Unhealthy Choices Cost Healthcare Plans Billions

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In the largest study of its kind, researchers from the University of Michigan looked at 10 modifiable health risks (conditions or behaviors that can be improved or eliminated by making healthier choices) in roughly 223,500 people across seven industries.

The research found that one out of every four dollars employers spent for health care is tied to unhealthy lifestyle choices: smoking, stress, and obesity. This is despite the fact that most large employers have workplace wellness programs.

“There are hundreds of well-designed programs, but thousands of programs are too superficial to have an impact, said the study’s author and director of the University of Michigan Health Management Research Center at the School of Kinesiology, Michael O’Donnell. “The best programs increase awareness about the link between lifestyle and health, motivate people to change and build the skills necessary to do so, and provide opportunities to practice a healthy lifestyle.”

The United States has worse health outcomes than most other developed nations, despite spending almost twice as much on healthcare.

“Medical care costs are out of control in the U.S. and also for employers,” said O’Donnell. “This makes it difficult for some businesses to compete globally.”

According to the study, healthcare costs for a healthy employee are roughly $3,000 and roughly $10,000 for an employee with at least one medical condition.

“Employee wellness programs are a win-win for employers and employees,” said O’Donnell. “If employees improve their lifestyle, they feel better and reduce their chances of getting sick.”

By The Numbers By The Numbers

25.1

percent

of Latinos remain without health insurance coverage

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