Behavioral economics related to diabetes can help employers reduce expenses, increase engagement

Employers who offer tools to help manage diabetes can reduce health care expenses as well as help workers improve their quality of life.

The cost of caring for individuals with diabetes is 2.3 times higher than non-diabetics, and more than 20% of total U.S. health care spend is attributed to people with diagnosed diabetes, according to a new report from Willis Towers Watson. Diabetic complications such as heart disease, nerve damage, vision impairment and kidney failure represent large costs to health plan sponsors and productivity loss for employers. More importantly, these complications lead to a significant decline in quality of life for diabetics.

Willis Towers Watson suggests six ways in which employers can increase engagement and improved outcomes.

Make it easy to access high-quality, affordable programs to manage or prevent diabetes. Employers can use choice architecture to make it easy for their members to participate in diabetes and metabolic syndrome programs. A single, integrated program offering that addresses multiple needs can simplify navigation.

Communicate that participation in effective management programs can help minimize losses. Behavioral economics research shows that people hate losses more than they like gains, and employers can use this loss aversion to encourage initial and persistent participation in diabetes programs. For those enrolled in diabetes management programs, consistent engagement may be supported by communications that focus on the loss that is avoided through action.

Craft communications that leverage optimism bias.  People who qualify for diabetes prevention or management programs may think they can address their health issues on their own without an employer-sponsored program or professional help. Communications can point out that even the most successful people need help at times. Employer communications also can focus on positive messaging about accomplishments and milestones.

Use stories to move people to action. Compelling statistics that demonstrate the health and cost impact of diabetes diagnoses and complications alone don’t drive substantial behavior change. People are more moved to action by powerful stories than by impressive statistics. Both employer and vendor communications can take advantage of narrative preference by using storytelling to nudge members to engage in medical management programs.

Use social networks to nudge behaviors. People want to emulate the behaviors of their friends and those whom they respect, so an employer can report on how many colleagues have been helped or currently are engaged in a program. Successful programs often have a social media element that allows participants to share their success and support, or affinity groups can help encourage ongoing participation.

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Appeal to intrinsic motivation to drive behavior change. Focus attention on the goals of individuals, which can be highly motivating. Within program design, members should be empowered to help craft their care plan and set goals in partnership with a coach or clinician.

“More member engagement in effective programs to address increases in obesity, metabolic syndrome and diabetes can lead to lower costs, less disability and increased quality of life,” the report concludes. “Investing in helping employees avoid or manage diabetes not only enhances employee wellbeing but can improve employers’ bottom lines.”