Secret RAND Report Trashes Employer ‘Wellness’ Programs

May 25th, 2013 No comments »

A Reuters story by Sharon Begley discloses a report from RAND Corp. provided to the US Departments of Labor and Health and Human Services . The study finds only a modest benefit in wellness programs.

It states, “According to a report by researchers at the RAND Corp, programs that try to get employees to become healthier and reduce medical costs have only a modest effect. Those findings run contrary to claims by the mostly small firms that sell workplace wellness to companies ranging from corporate titans to mom-and-pop operations.

RAND delivered the congressionally mandated analysis to the U.S. Department of Labor and the Department of Health and Human Services last fall.

The report found, for instance, that people who participate in such programs lose an average of only one pound a year for three years.

In addition, participation “was not associated with significant reductions in total cholesterol level.” And while there is some evidence that smoking-cessation programs work, they do so only “in the short term.”

Most large U.S. employers believe the programs improve workers’ health and reduce or at least keep the lid on medical spending. “Companies from the CEO on down feel that these programs are bringing value,” said Maria Ghazal, a vice president at the Business Roundtable, the association of chief executives of big companies. “The criticism is surprising, because companies are not hearing that internally.”

Some experts not involved with the new report say even the modest benefits RAND found need qualification.

“The strongest predictor of whether someone will lose weight or stop smoking is how motivated they are,” said Al Lewis, founder and president of the Disease Management Purchasing Consortium International, which helps self-insured employers and state programs reduce healthcare costs. “Since the programs are usually voluntary, the most motivated employees sign up. That makes it impossible to credit the programs with success in smoking cessation or weight loss rather than the employees’ motivation.”

For its report, RAND collected information about wellness programs from about 600 businesses with at least 50 employees and analyzed medical claims collected by the Care Continuum Alliance, a trade association for the health and wellness industry.

Industry experts noted that whenever researchers analyze hundreds of programs, there are inevitably more effective and less effective ones.

“Traditional workplace wellness barely scratches the surface,” said Keith Lemer, president of WellNet, which provides programs to Cumulus Media, Viking Range Corp and the Charlie Palmer Group of restaurants, among others. “Done right, (the program) requires the integration of clinical data, wellness, health coaching, and work flow.” The initiatives succeed if they have “senior level support and a high-degree of employee engagement in healthy behaviors,” he said.

The report’s conclusions about the financial benefits of workplace wellness programs are also grim. In theory, the programs should reduce medical spending as employees become healthier and thereby avoid expensive conditions such as heart disease, cancer and stroke.

In fact, workers who participated in a wellness program had healthcare costs averaging $2.38 less per month than non-participants in the first year of the program and $3.46 less in the fifth year. Those modest savings were not statistically significant, meaning they could have been due to chance and not to the program.

More surprisingly, workplace wellness did not catch warning signs of disease or improve health enough to prevent emergencies. “We do not detect statistically significant decreases in cost and use of emergency department and hospital care” as a result of the programs, RAND found.

The RAND report was mandated by the Affordable Care Act, the healthcare reform law known as Obamacare. Two sources close to the report expected it to be released publicly this past winter. Reuters read the report when it was briefly posted online by RAND on Friday before being taken down because the federal agencies were not ready to release it, said a third source with knowledge of the analysis.”

This report comes amid a lobbying blitz by major Americans corporations to get tougher regulations from the Obama Administration, according to recent reports.

 

Employer Wellness, EEOC, Data Warehousing, Predictive Analytics

May 23rd, 2013 No comments »

Download my comments to the EEOC filed today looking at employer wellness programs and the development of data warehousing and predictive analytics. How new technology can be used to discriminated against persons with obesity. Morgan Downey_EEOC_Employer Wellness Comments

Employer Wellness Issue Heats Up

May 20th, 2013 No comments »

The Equal Employment Opportunity Commission (EEOC) held a long hearing on May 8, 2013 on employer wellness programs. Opponents made a strong case that there was virtually no way that a mandatory health-contingent wellness plan could not discriminate against protected classes of workers. (See statement of Judith Lichtman) On the other hand, the more pro-business representatives argued that Congress and the Administration supported the changes in the Affordable Care Act and the programs where here to stay. It seems that all parties are urging the EEOC to provide guidances to employers.

The testimony came amid a backdrop of waiting for the final regulations from the Obama Administration. The comment period closed in January and many were expecting we would have final regulations by now. Politico reported that a group of corporate CEOs with the Business Roundtable were in Washington recently to lobby the Administration to avoid further weakening of the regulations.

