Corporate Wellness : Statistics in the Workplace  

National Healthcare Spending		Employer and Employee Health Insurance Costs
Spending on healthcare in 2004 had reached $1.9 trillion, and was projected to reach $2.9 trillion in 2009. (1)   In 2004, the United States spent 16 percent of its gross domestic product (GDP) on healthcare. It is projected that the percentage will reach 20 percent in the next decade. (1)   Although nearly 46 million Americans are uninsured, the United States spends more on healthcare than other industrialized nations, and those countries provide health insurance to all their citizens. (3)   Healthcare spending accounted for 10.9 percent of the GDP in Switzerland, 10.7 percent in Germany, 9.7 percent in Canada and 9.5 percent in France, according to the Organization for Economic Cooperation and Development. (4) Impact of Obesity   Each unit increase in BMI is associated with      higher healthcare costs and increased likelihood      of having claims for most major diagnostic codes     and for diabetes and heart diseases. (7)   Reducing excess weight in the workforce and     improving the health of obese workers could     positively impact U.S. workforce productivity. (8)   People who are obese are at increased risk for     heart disease, high blood pressure, diabetes,     arthritis-related disabilities, and some cancers. (10)   The estimated annual cost of obesity in the United     States in 2000 was about $117 billion. (10) Preventable Diseases Chronic diseases accounted for 5 of the 6 leading causes of disease in 2002 in the United States.  Much of the chronic disease burden is preventable. (10)   Tobacco use is the leading preventable cause of death in the United States.  Cigarette smoking causes an estimated 440,000 deaths, or about 1 of every 5 deaths, each year.  This estimate includes 35,000 deaths from secondhand smoke exposure. (10) Sources:		Premiums for employer-based health insurance rose by 9.2 percent in 2005, the fifth consecutive year of increases over 9 percent. All types of health plans -- including health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service plans (POS) -- showed this increase. (2)   The annual premium that a health insurer charges an employer for a health plan covering a family of four averaged $10,800 in 2005. Workers contributed $2,713, or 10 percent more than they did in 2004. The annual premiums for family coverage eclipsed the gross earnings for a full-time, minimum-wage worker ($10,712). (2)   Workers are now paying $1,094 more in premiums annually for family coverage than they did in 2000. (2)   Since 2000, employment-based health insurance premiums have increased 73 percent, compared to cumulative inflation of 14 percent and cumulative wage growth of 15 percent during the same period. (2)   Health insurance expenses are the fastest growing cost component for employers. Unless something changes dramatically, health insurance costs will overtake profits by 2008. (5)   According to the Kaiser Family Foundation and the Health Research and Educational Trust, premiums for employer-sponsored health insurance in the United States have been rising five times faster on average than workers' earnings since 2000. (2)   The average employee contribution to company-provided health insurance has increased more than 143 percent since 2000. Average out-of-pocket costs for deductibles, co-payments for medications, and co-insurance for physician and hospital visits rose 115 percent during the same period. (6) For more statistics on the state of our nation’s health, click here.

1.	Health Spending Projections Through 2015: Changes on the Horizon," Health Affairs Web Exclusive W61: 22 February 2006.
2.	The Henry J. Kaiser Family Foundation. Employee Health Benefits: 2005 Annual Survey. 2005. 14 September 2005.
3.	California Health Care Foundation. Health Care Costs 101 -- 2005. 02 March 2005.
4.	Pear, R.. "U.S. Health Care Spending Reaches All-Time High: 15% of GDP." The New York Times, 9 January 2004
5.	McKinsey and Company. The McKinsey Quarterly Chart Focus Newsletter, "Will Health Benefit Costs Eclipse Profits," September, 2004.
6.	Hewitt Associates LLC. Health Care Expectations: Future Strategy and Direction 2005. 17 November 2004.
7.	Wang F, McDonald T, Champagne LJ, Edington DW . Relationship of Body Mass Index and Physical Activity to Health Care Costs Among Employees. JOEM, 2004, 46:428-436
8.	Pronk NP, Martinson B, Kessler RC, Beck AL, Simon GE, Wang P. The association between work performance and physical activity, cardiorespiratory fitness, and obesity. JOEM, 2004, 2004;46(1):19-25
9.	http://www.nchc.org/facts/cost.shtml
10.	www.cdc.gov

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