Fact:Cost for prevention and wellness programs are dwarfed by the cost that doing nothing contributes to overall health care costs. For example, a study by the California Center for Public Health Advocacy found that the costs of rising obesity and physical inactivity rates in the state have doubled to $41 billion in just the last six years. This is nearly equal to what the state spends on health care ($20 billion); social services ($10 billion); and corrections ($10.2 billion) combined, and slightly more to the total tab of $37 billion for K-12 education.
Fact:Keeping people healthier is one of the most effective ways to reduce health care costs, according to a study by the Trust for America’s Health and the Prevention Institute. This study reports that an investment of just $10 per person per year in proven community-based programs returned $4.80 for every $1 spent. So prevention and wellness programs are a cost-effective way of saving health care dollars and improving the health status of our population.
CalPERS is working hard to ensure the retirement and health security of our members, provide help to our employers, and manage our investments to meet our long-term liabilities. We hope this information provides education, insight, and clarity.
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