence suggests it doesn't work. Punitive measures haven't been linked to improved health outcomes and may instill resentment among employees. Second, raising premiums based on health benchmarks will shift health care costs to the least healthy workers. This can have the perverse effect of making health care (including wellness and preventive care) less available to those who need it most. In this way, the rules run counter to the spirit and intent of the Affordable Care Act. And finally, such punitive measures will have the most damaging effects on people of color and low-income workers. These workers are most likely to suffer from chronic conditions and to lack resources to improve their health, virtually guaranteeing that they will be disproportionately penalized. |
Link[6] Health, Equity, and the Bottom Line: Workplace Wellness and California Small Businesses
Author: Carla Saporta, Nicole Roscoe, Alexis Dennis, Jeremy Cantor, Jason Wurtz - The Greenlining Institute, Prevention Institute Publication info: 2012 Cited by: David Price 10:42 AM 23 January 2015 GMT Citerank: (1) 399568Employers give employees financial incentives to improve healthEmployers provide material incentives to individuals for improved key health indicators (e.g., discounts on insurance premiums, gym membership, prizes).565CA4D9 URL:
| Excerpt / Summary We are cautiously optimistic about the potential of workplace-wellness programs to help contain healthcare costs and to improve the health and well-being of millions of California’s workers. Preventing illness and injury through workplace-based strategies potentially benefits employees and their families, employers, and public and private insurance providers. There is emerging evidence about the effectiveness of WWPs in improving chronic disease outcomes, and a long history of occupational health and safety practices reducing workplace injury and death. Incentives in the ACA have the potential to serve as a catalyst for expanding WWP’s broadly in California. However, policy solutions need to respond to potential unintended consequences and account for the state’s incredibly diverse communities and businesses in order to make wellness programs work for all Californians.
If policies and programs are developed and implemented carelessly, workplace wellness programs could be ineffective or potentially detrimental to employees, and/or exacerbate health inequities. Therefore, a critical need exists to have a robust dialogue that engages a range of stakeholders—including employers, employees, public health advocates, and health experts—to develop a strategic and comprehensive approach to workplace wellness in small businesses, especially those who employ and are operated by people of color. |
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