Study shows company’s earliest employer clients earned nearly a 3:1 return on investment after just two years using RedBrick’s health engagement platform
MINNEAPOLIS--(BUSINESS WIRE)-- Investing in employee health pays off, according to the results of a retrospective savings study conducted by RedBrick Health, a leader in consumer-focused health engagement technology and services. The RedBrick Health ROI study measured the impact of the company’s innovative, integrated approach to driving and rewarding employee health engagement over a two-year study period.
Study results show RedBrick Health programs generated $443 in total savings per participant per year (PPPY) – $275 and $168 PPPY in health care cost and workforce productivity savings, respectively. The study found employers experienced a nearly 3:1 return on investment comparing total program benefits to program costs after just two years. Past industry research has found such results typically take three years or more to materialize.
The statistical analysis was conducted by a research associate from the University of Minnesota using methodology recommended by health services researchers at the university’s School of Public Health.
Previous RedBrick Health research found the company’s health engagement platform achieves engagement rates exceeding industry norms by two to five times depending on program category. In addition, RedBrick Health programs have reduced the number of individuals “at risk” across multiple categories – such as cholesterol, body mass index, nutrition and physical activity – by as much as 33 percent year-over-year.
“This study confirms our programs reduce costs and, when tied to our exceptional engagement rates, generate substantial savings,” said Kyle Rolfing, chief executive officer of RedBrick Health. “It suggests an employer with 10,000 eligible employees achieving typical RedBrick engagement rates would experience nearly $2 million in annual savings over the first two years of the program.”
“In addition, our clients have achieved even greater savings through RedBrick Health’s behavior-based financial modeling. Our tool helps employers fairly determine each employee’s share of health care costs based on their level of engagement in their health,” added Rolfing.
RedBrick Health-powered programs are a financial “win” for employees as well – returning an average of $113 per year in Health EarningsSM to individuals who actively engage in healthy activities over the course of the year. This unique approach to rewarding active health engagement helps improve accountability and fairness with respect to the financing of health benefits within the employer setting.
About the Study
The retrospective, quasi-experimental study was based on design methods recommended by researchers at the University of Minnesota School of Public Health and included all enrolled employees who participated in RedBrick Health employer-based programs from 2008-2009. Medical and pharmacy claims data for two years pre- and two years post-RedBrick Health program launch were analyzed. All employers included in the study offered incentives for participation, ranging from $240 to $375. A participant was defined as anyone who participated in at least one of the following actions: health risk assessment, health screening, or online and/or telephonic coaching programs. Employee productivity savings were estimated using the change in health risk assessment-based health score. To learn more about the analytic methods used to calculate the presented cost savings, please email [email protected].
About RedBrick Health
RedBrick Health is a health technology company that drives sustained engagement in health improvement programs through constant innovation and deep consumer insight. The company's health engagement platform blends a fresh, personalized consumer experience, impactful social networking tools and rewards that link individual financing to healthy behaviors. As a result, RedBrick Health delivers employers engagement rates far exceeding industry norms and the ability to fairly and responsibly control costs through increased employee accountability. Founded in 2006 and headquartered in Minneapolis, RedBrick Health serves large, self-insured employers and strategic distribution partners. Visit RedBrick Health at redbrickhealth.com, read more at healthinnovationblog.com or follow the company at twitter.com/redbrickhealth.
RedBrick Health, RedBrick, health, innovation, employee benefits, health care benefits, wellness, prevention, employee wellness, wellness incentives, health care financing, behavioral economics, ROI, return on investment, cost savings, workforce productivity, Health Earnings, Kyle Rolfing, Minneapolis
Haberman (for RedBrick Health)
Toccara Torres, 612-372-6451
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