The financial impact of changes in personal health practices.
The impact of changes in health practices on medical claims costs between 1985-1987 and 1988-1990 was examined among 796 employees. Employees completed a health risk appraisal in 1985 and 1988 and were categorized into health risk levels. High-cost status and high-risk status were significantly associated at both times. The percentage of employees with high-risk status decreased from 31.8% to 25.3% between 1985 and 1988 (P < 0.01). Changes in average costs and the percentage with high-cost status followed the risk change. The largest increase in average costs occurred in employees who moved from low-risk to high-risk status. The greatest reduction in average costs occurred in employees who moved from high-risk to low-risk status. Median costs were not as sensitive to risk change. The findings provide strong evidence that improving individual health status is associated with financial benefits.
Edington
D W
DW
Health Management Research Center, University of Michigan, Ann Arbor 48104-1688, USA.
Yen
L T
LT
Witting
P
P
D000041:Absenteeism; D000328:Adult; D016009:Chi-Square Distribution; D015331:Cohort Studies; D016001:Confidence Intervals; D003361:Cost Allocation; D005260:Female; D015438:Health Behavior; D017048:Health Care Costs / Q000706:statistics & numerical data*; D007722:Health Knowledge, Attitudes, Practice; D006801:Humans; D007344:Insurance Claim Reporting / Q000706:statistics & numerical data*; D007345:Insurance Claim Review / Q000706:statistics & numerical data*; D008297:Male; D016272:Occupational Health; D011446:Prospective Studies; D012016:Reference Values; D018570:Risk Assessment; D012494:Sampling Studies; D012907:Smoking; D012959:Socioeconomic Factors; D014481:United States