REPORT. PIHCsnohomish.org/WorkWell

Transcription

1 2016 REPORT PIHCsohomish.org/WorkWell

2 Sohomish Couty Employers The Full Cost of Health Ecoomic Burde ad Impacts Report for Sohomish Couty Employers is a first-of-its-kid report producig a ever-before-see sapshot of a more complete impact of health-related costs, ot just health beefits, o Sohomish Couty employers ad the overall ecoomy. This was a collaborative effort betwee Providece Istitute for a Healthier Commuity (PIHC), Commuity Attributes Ic. (CAI) ad the Itegrated Beefits Istitute (IBI) to develop ad uderstad the full costs of health across Sohomish Couty, as well as the costs for idividual employers. The report foud that Sohomish Couty employers are spedig $1.4 billio for employee medical beefits--ad early $1 billio more i abseces ad lost productivity. Altogether, Sohomish Couty employers lost just uder 2.5 millio workdays due to illess i equivalet to about 10,000 worker-years aually. Research idicates that just a 10% reductio i the cost of lost workdays (less tha 1 day per worker, per year) could add early 700 ew jobs ad hudreds of millios i added labor icome ad ecoomic output across the state. METHODS Usig Sohomish Couty idustry data provided by CAI, IBI estimated the full costs of health usig their custom model. Additioally, IBI produced reports for 15 progressive employers i Sohomish Couty, five of whom are profiled here. IBI s model estimates the full cost of health to employers through three compoets: Abseteeism - calculated by usig a percetage of average daily wage for each absece. Preseteeism - estimated by applyig custom evaluatios of work performace for employees with ad without differet chroic coditios. This is based o proprietary survey data. Healthcare Costs - estimated based o data provided by the employer o the costs of health beefits whe available ad IBI s aalysis of iformatio from the Agecy for Healthcare Research ad Quality (AHRQ) ad the Kaiser Family Foudatio (KFF). ASSESSING THE EMPLOYER TRUE COST OF HEALTH The average employer cotributio towards healthcare beefits characterizes the more visible costs of health to a idustry as beefits are a kow ad measured cost for most employers. However, medical treatmet costs oly make up a fractio of the total cost of health for employers whe cosiderig the combied impacts of abseteeism ad preseteeism. I 2013, the average employer cotributio towards health beefits per perso across all idustries i Washigto was $496 per moth. I 2014, health cost Sohomish Couty employers $2.3 billio through: Wage Replacemets - geerated by the cost of employee absece from work. Lost Productivity - from employee abseteeism ad preseteeism, but ot log-term disability. Healthcare costs - icludig group health ad worker s compesatio. Sohomish Couty lost the equivalet of just uder 2.5 millio work days to illess. Commuity Trasit provides local ad commuter public trasportatio services to both rural ad urba Sohomish Couty residets. Headquarters: Everett, WA Employees: 623 Idustry: Trasportatio Aual Reveue (2014): $128 millio EBITDA (2014): $25 millio Net Icome (2014): $10 millio Havig healthy employees is key to achievig Commuity Trasit s goals of providig safe ad reliable service, coectig people, buildig commuities, ad beig good caretakers of public resources.

3 Sohomish Couty Employers CHART: Sohomish Couty Health Costs by Idustry ad Type for Sohomish Couty for 2014 (dollar values i millios) Ecoomic Alliace Sohomish Couty is committed to growig ad urturig a vital regioal ecoomy that is globally competitive. MEASURING THE ECONOMIC IMPACTS Sohomish Couty lost a average of $1,200 i reveue per lost workday i Gross Domestic Product (GDP) Gross Domestic Product (GDP) is a metric of ecoomic productivity, so assessig how lost workdays affect GDP gives valuable isight ito how idustry productivity could improve by lighteig the burde ad costs of health. I 2014, Sohomish Couty lost a average of $825 i GDP for each lost work day due to illess. GDP per employee i Sohomish Couty is approximately $215,341. O average, 261 days of lost work equal oe employee worth of GDP. The ecoomic burde of health costs is cocetrated i the area betwee Everett ad Moutlake Terrace, with sigificat hotspots aroud the couty i Smokey Poit, Stawood, Marysville, Moroe, ad Sohomish. Headquarters: Everett, WA Employees: 12 Idustry: Ecoomic Developmet Aual Reveue (2014): $1,865,029 EBITDA (2014): $1,865,654 Net Icome (2014): $150,456 Better workplace health makes more attractive employers, improves busiess performace, icreases reveues ad profits, create jobs ad builds a stroger, more competitive local ecoomy.

