Calculator Inputs
Formula Used
This calculator estimates the annual employer burden created by chronic disease across claims, productivity, disability, turnover, administration, and program spending.
- Estimated Cases = Total Employees × Prevalence Rate
- Daily Wage = Average Annual Salary ÷ Work Days Per Year
- Medical Claims Cost = Estimated Cases × Medical Cost Per Case
- Pharmacy Cost = Estimated Cases × Pharmacy Cost Per Case
- Absenteeism Cost = Estimated Cases × Absenteeism Days × Daily Wage
- Presenteeism Cost = Estimated Cases × Salary × Presenteeism Loss %
- Disability Cost = Estimated Cases × Disability Cost Per Case
- Turnover Cost = (Estimated Cases × Turnover %) × Salary × Replacement Cost %
- Avoidable Disease Cost = Medical + Pharmacy + Absenteeism + Presenteeism + Disability + Turnover
- Administrative Cost = (Medical + Pharmacy + Disability + Program Spend) × Administrative Overhead %
- Avoided Cost = Avoidable Disease Cost × Estimated Risk Reduction %
- Net Annual Employer Cost = Avoidable Disease Cost + Program Spend + Administrative Cost − Avoided Cost
- Projected Next-Year Cost = Net Annual Employer Cost × (1 + Inflation %)
- Program ROI = (Avoided Cost − Program Spend) ÷ Program Spend
How to Use This Calculator
- Enter the total number of employees in the covered workforce.
- Set the estimated chronic disease prevalence for that population.
- Enter salary, working days, and all direct cost assumptions.
- Add productivity loss inputs for absenteeism and presenteeism.
- Include turnover, replacement, and disability assumptions.
- Enter annual benefit program investment and administrative overhead.
- Estimate expected risk reduction from your benefits strategy.
- Click Calculate Cost to display results above the form.
- Review the graph, summary cards, and detailed cost table.
- Use the CSV or PDF buttons to export the current results.
Example Data Table
| Example Metric | Sample Value | Example Metric | Sample Value |
|---|---|---|---|
| Total Employees | 500 | Prevalence Rate | 28.00% |
| Average Annual Salary | $72,000.00 | Estimated Cases | 140.00 |
| Medical Cost Per Case | $4,600.00 | Pharmacy Cost Per Case | $1,800.00 |
| Avoidable Disease Cost | $1,907,101.54 | Avoided Cost | $228,852.18 |
| Net Annual Employer Cost | $1,851,809.35 | Projected Next-Year Cost | $1,962,917.92 |
| Cost Per Employee | $3,703.62 | Program ROI | 169.24% |
FAQs
1. What does this calculator estimate?
It estimates how chronic conditions affect employer spending through medical claims, prescriptions, lost workdays, reduced productivity, disability exposure, turnover, program costs, and expected savings from a benefit strategy.
2. Should prevalence include diagnosed employees only?
Use the rate that best matches your planning goal. Diagnosed prevalence works for current claims analysis, while broader prevalence helps estimate hidden risk and future benefit exposure.
3. How is presenteeism cost handled here?
The tool applies a percentage productivity loss to annual salary for affected employees. This converts reduced on-the-job performance into an estimated financial cost.
4. Why is turnover included in disease cost?
Chronic conditions can increase resignations, leaves, or internal replacement pressure. Hiring and onboarding new staff creates real budget impact, so turnover belongs in a full employer cost model.
5. What does estimated risk reduction mean?
It is the share of avoidable disease-related costs you expect to reduce through benefits design, care management, disease programs, coaching, medication support, or preventive strategies.
6. Can this replace actuarial or underwriting work?
No. It is a planning tool for budgeting and discussion. Final pricing, reserve setting, and health plan decisions should still use actuarial, underwriting, and claims expertise.
7. How often should inputs be updated?
Update inputs whenever salary, prevalence, benefit design, vendor pricing, or utilization changes. Quarterly or annual refreshes are common for budget planning and renewal preparation.
8. Why might ROI become negative?
ROI turns negative when projected savings are smaller than the annual program investment. That can happen if risk reduction is modest, prevalence is lower than expected, or direct program costs are high.