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Analysis Of Health Enhancement Research Organization Study (HERO)

A survey of more than 46,000 employees (at six major employers) over three years was completed by HERO in 1998 and published in The Journal of Occupational and Environment Medicine, October 1998 (www.the-hero.org  to review survey).

The survey consisted of screening for ten modifiable health risk factors.  Two of the ten were for high stress and depression.  The results are as follows:

  • 18.5% of the employees were screened as highly stressed and their medical claims averaged 43.6% higher than those without high stress.

  • 2.2% of the employees were screened as depressed and their medical claims averaged 70.2% higher than those without depression.

Combined, 20.7% of the 46,000 plus employees surveyed screened as either highly stressed or depressed, and their healthcare claims averaged 48.84% higher than the other 80% (not in this combined group).

Applying the same outcomes to a 500-employee group, the following cost-offset (increase) in medical claims cost is calculated:

  1. 500 (total employees) x .207 (20.7%) = 103 (employees in the combined group of either highly stressed or depressed)

  2. $250 (total avg. claims cost PEPM) divided by 1.4884 (to remove 48.84 % increase) = $167.97 (baseline cost)

  3. $250 (total avg. claims cost PEPM) - $167.97 (baseline cost) = $82.03 (increased PEPM)

  4. 103 (employees in the combined group) x $82.03 (increased PEPM) = $8,449 (total per month increase in claims cost as the result of stress and depression)

How much in excess claims is your group spending because of untreated stress and depression?  Plug in your own numbers using the number of employees covered under your plan and your total average claims cost PEPM.

  1.  _____ (your total employees) x .207 (20.7%) = _____ (employees in your combined group of either highly stressed or depressed)

  2. $_____ (your total avg. claims cost PEPM) divided by 1.4884 (to remove 48.84% increase) = $_____ (baseline cost)

  3. $_____ (your total avg. claims cost PEPM) - $_____ (baseline cost) = $_____ (increased PEPM)

  4. _____ (employees in your combined group) x $_____ (increased PEPM) = $_______ (your total per month increase in claims cost as the result of stress and depression) 

Now compare that to the cost of Interface’s integrated EAP/mental health care management program. It makes a lot of "cents" to address these problems proactively. 

For additional information, or a custom proposal, please contact us. 

It' s all about employees;
always has been, always will be
.

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Phone: (713) 781-3364 | Fax: (713) 784-0425
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Last Update:  02/27/07