Discover The Top 3 Most-Utilized Chronic Care Benefits
Over 50% of employees have chronic conditions
Did you know that over 127 million people in the United States are living with a chronic condition? And this number is rising. According to the CDC, chronic diseases like hypertension, diabetes and obesity are increasing in prevalence, which is placing a significant strain on our healthcare system. Employers are also starting to feel the effects, costing them approximately $36.4 billion annually in lost productivity. So, what are organizations supposed to do?
Chronic care health benefits are one way businesses can help their employees address their health concerns while improving their bottom line. Below, we’ll reveal three of the top chronic care management benefits with the most utilization every employer should know.
1. Health insurance
One of the most important and highly utilized chronic care health benefits is…wait for it…health insurance. Probably not surprising but important to emphasize nonetheless. A survey found that more than 70% of employees have stayed at a job or chose a new one based on health insurance. In addition, six in ten employees felt that receiving health insurance through their jobs gave them a sense of financial security.
However, the type of insurance plan you select also plays a role.
Self-funded insurance
Unlike traditional insurance, self-funded plans are much more customizable, so the company can design a plan that fits their business needs. In addition, they’re not subject to the same taxes, fees and state requirements. This approach could provide better support for chronic care management as long as the employer considers their group's overall health.
It’s estimated that those with chronic conditions pay five times more annually (over $6,000) in healthcare coverage than those without a chronic ailment. This is because conditions like diabetes require routine doctor visits, various services and prescriptions to manage it.
With self-funded plans, employers set aside a certain amount for healthcare costs for the year, and if any goes unused, that money is returned to the business to be utilized as they see fit. Therefore, if your company anticipates spending more on employee health but sees reduced use thanks to wellness initiatives, you have some additional funding to work with.
Traditional or fully-funded insurance
While traditional insurance has been the standard in healthcare for decades, it may not be the most cost-effective approach for chronic care management. There are often restrictions that limit patient choices and costly out-of-pocket expenses. If your employees face monetary challenges, they may delay or forego medical services altogether, leading to worse and more costly health concerns later.
While those with chronic conditions may utilize healthcare services more, health insurance improves access and is linked to decreased death rates, improved health outcomes and greater productivity. From an employer standpoint, it means a healthier, more productive workforce.
2. Workplace wellness programs
Another highly utilized chronic care health benefit is workplace wellness programs. These programs currently cover over 50 million U.S. employees and are meant to reduce medical spending, improve productivity and boost overall well-being. Let’s consider a couple of examples.
Diabetes management
A 2022 study found that the total economic cost of type 2 diabetes to employers was almost $7,000 per person per year, most of which was linked to excess medical costs. However, lifestyle interventions can help better control diabetes (and expenses), which is where workplace wellness programs come in.
At McCormick & Company, Inc., employees who participated in their diabetes management wellness program reduced their A1C levels by an average of 0.24% and experienced significant weight loss. This inevitably led to a healthier workforce and cost-savings for the employer.
In some cases, employers may even be able to help prevent diabetes from occurring in employees most at-risk. One umbrella study on workplace interventions for type 2 diabetes prevention found that programs that include dietary changes, increased physical activity, and educational elements effectively reduce the risk of type 2 diabetes.
Obesity care management
Today, almost 40% of U.S. adults are obese, and those with an obesity diagnosis have an average of $12,588 in total annual health costs. The cost for non-obese individuals was much less, at about $4,600.
Obesity is a high-cost disease for employers and employees, as it leads to more short-term absences, long-term disability claims, presenteeism, higher life insurance premiums and more. Given that people spend most of their time in the workplace, it’s an excellent place to offer a wellness program to assist with obesity care management.
In 2021, overweight and obese employees at a healthcare clinic participated in a sixteen-week workplace weight loss program. They were assigned to a nutrition expert and held weekly group meetings. Participants lost an average of 13 pounds, but some also experienced improved blood pressure, sleep quality and depression. Another study also discovered that employee wellness programs can enhance certain dietary, anthropometric and cardiometabolic risk indicators.
3. Telehealth CCM health benefits
One chronic healthcare benefit that shows a lot of promise is telehealth. In fact, a 2022 KFF Employer Health Benefits Survey found that 96% of large firms with 50 or more employees offer some healthcare services via telemedicine. But why is that?
Well, telehealth allows employees to gain access to more affordable care and specialty providers without having to leave their homes and be exposed to contagions. While it’s not meant to replace traditional healthcare services completely, it is an alternative approach to chronic disease management.
For example, research shows that the rate of medication non-adherence is higher with chronic conditions, like hypertension, which leads to greater healthcare utilization and poorer health outcomes. However, telehealth can help narrow these gaps in care, as providers can handle medication reconciliation within moments over video while also increasing health literacy.
Other ways telehealth can be used for chronic disease management include:
Routine check-ins
Reviewing diagnostic imaging
Discussing test results
Nutrition counseling
Follow-up appointments
And more
Nowadays, employees view telehealth as a “must-have” employee benefit, and with chronic diseases affecting 50% of employees, employers should prioritize it. Offering telehealth could mean fewer workers' compensation claims, decreased absenteeism and presenteeism and lower healthcare costs for your organization.
Chronic care benefits are a necessity
As revealed above, the prevalence of chronic conditions is rising, so employers who want to stay ahead of the curve must take action now. The most competitive organizations will implement strategies that not only help treat these conditions but potentially prevent them too.
Speaking of a healthier workforce, OpenLoop creates customized telehealth benefit plans for businesses that want to develop an a la carte, fully branded benefits package that meets their employee's needs. By partnering with us, you gain access to our extensive nationwide provider and payer networks and white-label technology built to scale with your organization.
Want to learn more? Contact us today!
Our full suite of white-labeled virtual care services includes: