How to leverage wearable devices to reduce health care costs

A large number of Health Plans and employers have been using a smartwatch benefit for years. They encourage members and employees to increase exercise by tracking daily steps, creating exercise challenges among friends and teams, and increasing the overall wellness of the employee.

In fact, United Healthcare recently offered a benefit of up to $1,000 annually for select employers and fully insured clients if they would share certain data elements such as steps, sleep, and activity with them as well as achieve certain goals such as 15 minutes of daily exercise.

But now employers can go one step further. When AI and machine learning are applied, it’s now possible to provide early detection of certain metabolic conditions like hypertension, diabetes, and atrial fibrillation using the data from a standard smartwatch.

The benefits of early condition detection can be substantial. The total cost of care savings for early detection of A-fib can be up to $10,355 annually. Additionally, conditions such as diabetes, hypertension, and sleep apnea can generate savings between $2,341 and $2,864 annually.

Companies are now beginning to recognize the potential benefits of integrating these devices and mobile health apps into their health benefits, not only for promoting employee wellbeing but also for reducing health care costs.

In fact, by integrating wearable devices into health plans, businesses have the ability to not only reduce health care costs but to also help combat burnout and other chronic health issues. I’ve seen for myself how this technology can aid in health education to empower positive lifestyle changes in employees and, consequently, radically shift the culture of a company as a whole.

Reducing health care costs through wearable device integration in health plans

Incorporating the use of wearable devices into employee health plans can lead to significant cost savings for both employers and employees alike. By providing employees with digital health platforms and even wearable devices themselves, companies have the opportunity to encourage employees to monitor their own health and make informed choices about their lifestyles, promoting greater wellbeing. 

With the right mobile health app, smartwatches can also give employees the option to track various health metrics such as their heart rate, sleep patterns, and physical activity levels. Certain health apps also have pre-diagnostic technology that can accurately inform users of their risk levels for specific health conditions.

Through the use of such detailed self-monitoring and proactive technology, employees can then identify potential health concerns and seek preventative care before their conditions escalate into more serious issues. All of this ultimately means greater autonomy over health and wellness and less absenteeism. And, when employees use this technology for preventative wellness, it also helps to reduce health care costs as treating a condition early on tends to require less advanced medical intervention than would be needed in later stages.

Additionally, companies can use mobile health apps and smartwatches to create incentive programs that reward employees for adopting healthier habits. Examples of these programs include participating in regular physical activity, reducing sedentary time, and maintaining a healthy weight. These incentives can be in the form of reduced insurance premiums, bonuses, or other wellness-related perks. By promoting healthier behaviors, companies can then reduce the risk of chronic diseases and other health issues, resulting in lower health care costs.

Leveraging wearables to lower insurance premiums

Fully insured companies that implement wellness programs with wearable devices can often negotiate lower insurance premiums, as insurers recognize the benefits of a healthier workforce. By demonstrating a commitment to employee health and wellness, companies can enjoy reduced insurance costs, which can contribute to overall health care cost savings.

By leveraging the power of smartwatch technology, companies can ultimately promote a culture of wellness and support a healthier, more productive workforce by encouraging employees to engage in regular physical activity, manage stress, and maintain a balanced diet. And, of course, fostering a healthier workforce means companies can expect lower absenteeism, increased productivity, and ultimately, reduced health care costs.

Using wearable technology to fight burnout and health issues

Burnout and stress-related health issues can have a significant impact on employee productivity, morale, and overall wellbeing. In fact, workplace stress is turning into an epidemic with 83% of U.S. workers suffering from it.

Those who experience chronic stress are also then prone to higher risks of developing serious heart conditions. Wearable devices can help combat these issues by allowing employees to monitor their stress levels, sleep patterns, and other vital signs that may indicate potential health problems.

By leveraging mobile health apps and smartwatch technology, employers can create targeted wellness initiatives that focus on stress management, mental health support, and proper work-life balance.

For example, some companies have introduced meditation and relaxation programs that incorporate smartwatches to monitor employee stress levels and provide feedback on the effectiveness of these initiatives. Certain mobile health apps offer step count competitions, encouraging everyone in the office to get their minimum steps in each day, which has been shown to reduce stress levels.

Any of these and similar programs can play a critical role in promoting a healthier work environment, reducing burnout, and minimizing stress-related health issues.

Encouraging a positive lifestyle through wearable technology

Mobile health apps use the wealth of data provided by smartwatches to further educate employees about their health and empower them to adopt healthier lifestyles. Companies can leverage this data to create targeted wellness programs that cater to the specific needs of their employees, such as nutrition workshops, exercise challenges, and mental health support groups.

Certain mobile health apps also have features that allow users to send their data to a doctor or to enable remote monitoring. This way, physicians can keep a close eye on employees’ vital signs and incoming data to be sure that any suggested lifestyle changes are not only adopted and adhered to, but that they’re also having the intended positive impact. Based on the continuous data, relevant and real-time changes can be made to the employee’s health plans, improving their overall health outcomes.

Related: High cost of dying can have negative impact on employee health

Wearable devices present a truly unique opportunity for companies to promote employee wellness, reduce health care costs, and foster a healthier work environment. By integrating these devices into health plans, focusing on combating burnout, and leveraging health education, employers can empower their employees to live healthier and create an overall healthier workplace culture.

David Smith is President of ilumivu, which delivers health care decision-support applications using real-time data from smartphones and standard smartwatches for health plans and employers.