Center for Health Value Innovation Reports Achievements in Value-Based Design at Caterpillar Inc.

ST. LOUIS, Mo. & PEORIA, Ill. -- The Center for Health Value Innovation (www.vbhealth.org), the nation's premier organization dedicated to establishing value and producing evidence for sustainable health and financial improvement, announces positive employee health outcomes from its value-based design member organization, Caterpillar Inc., a Fortune 50 company and the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.

With 50,000 US employees and 150,000 covered lives in its health plans, Caterpillar reports that in 2007 its Healthy Balance initiative developed a Healthy Lifestyle Index that includes healthy Body Mass Index and diet, moderate-to-no alcohol use, no tobacco use, and regular exercise. Twelve percent of employees now meet all elements of this composite score. In Caterpillar's general employee group, the numbers demonstrate 50 percent reduction in disability days and 35 percent smoking cessation rates, even after three years.

"Our projected health care cost trend line showed an increase in direct costs of 20 percent over four years," says Mike Taylor, M.D., FACP, medical director of health promotion at Caterpillar Inc. "We wanted a targeted plan design that would identify risk early and allow us to intervene before costs skyrocketed. Our approach has paid dividends. By helping employees take an active role in their own healthcare, Caterpillar's health partnership program has progressed from trying to control spiraling healthcare costs toward improving health and productivity."

New in 2008, Caterpillar now offers on-site coaches who schedule one-on-one meetings with program participants, maintain office hours for walk-ins, deliver regularly scheduled classes, and coordinate "lunch and learns," healthy cooking demonstrations, screenings, and awareness campaigns. Telephone coaching provides further guidance for weight loss management, physical activity, stress management, and nutrition. These coaches are available for all US employees.

To address an alarming increase in diabetes among its employees, Caterpillar introduced the Lifestyles for Health program for this high-risk group.

The numbers validate the program's strengths:

* 50 percent of enrollees in diabetes management experience HbA1C reduction (7.2 as compared to average of 8.7 one year previous)

* 96 percent of enrollees measure A1C 

* 72 percent meeting Surgeon General's activity recommendations

* 98 percent taking aspirin 

Our newest initiative has been to partner with our health care system to improve the quality of health care delivered to our employees and their families. "We are transforming the way health care is delivered and paid," Taylor adds. "Our larger strategy is to initiate a completely integrated service for each Caterpillar employee, regardless of need, and move from addressing healthcare as an expense toward regarding healthcare as an investment in people. This requires that we look at more than direct medical costs and begin to factor in productivity losses resulting from heart disease, cancer or diabetes. The bottom line is that a healthy employee is a competitive business advantage."

Value-based health designs lead to lowering the healthcare cost trend in part because of less use of rescue drugs and fewer emergency room visits, as well as a reduction in disability and workers compensation claims.

According to Cyndy Nayer, president and executive director of the Center, "The Caterpillar initiative exemplifies value-based design, and employers can learn from this experience. By sharing these success metrics, the Center provides leadership and a forum for information exchange."

About The Center for Health Value Innovation

Launched in 2007, The Center for Health Value Innovation is a not-for-profit (501c3) organization representing industry stakeholders committed to sharing the evidence that value-based health designs improve health status and reduce health cost inflation. Members include large and mid-size employers, health plans, integrated delivery systems, self-funded unions, municipal and state governments, medical management firms, pharmacy benefits management companies, vendor organizations and others which benefit from analytic tools, educational programs and collaborative connections to innovators in value-based health design. Visit www.vbhealth.org.