HealthScore
The Credit Score for your Life
Our Team:
• Chris Holmblad
• Gabe Polk
• Matt Nishiguchi
• Anatoly Shcherbatko
• Brandon Segura
Some Alarming Statistics
• Rates of chronic disease are higher in the
U.S. than in any other country—nearly half
(45%) of Americans suffer from at least one
chronic disease1
Some Alarming Statistics..
• Chronic diseases, such as heart disease,
diabetes, pulmonary disease, and cancer, are
among the most costly and preventable
diseases in the United States2,3
Chronic Disease Quadrangle
Some Alarming Statistics…
• Three out of every four health care dollars are
spent treating chronic disease and seven out
of ten deaths are caused by chronic disease4
~ 75%
Some Alarming Statistics.…
• At least one third of deaths in the United
States are attributable to a handful of
unhealthy behaviors: smoking, poor
nutrition, and lack of physical activity.5
Some Alarming Statistics.….
• A study by the Milken Institute found that, if the
U.S. can make modest improvements in
prevention and management of disease by 2023,
we could avoid 40 million cases of chronic
disease and save $218 billion annually in
treatment costs6
Avoidable Treatment Costs and Productivity
Losses, 2023
Opportunity
Workers
• The recession has caused a lot
of stress for workers, and
some have seen their healthy
habits go right out the
window as a result. A recent
survey from ZoneDiet.com
found that 25 percent of
Americans are turning to
comfort food more because
of the economy.
Survey
• A survey of about 500 human resources and
benefit executives by professional services firm
Towers Perrin found:
• 50 percent of companies have or will introduce or
increase investments in wellness and health
promotion in 2009 and 2010.
• 32 percent have or will introduce or increase
financial incentives, such as bonuses or premium
discounts, for wellness or health promotion activities
in 2009 and 2010. Another 30 percent are
considering this action.
• 45 percent say they are considering introducing or
increasing penalties for nonparticipation in wellness
or health promotion activities.
Case Study
• Financial services firm USAA has been
running a wellness program for five years.
• “We think 50 to 80 percent of our medical
costs are related to people who are
overweight,” says Dr. Peter Wald,
enterprise medical director for the firm,
which has 20,000 employees.
Employee Opportunity
• Direct Benefit = Discount
• Healthier employees are
happier
• Happier Employees are more productive
• Cutting down on the huge amounts of
unproductive workers
Company Opportunity
• The median health care expense per employee last
year was $7,173, according to a recent survey by
Watson Wyatt and the National Business Group
on Health.
• But companies save from $1.49 to $4.91 in health-
related expenses for every dollar spent on wellness
programs, according to the U.S. Department of
Health and Human Services.
• Healthier employees are more
productive
• Company pays collectively less for
more healthier employees
Insurance Company
• Healthier clients equates to
lower liability
• Saves money in the long run by
decreasing probability of
chronic diseases
• Companies are rapidly losing
customers as prices increase
How it all works:
A Company Lab Receive Data Discounted
• Working • Employees get • Create a score Premiums
together, we tested at an using our • The employees
create a tiered accredited standardized get discounted
insurance facility or pay analysis insurance
structure with the un- • Create premiums
the health discounted aggregated based upon
insurance premium company individual
company health data score
Continual Employee Health Improvement
How it all works:
• Lab Testing
▫ BMI, Blood, and Urine
• Website:
▫ Personal score &
main reasons why
▫ Overall company
health score (if they allow it)
2 Data Sets
• Individual Healthscore (1-100) – disclosed only
to the individual and health insurer
▫ 85+ means a 20% discount
▫ 70-85 means a 15% discount
▫ 60-70 means a 10% discount
▫ 60 or below means a 5% discount
• Non-identifying Overall Company Info
▫ % of Smokers, % of Obese, Etc.
▫ If improvement, less overall insurance rate
Product Promise
• Align individual health with financial incentives
• Motivate good, healthy behavior
• Immediate deterrents to unhealthy lifestyle
choices
• Saves everyone money
How We’re Disruptive
• Standardization
▫ Consistent scoring no matter the insurer or
company
▫ More in-depth & accurate
• Based on individual as opposed to the company
pool
• Based on results rather than enrollment
• Creating awareness
Business Model
Target Customer
Target Consumer
Costs
Generating Income
Competition Analysis
Feasibility
Customer, Consumer Analysis
Target Customer
– Companies
Target User
– Companies
– Consumer
– Insurance Companies
Income and Costs
How to generate income
– Charging a flat fee
•Annual charge
Main Costs
– Accreditation
– Website
– Data Storage
▫
Competitor Analysis
New Sector?
Possible Competitors
bioIQ
Ingenix
Safeway
Replicators
Feasibility
Similar Industries but different
Who bears the initial costs?
Do they gain any benefits?
We are creating the standard in this field rather
than fighting it.
Potential Risks
• Legal Issues & Regulations
• Testing
• Courting Health Insurers
Legal Issues & Regulation
• Unforeseen legal hurdles
▫ Staggered provisions, government
mandates
• Healthcare industry regulation is in state of
flux
▫ Difficult to anticipate future regulation that
could harm business
• Data Privacy/Sensitivity
▫ Moral and legal issues regarding client data
Testing
• Consistency:
▫ Tests for one person cannot differ from
clinic to clinic
• Accuracy:
▫ There is a correlation between BMI and
overall health however…
• Accessibility:
▫ Not enough testing facilities
• Fraud:
▫ People cheating test(s)
Courting Health Insurers
• Health Insurers might not be onboard
▫ Resist disruption/standardization
Questions?
References
• [1] Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009
Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and
Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight
Chronic Disease. 2009. Available at:
http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf
• [2] Centers for Disease Control. “Chronic Disease Overview” [Fact Sheet].
March 2008. Available at: http://www.cdc.gov/nccdphp/overview.htm
• [3] Woolf, SH. “The Big Answer: Rediscovering Prevention at a Time of
Crisis in Health Care.” Harvard Health Policy Review, 7(2): 5-20. Fall 2006.
• [4] Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009
Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and
Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight
Chronic Disease. 2009. Available at:
http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf
• [5] Mokdad AH, Marks JS, Stroup DF, and Gerberding JL. “Actual Causes
of Death in the United States, 2000,” JAMA, 291: 1238-1245. 2004.
• [6] DeVol R, Bedroussian A, et al. “An Unhealthy America: The Economic
Burden of Chronic Disease.” Santa Monica, CA: The Milken Institute.
October 2007. Available at:
http://www.milkeninstitute.org/pdf/ES_ResearchFindings.pdf
