Prevention is Key as Healthcare Costs Rise

As healthcare costs continue to rise, businesses are looking for solutions to keep expenses down.

This news article points out that healthcare costs rose 7.4 percent this year and are expected to rise another 7.2 percent in 2012, more than twice the rate of inflation.

Some of that cost is being transferred to employees. In a June survey of employers, over half of the respondents indicated they planned to increase employee contributions to healthcare benefits next year.

However, employers are also looking to prevention as part of the cost-saving puzzle, and with good reason. The National Business Group on Health, a non-profit business association that represents over 300 large businesses, has a great article on the topic, which presents the “business case” for prevention.

Each year, millions of Americans are diagnosed with chronic diseases that are preventable through modifiable behaviors and appropriate medical care. The U.S. Department of Health and Human Services estimates that approximately 33 percent of all deaths in the United States are attributable to just three modifiable health behaviors: smoking, physical inactivity, and poor eating habits. According to the the NBGH article:

Chronic diseases are the primary drivers of direct healthcare costs. In fact, researchers estimate that 75% of all healthcare costs directly stem from preventable chronic health conditions such as type 2 diabetes, hypertension, and obesity.

Preventive services offer value and can make a tremendous difference in your overall health and well-being. Be sure to take advantage of preventative services offered by your healthcare provider.

Cake Health makes it easy to understand and manage your health care costs. We show you how much you’re paying and how you might be able to save money.

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