The single health condition that costs employers $175 billion a year
If your wellness program doesn’t have a component that’s dedicated exclusively to preventing and managing diabetes, you’ll probably want to add one soon.
If your wellness program doesn’t have a component that’s dedicated exclusively to preventing and managing diabetes, you’ll probably want to add one soon.
That’s one of the major takeaways from a recent comprehensive report on the impact of diabetes.
It’s no secret that diabetes is a condition that can wreak havoc on employees’ health — and employers’ bottom lines.
But the problem is far worse than employers probably realize.
$175 billion annually in direct medical costs
The Northeast Business Group on Health (NEBGH) report on the effects of diabetes should serve as a real wake-up call for employers.
According to the NEBGH, employees with diabetes cost employers $175 billion per year in direct medical costs.
Of course, that eye-opening figure doesn’t even account for the numerous indirect costs associated with the condition, which the report says amount to around an additional $70 billion.
Perhaps, the most dire stat in the report centered on what lies ahead.
The NEBGH found that diabetes currently affects around 10% of the U.S. population – and researchers believe that figure could jump to 33% by as soon as 2050.
Potential ROI
Despite the troubling findings in the report, there was some good news.
Employers recognize diabetes is a major problem and are taking steps to remedy the situation.
Around half of the benefits professionals in the study said diabetes is one of their top three health concerns. Even better: 85% of those benefits pros currently have a diabetes prevention or management program in place — or they plan to start one in 2015.
And when a company’s medical plan effectively addresses diabetes, NEBGH says the employer can see a $4 return on investment for every dollar spent. So now may be a good time to talk to your health insurance provider about the resources available for combating diabetes.