Forbes magazine was reporting the CVS-Caremark was penalizing workers $600 annually if they failed to complete a health risk assessment. The article noted that most companies did not provide such stiff penalties but many were moving in that direction.

Meanwhile, several research articles provide only lukewarm support for weigh loss employer wellness programs.

A Health Affairs article by Ron Goetzel and colleagues, found only 22 % of employer health care costs could be attributed to 10 modifiable health factors (including obesity). This is actually a drop from 24.9% in 1998, even though rates of obesity have increased and costs related to obesity have gone up. Obesity contributed the most excess costs at $347 per capita. Goetzel, Pei, et al,

Another recent paper was a longitudinal study at the worker productivity in terms of absenteeism, presenteeism and job performance associated with changes in 19 modifiable well-being risks. These included physical health risks, health behavior risks, social and emotional health risks work-related risks and financial health risks.  The researchers found that, “Obesity, high cholesterol, tobacco use and excessive alcohol generally contributed to productivity changes insignificantly or unfavorable, possibly because of its multicolinearity with other risks that are closely correlated.” However, they noted that, “Health-related risk explained only a portion of the total productivity variances. For example, Riedel et al found that health risks accounted for 7.8% of the total variance in productivity impairment and acknowledged that the majority of the variation was left unexplained. Lenneman et al also found only 8.5% of the variance in productivity was contributed by health risks…We found that reductions in work-related well-being risks and financial health risks significantly contributed to improvement in productivity measures especially for measures of presenteeism and job performance that were not attributable solely to the more narrow definition of physical health.” They found modest numbers of workers were able to make improvements: 25% reduced their physical health risks 26% improved their health behaviors 16% improved their social and emotional health, 31% improved their work-related risks and 13% their financial health risks. Improvements in absenteeism, decrease in presenteeism and a modest improvement in job performance accompanied such changes. They calculated these improvements were equivalent to a savings of $468 per person per year. Shi, et al.

Ted Kyle reports in his blog that one program, Healthy Blue Living, requires obese participants to wear a pedometer which uploads their physical activity to the employer wellness program. The employees must meet daily step goals if they want to keep full health benefits. Not doing so could cost them each $2000 a year. Kyle notes (and I strongly agree) that this constitutes human experimentation without the protection of the federal regulation protecting human subjects, 45 Code of Federal Regulations Part 46. In fact, the program is not that successful. Promotional material notes that only 16% who agreed got their weight under a BMI of 30.

Yet another study published in Health Affairs looked at one hospital system’s wellness program. The program provide a substantial incentive/penalty for participation in a health risk assessment (which included automated feedback) signing a health pledge, health fairs and physician referrals. The study found a significant reduction in hospitalizations for conditions related to the conditions covered by the wellness program. However, there was an increase in medication costs. Combined with the costs of the wellness program and incentives, the authors concluded, “It is unlikely that the program saved money.” Gowrisankaran G, et al. A Hospital System’s Wellness Program Linked to Health Plan Enrollment Cut Hospitalizations But Not Overall Costs, Health Affairs 32 (3) 2013; 477-485. Gowrisankaran

A second paper also published in Health Affairs reviewed randomized controlled trials of workplace wellness programs. Their review raises doubts the employees with health risk factors such as obesity and tobacco use spend more money on medical care than others. They concluded that workplace wellness programs show little evidence of saving costs through health improvements without being discriminatory.  To test the assumptions of workplace wellness programs the authors, “reviewed research on the relationships among financial incentives, behavior, health status, and medical spending. We focused on randomized controlled trials involving four conditions- smoking, hypertension, high cholesterol and obesity- that are typically included in health-contingent programs. In our review, we found mixed evidence that employees with these conditions have higher health costs than other employees, which undermines the argument that employees with the conditions are particularly effective targets for incentives. We also found little evidence that working-age people change their behavior as a result of financial incentives, particularly over the long term. These findings suggest that program savings many not, in fact, derive from health improvements. Instead, they may come from making workers with health risks pay more for their health care than workers without health risks do. If true, this conclusion would jeopardize long-standing regulatory efforts, maintained in recently proposed Affordable Care Act regulations to prevent workplace wellness from being “a subterfuge for underwriting or reducing benefits based on health status. (citations omitted) Since low-income workers disproportionately suffer from conditions typically targeted by health-contingent programs, savings arising outside of health improvement may entail hidden, regressive redistributions increasing the burden imposed on low-income workers. “

