Prevention and Wellness Programs: Are We There Yet?
Report Summary
Prevention and Wellness Programs: Are We There Yet?
Low customer awareness and a lack of clear incentives have resulted in lackluster customer engagement in U.S. prevention and wellness programs.
Boston, November 1, 2011 – A new report from Aite Group analyzes the main drivers currently fueling the growth of prevention and wellness programs in the United States. Based on more than 15 Aite Group conversations with industry participants at health plans, solution plans, and third-party prevention and wellness programs, completed from August through October 2011, the report details target areas for and discusses the advantages of prevention and wellness programs, and makes the case for higher consumer engagement in prevention and wellness.
Of the US$2.4 trillion that the United States spends on healthcare each year, only 4 cents out of every dollar is invested in prevention and wellness; a reduction of the overall cost of healthcare and healthcare spending is clearly needed. The Obama administration has emphasized the importance of prevention and wellness programs via the Patient Protection and Affordability Care Act (PPACA), passed in March 2010. While low customer awareness and a lack of clear incentives have resulted in lackluster customer engagement, the PPACA aims to increase consumer participation in these programs and raise the level of investment by health plans, solution vendors, and employers.
“Prevention and wellness programs remain driven by employers rather than consumers,” says Kunal Pandya, senior analyst with Aite Group and author of this report. “In the near term, employers’ involvement in paying for healthcare will allow them more bargaining power in the implementation of prevention and wellness programs. Over time, however, the programs will become more consumer-driven.”
This 17-page Impact Note contains three figures. Clients of Aite Group’s Health Insurance service can download the report.