Healthcare Cost Modeling

Unhealthy employees can have a negative affect on your company's healthcare costs now - and in the future. Estimating future healthcare costs is important for more than just budgets. Companies need to know what to expect to determine how much to spend on prevention programs to help reduce employees' health risks. Our healthcare cost modeling uses data gathered from health risk assessments of our client companies to estimate the cost of caring for several major chronic diseases. With this information, it's easier to make a decision on how much to spend on prevention programs.

Estimating the cost of care for a chronic disease is more than how much patients spend on healthcare. To predict future costs we look at:

  • Likelihood of developing the disease from known risk factors, based on established, tested medical models.

  • Link this information with cost trends, inflation and changes in disease rates to obtain a reliable baseline model.

Analyzing data of a particular company's workforce lets decision makers decide, using the available data, where their prevention dollars are best spent. This also helps set the target for measuring improvements.

As new information is gathered through annual health risk assessments, the model is updated so changes can be made to prevention programs to reflect improvements or set-backs in employees. Information on risk factors, healthcare costs and disease rates are also updated annually to provide the latest information to be used in financial decision making.