Costs, Savings & Impact FAQ Where does the ROI start? How do we calculate opportunities for savings? What are some of the variables that the client can input? What are some of the variables provided as default options? How do you estimate the number of people that can be influenced or supported in making positive changes that can reduce their risks? What are the projected savings that can be reported? Where does the ROI start? Authorized program managers and executives in our client companies may be given direct access to generate a risk management profile of their organization. These reports quantify opportunities for cost savings through reduction of modifiable risks factors based on two models: Projection of potential savings in medical claims costs Projection of potential impact on productivity. How do we calculate opportunities for savings? The calculation of benefits in the Corporate Summary report uses cost data to calculate the financial impact of the high risk population to the corporation. Potential savings are estimated based on reasonable assumptions regarding the movement of high risk individuals who are ready to change into lower risk categories as a result of those changes. The calculation uses data based on the risk profile of the analysis group and either actual company costs entered by the client or values based on cited research. The standard, default values in the online reports reflect U.S.-based research. These default values can be: replaced with the employer's medical benefits costs replaced with country-specific research reflecting the local health care funding model converted to local currency. What are some of the variables for which the client can input its own corporate data? Average salary costs Extrapolation factor Minimum and maximum impact group assumptions Currency (and conversion rate, where applicable) What are some of the variables for which default values are provided? Average Medical Claims Cost Savings Average Productivity Gain / Loss. How do you estimate the number of people that can be influenced or supported in making positive changes that can reduce their risks? For each risk factor, we identify: the number of persons who are currently at moderate to high risk (called the At Risk Group) the number of the At Risk Group who are ready to make positive lifestyle changes within the next 30 days or are already working on making those changes (called the At Risk/Ready Group). Based on your estimates, optimistic and conservative, of the percentage of the At Risk/Ready group you think will succeed in moving to low risk with support from your wellness initiatives, we generate a Minimum and a Maximum Impact Group. What are the projected savings that can be reported? Total cost avoidance - the financial impact currently due to the At Risk Group and the theoretical saving if all At Risk persons could modify the factors under their control to become low risk Achievable cost savings - the cost savings associated with each of the Minimum and the Maximum impact group achieving the goal of moving to low risk These savings are projected with respect to medical claims and to productivity impact. The methodology and detail of all calculations and projections is provided in the Appendix to the Corporate Summary Report.