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State Could Save Insurance Costs through Wellness Initiatives
  11/19/2009 9:02:00 AM

Contact: State Rep. Lewis Moore
Capitol: (405) 557-7400

OKLAHOMA CITY (November 19, 2009) – State employees could collectively save millions on insurance medical expenses through better use of prevention programs, according to experts.

"Too often, Oklahomans pay for treatment of preventable conditions – such as smoking-related illness or diabetes – and those bills could be avoided or dramatically reduced through better prevention efforts," said state Rep. Lewis Moore, an Edmond Republican who requested a legislative study on the issue. "If we put more emphasis on prevention, it could drive down insurance costs for everyone."

As a result, lawmakers may incorporate wellness initiatives into a reform of the plan that provides health coverage to state employees.

"We have to make changes to our health plan design or it will become too costly to continue," Moore said. "It is now or never for our state health care benefit. As a state we are paying about $1 billion in premiums and spending $1.15 billion in claims. There is no instant fix for reducing health care costs, but that does not mean we can’t change the trajectory."

Members of the House Economic Development and Financial Services Committee recently heard from several officials who indicated significant savings are possible through preventive efforts.

Officials with the Oklahoma Employees Benefits Council said their "OKHealth Mentoring Program" has generated millions in savings. The program provides a web-based, one-on-one health mentoring lifestyle management to state employees that choose to participate.

Program participants have experienced a 40 percent improvement in blood pressure, a 29 percent reduction in smoking, a total reduction in blood sugar of 65 percent for those with diabetes, and better weight management.

State employees participating in the "OKHealth Mentoring Program" had average paid medical claims of $214 per month per person, compared to $264 per month per person for non-participating employees in 2006-2007.

As a result, officials estimate potential medical impact savings of $38 million per year if 22,200 state employees were to participate in the "OKHealth Mentoring Program."

Joseph Nicholson, vice president and chief medical officer for Blue Cross and Blue Shield of Oklahoma, predicted similar savings could be achieved through his company’s "medical home" initiative, a program focused on medical care management including wellness and preventative care.

Nicholson reported that a similar program in Pennsylvania reduced hospital admissions by 20 percent and provided 7 percent across-the-board medical savings.

"The old saying is true: An ounce of prevention is worth a pound of cure," Moore said. "By putting more emphasis upfront on prevention and wellness, we can save millions down the road on medical costs and improve the quality of life for Oklahomans."

Moore and other lawmakers have been meeting for months to develop a plant that will "lessen the taxpayers’ burden and positively impact the lives of those insured."

He said the group will develop a plan and provide reform options to House leadership in time for next year’s legislative session. That plan will include the opportunity for state employees to team the EBC’s wellness and coaching benefit and their proposal will incorporate design changes to motivate employees to take preventative steps.

"Collectively as a group, we have to make better decisions about our health," Moore said. "Whether it’s about food, smoking, drinking or exercise, what we do daily will affect the cost of our health. Preventative care could determine the number and types of claims we will see in the future and can make the difference between a financially sound program and one that can’t provide promised benefits."


 

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