title: The well-being valuation model: a method for monetizing the nonmarket good of individual well-being.
abstract: The objective of this research is to advance the evaluation and monetization of well-being improvement programs, offered by population health management companies, by presenting a novel method that robustly monetizes the entirety of well-being improvement within a population. This was achieved by utilizing two employers' well-being assessments with medical and pharmacy administrative claims (2010-2011) across a large national employer (n= 50,647) and regional employer (n= 6170) data sets. This retrospective study sought to monetize both direct and indirect value of well-being improvement across a population whose medical costs are covered by an employer, insurer, and/or government entity. Logistic regression models were employed to estimate disease incidence rates and input-output modelling was used to measure indirect effects of well-being improvement. These methodological components removed the burden of specifying an exhaustive number of regression models, which would be difficult in small populations. Members who improved their well-being were less likely to become diseased. This reduction saved, per avoided occurrence, US$3060 of total annual health care costs. Of the members who were diseased, improvement in well-being equated to annual savings of US$62 while non-diseased members saved US$26. The method established here demonstrates the linkage between improved well-being and improved outcomes while maintaining applicability in varying populations.
authors.affiliation: Center for Health Research, Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067 USA.
authors.forename: James A
authors.initials: JA
authors.lastname: Sidney
authors.affiliation: Center for Health Research, Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067 USA.
authors.forename: Ashlin
authors.initials: A
authors.lastname: Jones
authors.affiliation: Center for Health Research, Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067 USA.
authors.forename: Carter
authors.initials: C
authors.lastname: Coberley
authors.affiliation: Center for Health Research, Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067 USA.
authors.forename: James E
authors.initials: JE
authors.lastname: Pope
authors.affiliation: Center for Health Research, Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067 USA.
authors.forename: Aaron
authors.initials: A
authors.lastname: Wells
keywords: Exact matching; Health and well-being improvement; Health and well-being monetization; Medical cost minimization