Managing Chronic Disease and Health Benefit Costs
Chronic disease is a major talking point when people reach out to us to discuss benefit options for their companies. Chronic diseases kill 36 million people every year and are the leading cause of death globally. So, it makes complete sense companies want to discuss it.
We wanted to help shine a light on chronic disease, what it means for your benefits and how to help employees who are facing a chronic disease diagnosis or managing their treatment and conditions. Let’s get started.
Chronic Disease in Canada
Chronic diseases are defined as conditions that last one year or more and require ongoing medical treatment. They also are known to limit activities. Common chronic diseases include Alzheimer’s, arthritis, asthma, cancer, diabetes, ALS, obesity, heart disease and eating disorders.
In Canada, 67% of all deaths every year are caused by four major chronic diseases:
- Heart disease
- Cancer
- Chronic lung disease
- Diabetes
You may not be aware of employees facing a chronic disease. 3 out of 5 Canadians who are 20 years of age and older have a chronic disease. And, 4 out of 5 people are at risk of being diagnosed with one. Those numbers show how prevalent these diseases are in Canada and how important it is to discuss wellness with your employees to help those numbers go down.
What does chronic disease cost companies?
Chronic disease costs Canadians a lot of money. In 2000, six major chronic diseases represented over $31 billion in direct healthcare costs and over $64 billion in lost productivity. Last year, according to Sarah Lussier Hoskyn, senior analyst, regulatory affairs and market access at Innovative Medicines Canada, the economic burden of chronic disease in Canada has most likely surpassed $200 billion. The World Health Organization estimates that 80% of all heart disease, stroke, type 2 diabetes and over 40% of cancers could be prevented if we would eat healthier, exercise more and stop using tobacco.
Globally, the projected impact of chronic disease over the next two decades is $47 trillion. So, how do Canadians save their money and lower their risk of chronic disease? Focus on your wellness now instead of paying for your sickness later.
Common risk factors
There are four key lifestyle risks for chronic disease. These four lifestyle choices will increase the chances of being diagnosed with a chronic disease.
- Poor nutrition
- Lack of physical activity
- Tobacco/Nicotine use
- Excessive alcohol use
Overweight/Obesity
- 1 in 3 children and youth are overweight
- Over 1 in 4 adults are obese
Unhealthy eating
- 3 in 5 people are not eating enough fruits and vegetables daily
Physical Inactivity
- 1 in 2 adults are not physically active in their leisure time
- 9 in 10 children do not meet Canada’s physical activity guidelines
Smoking
- An estimated 45,000 Canadians die each year as a result of smoking.
- Countless others live with diseases, such as lung disease.
- Approximately 15% of Canadians currently smoke.
- 34% of students in grades 7-12 have tried a vaping product (i.e. e-cigarette) and 20% reported using them within the last 30 days
Alcohol
- 1 in 7 people, aged 15 and older, exceed low-risk drinking guidelines
Decreasing the chance of chronic disease
With these numbers in mind, you may be wondering how to decrease your chances of being diagnosed and how to lessen that for your employees as well.
The best news is that there are a number of things that will help decrease those odds.
The biggest thing that you can do for yourself and your employees is to invest in health and wellness. Focus on creating a routine and adding the following things into your everyday life:
- Healthy eating with whole foods
- Exercising and moving your body daily
- Remove any tobacco use
When you focus on these three things, you are reducing the chances of heart disease, stroke, type 2 diabetes and cancer. It also reduces the total cost to your benefits plan through lower claims, lower absenteeism and better employee health!
How much does this cost your business?
The first thing you have to do is find out how much chronic diseases are costing the company. Did you know that we can help with that? We can discuss the costs and how to monitor extended health claims and trends. Then, we can ensure that your advisor is helping your business by utilizing the tools and programs in place to help employees with health diagnoses cost-effectively.
When you put the focus on wellness for your employees, you’re lowering the costs of future benefit costs and claims. Reach out to us today and let’s see how much chronic disease is costing you and what we can do about that.
Interested in learning more?
At Navy & Sage, we’re more than just benefits advisors. If you or your team members want more support on managing chronic diseases or the impact that they have on your benefits plan, reach out to us today.