4 Sohomish Couty Employers CHART: Sohomish Couty GDP Lost Per Workday By Idustry i 2014 With its 49 ewspaper titles, Soud Publishig is the largest commuity media orgaizatio i Washigto State. Taxable Retail Sales Taxable retail sales are a importat metric for reveue i the Wholesale ad Retail sectors. For this reaso, the costs of lost work days to taxable retail sales is a valuable method to measure the cost burde due to health i these two sectors. For Wholesale, the cost of lost work days to taxable retail sales totaled 3.7% i The costs per lost workday were $389. For Retail, the cost of lost work days to taxable retail sales totaled 0.7%. The costs per lost workday were higher tha for Wholesale: $538. This is a result of the higher relative taxable retail sales per employee i Retail compared to Wholesale. CHART: Sohomish Couty Lost Workday Costs to Taxable Retail Sales i 2013 Headquarters: Everett, WA Employees i Sohomish Couty: 197 Idustry: Publishig & Commercial Pritig We believe that good health is critical to our employees success ad happiess. We feel that there is a direct correlatio betwee employee health ad compay success.

5 Sohomish Couty Employers COSTS OF LOST WORK BY LOCATION The health costs of lost work i Sohomish Couty are primarily focused aroud the regio s employmet ceters. Cesus tracts with higher employmet per acre ad employmet compositio weighted toward idustries with higher health costs of lost work, such as maufacturig, have higher health costs of lost work per acre tha average. The Mukilteo-Everett area has some of the highest costs of lost work per acre. Paie Field, a PSRC-desigated Maufacturig ad Idustrial Ceter betwee Everett ad Mukilteo, is oe of Boeig s largest airport maufacturig sites. With more tha 40,000 employees at the factory, Boeig is a sigificat driver of the regioal ecoomy. Because health costs i Maufacturig are high, the regio has higher health costs. The area aroud Arligto ad Smokey Poit is the site of a proposed ew Maufacturig ad Idustrial Ceter. The area is a importat employmet ceter ad locatio of more tha 1,000 maufacturig workers. The Moroe area has a high cocetratio of workers i the retail ad services idustries. While retail sees relatively low costs due to lost work, service idustries typically see higher costs of lost work. Combied with high employmet cocetratio, the Moroe area is oe of the couty s hotspots of health costs of lost work per acre. CHART: Health Costs of Lost Workdays Per Acre Diamod Kot Craft Brewig operates a locally owed brewery ad restaurats i Sohomish Couty. Headquarters: Mukilteo, WA Locatios Served: Mukilteo ad Moutlake Terrace Employees: 125 Idustry: Accommodatio ad Restaurats It has always bee a goal of ours to provide health care to our employees because it is a great beefit ad the right thig to do. We have bee offerig beefits sice 2012.

6 Sohomish CoutyEmployers MOVING FORWARD: THE IMPACTS OF REDUCING WORKPLACE HEALTH COSTS Research idicates that approximately 25% of total healthcare expeditures are associated with modifiable risk factors like stress, tobacco use, beig overweight ad lackig exercise. The ecoomic impacts of a reductio i lost work days would be sigificat: health cost savigs are ijected ito the ecoomy like ay other ew source of icome, geeratig iter-idustry purchases ad wage expeditures. Coutywide Ecoomic Impacts I Sohomish Couty, the total estimated ecoomic impact of a 25% reductio i omedical costs of lost work days (about 2 days per worker per year) would be $326.5 millio ad 1,620 ew jobs. This icludes: Direct output impacts: $219 millio Reveue gaied as a result of reducig the costs of health Idirect output impacts: $31.6 millio Impacts due to iter-idustry spedig related to direct output Iduced output impacts: $75.9 millio Impacts of the spedig of wages paid from direct ad idirect output Statewide Ecoomic Impact These ecoomic impacts are liked to total state fiscal impacts of $4.1 millio, of which: $2.3 millio is sales taxes $1.5 millio of which Busiess & Occupatio taxes $0.3 millio is other taxes CHART: Ecoomic ad Fiscal Impacts of a 25% Reductio i the Costs of Health Due to Lost Workdays (dollar values i millios) is Workforce Sohomish helps jobseekers fid jobs, traiig opportuities ad careers ad helps employers fid people. Headquarters: Everett, WA Employees: 25 Idustry: Other Services Aual Reveue (2014): $8,149,622 CONCLUSION Providece Istitute for a Healthier Commuity collaborated o the Full Cost of Health Ecoomic Burde ad Impacts Report for Sohomish Couty to icrease public awareess about the total impact of all health costs amog local employers, ad is developig strategies i partership with the Ecoomic Alliace of Sohomish Couty ad local employers to reduce these costs through improvig the health of employees throughout the couty. To read the full report ad lear more about PIHC s efforts to improve workplace health, visit: pihcsohomish.org/workwell. Workplace health is a vital compoet for ay job seeker ad employer i order to esure a cotiuous ad stable workforce system.