New IPFW Study Finds 87% of Health Claims Lifestyle Related

FT. WAYNE, Ind., Jan. 4 /PRNewswire/ -- An Indiana University-Purdue University Fort Wayne (IPFW) study found lifestyles have a larger impact on health insurance claims than was conventionally thought. The recently completed first phase of the study found 87.5 percent of claims' costs were driven by an individual's lifestyle.

Business-school graduate students at the university studied insurance claims and accompanying health data and found a direct correlation between biomarkers, the indicators of a person's general health and well-being, and their heath care claims. The more closely those bio-markers, which include blood pressure, body mass, tobacco use and cholesterol levels, fell into acceptable guidelines, the lower the individual's health care claims.

Benicomp(R) Advantage Inc., a Fort Wayne-based supplemental health insurance provider, supplied data for the study. "We've always believed lifestyle choices had a direct impact on health care claims, but we were surprised at just how much the evidence supported that belief," said Benicomp Group president Doug Short.

"We built the Benicomp(R) Advantage on the premise that as employees are encouraged to make healthy lifestyle choices, their health insurance claims go down; employers see a resulting decrease in health care costs and employees benefit by experiencing healthier, more productive lives. In a time of escalating health insurance costs, this is a health insurance model every business should consider."

This model is also supported by the final Health Insurance Portability and Accountability Act's (HIPAA) Non-Discrimination and Wellness Program Regulations issued in December 2006. The regulation notes five conditions that must be met in order to be protected from non-discrimination rules. The Benicomp(R) Advantage meets all five.

"The new HIPAA regulations reinforce the fact that programs like Benicomp Advantage, which encourage and reward health and wellness are not only permissible, but serve as a model of how individuals can, and should, be rewarded for their choices," said Short. "Our program, which includes annual health risk assessments, biometric screenings, health coaching options and plan administration is scaleable and proven. With the Benicomp(R) Advantage, employers who wish to implement the new rules can be up and running within weeks."

The Benicomp(R) Advantage provides a turnkey solution to a once complicated problem -- employee participation in wellness programs. Employees who take personal responsibility for their health risks by not smoking, controlling weight, controlling cholesterol and controlling blood pressure can earn their way to a lower "net" deductible.

Since costs are allocated more fairly between employees with high and low utilization patterns, employers who offer this program benefit can see short- and long-term savings on health care costs.

Over 20,000 covered members are currently engaged in the program. The typical Benicomp client reports a remarkable 95% participation in this voluntary program; and, employers are achieving a first-year return on investment (ROI) of $20 - $40 per employee per month. In many cases, employers choose to invest those savings in wellness programs that offer additional benefits to their employees.

Benicomp(R) Advantage was created in 2003 and is now available in 35 states.

For more information, go to http://www.benicompadvantage.com/.