According to a study released by the California Public
Employees’ Retirement System (CalPERS), retirement benefits paid by the pension
fund generated $30.9 billion in economic activity during the 2013-2014 fiscal
year.
The findings come from the “CalPERS Economic Impacts in
California” report for the fiscal year ending June 30, 2014. CalPERS says the
report “highlights the vital role” pension funds play in the U.S. and global
economies.
According to Anne Stausboll, chief executive officer for
CalPERS, retirees spending their pensions returned $9.64 in economic
activity for each taxpayer dollar contributed to the system. The total economic
activity generated by CalPERS benefits payments was $30.9 billion, while CalPERS
benefit payments supported 104,974 jobs throughout California.
Investments in California accounted for $25.7 billion, or
approximately 8.5%, of the CalPERS portfolio, the organization notes.
The pension fund is often cited among the largest U.S. retirement
plans, serving more than 1.7 million members in the CalPERS retirement system.
Another 1.4 million people are served by CalPERS health benefit programs. CalPERS’
holdings stand at approximately $304 billion.
The full report on CalPERS 2013-2014 fiscal year performance
is here.
New research from the Employee Benefit Research Institute (EBRI)
finds that offering incentives to workers to promote participation in workplace
wellness programs has a big impact on the programs’ success.
For the analysis, EBRI examined 2013 patient data from a “large
Midwest employer that enhanced its incentives to encourage participation in its
wellness program.” EBRI says it found a huge increase in the share of workers taking
health risk assessments and biometric screenings, designed to identify chronic
medical conditions, once monetary incentives were offered.
Specifically, EBRI found that a financial incentive in the
form of a $20 per month premium discount increased participation in health risk
assessments by 50% among members of unions that bargained for the incentive,
and 22% among non-union members. Participation in biometric screenings went up even
more, by 55%, EBRI observes.
“While most workers say they participate in these programs
to improve their health, financial incentive are very effective at getting
workers in the door,” notes Paul Fronstin, director of EBRI’s Health Research
and Education Program and co-author of the analysis. “There is a growing body
of evidence that suggests workplace wellness programs may reduce health care
spending, but workers have to participate for the programs to work.”
EBRI finds the Patient Protection and Affordable Care Act (ACA)
created an inducement for wellness programs, allowing employers to provide
financial incentives of as much as 30% of the total cost of coverage when tied
to participation in a wellness program. Researchers also cite evidence to
suggest that adding wellness program incentives is “by far more commonplace
among employers than other health plan changes.”
NEXT: Other wellness
trends
Besides the big increase in participation in wellness
programs because of financial incentives, EBRI also found biometric screenings
led to an average increase of 0.31 annual prescription drug fills, with related
spending ticking higher by $56 per member per year. Otherwise, EBRI says, no
significant effects of participation in HRAs or biometric screenings on
utilization of health care services and spending were found.
“The largest increase in medication utilization as a result
of biometric screening was for statins, which are widely used to treat high
cholesterol,” EBRI observes. “This therapeutic class accounted for one-sixth of
the overall increase in prescription drug utilization. Second were
antidepressants, followed by ACE inhibitors (for high blood pressure), and
thyroid hormones (for hypothyroidism).”
EBRI says biometric screening also led to significantly
higher utilization of biologic response modifiers and immunosuppressants—specialty
medications are used to treat autoimmune diseases, such as rheumatoid arthritis
and multiple sclerosis.
Full results from the analysis are published under the title,
“Financial Incentives, Workplace Wellness Program Participation, and
Utilization of Health Care Services and Spending,” in the August 2015 EBRI
Issue Brief, online at www.ebri.org.