Employers Examine Predictive Models to Cut Health Care Costs
Posted: Fri, 7 March 2008 13:25 CDT

When it comes to rising health care costs, it's no secret that employers find themselves weighing various approaches in an effort to reduce costs. Predictive modeling is one concept that is rapidly gaining ground in the health care debate.

Predictive modeling involves providing a risk assessment and adjustment process to the employee population. By determining whether or not the workforce is susceptible to contracting particular illnesses or chronic diseases, employers can better predict future medical costs. This may also help employers determine the health and wellness programs that would best suit their needs.

Employers benefit from understanding their employee population, and predictive modeling is a key to improving health care quality and productivity.

Essential predictive modeling principles include:
A focus on total population and addressing the entire health care continuum
Emphasizing long-term behavior change
Supporting health plan designs with strong communication and incentives
Creating data-driven programs tailored to individual risk, health status and learning

To create these programs, experts urge employers to use health risk assessment surveys, which give a snapshot of their employees' overall health status.