In effect, they point out, wellness plans shift costs with the most vulnerable employees, those from low income groups with the most health risks probably subsidizing the healthier workers. Horwitz, JR, Kelly, BD, DiNardo, JE, Wellness Incentives in the Workplace: Cost Savings Through Cost Shifting to Unhealthy Workers, Health Affairs, 32 (3), 2013:468-476. Horwitz

The Agency for Healthcare Research and Quality (AHRQ) has issued another independent review. This time they reviewed studies of strategies to prevent weight gain in adults. The reviewers looked at 51 trials involving 555,783 subjects with at least one year of follow-up and a weight outcome. A meaningful difference between groups was considered to be 0.5 kg of weight (1.1 pound) or 1 cm of waist circumference. They found moderate evidence that workplace programs for the prevention of weight gain in adults. One study combining diet, physical activity and environmental components resulted in meaningful and statistically significant prevention of BMI change at 12 months and another that combined internet based diet and physical activity counseling resulted in significant prevention at 24 months. However, a third study found no difference. AHRQ Strategies to Prevent Weight Gain Among Adults, Comparative Effectiveness Review No. 97, AHRQ

Also cited as, Gudzune K et al Strategies to prevent weight gain in workplace and college settings: A systematic review, Prev Med. 2013 Mar 22. Gudzune

 

Christie’s Surgery Covered by Insurance

May 7th, 2013 No comments »


Governor Christie’s surgery was covered by state insurance, kind of. Here is what he said at a press conference this afternoon:

Question: [inaudible]

Governor Christie: My insurance. Yeah. The insurance that I pay for, yeah.

Question: [inaudible follow-up]

Governor Christie: No, I’m not going to price it out for you. No. No. No. Anymore than you have any right to know what Sheila pays for when she goes to the doctor, what Armando pays for when he goes to the doctor or anybody else. No, you don’t have a right to know that, that’s my personal business. That’s called HIPAA. That’s a federal statute. Familiarize yourself with it.

Question: [inaudible follow-up]

Governor Christie: Yeah. It is a procedure that is covered when you go through the steps that you need to go through by the State Health Insurance Plan that myself and my family are covered by. Yes.

 

NJ Gov Christie Has Lap-Band Surgery

May 7th, 2013 No comments »

New Jersey Governor Chris Christie has had lap-band surgery, according to a report in today’s Politico. Christie’s weight has long been an opportunity for fat-bashing humor and has been considered an obstacle to a potential Presidential run. However, Christie, who had the operation on his 50th birthday, said that he had the operation to be healthier for his wife and children.

 

Employees: Get ready for Obamacare Fat Fines

April 15th, 2013 No comments »

Here is the link to a new article in Fortune/CNN Money on employer wellness programs. I was glad to contribute a quote: “The best scientists and clinicians in the world have trouble getting these conditions (Ed: obesity, diabetes, hypertension) under control. Why do we think HR can do it?”

http://management.fortune.cnn.com/2013/04/15/coming-to-a-workplace-near-you-fines-for-being-fat/

New Study Confirms Breastfeeding Not Protective for Childhood Obesity

March 14th, 2013 1 comment »

A new study published in JAMA concludes that breastfeeding is unlikely to prevent the development of obesity in children up to 11 ½ years old. The study, involving 17, 046 breastfeeding mother-infant pairs,  contributes to the conclusion reached in an earlier posting, Breastfeeding and Obesity.

Court Bans Bloomberg’s Ban

March 11th, 2013 5 comments »

The New York Times reports that a New York State Supreme Court judge has thrown out Mayor Mike Bloomberg’s ban on large size serving cups of sugar sweetened beverages. The judge apparently concluded that the statute was ‘arbitrary and capricious’ because other high calorie drinks were not covered and not all establishments selling beverages were covered.

The Court’s opinion states, “The simple reading of the Rule is nevertheless fraught with arbitrary and capricious consequences. The simple reading of the Rule leads to the earlier acknowledged uneven enforcement even within a particular City block, much less the City as a whole. Furthermore, as previously discussed, the loophole in this Rule effectively defeat the stated purpose of the Rule. It is arbitrary and capricious because it applies to some put not all food establishments in the City, it excludes other beverages that have significantly higher concentrations of sugar sweeteners and/or calories on suspect grounds, and the loopholes inherent in the Rule, including but not limited to no limitations on re-fills, defeat and/or serve to gut the purpose of the Rule.”

These problems with the law were easily foreseeable, as I wrote in Note to Mayor Bloomberg. The judge’s opinion also appears to reflect recent decisions of the Supreme Court which are likely to limit similar, broad approaches to obesity.