When employers practice prevention with its employee population, health care costs can be reduced in as little as one year, especially among those with chronic illnesses, according to a recent study from StayWell Health Management and Towers Watson.

"This is one of the first multi-employer studies to explore the specific timing of changes in health care costs related to increases or decreases in health risks," says Jessica Grossmeier, vice president of research at StayWell Health Management and a co-author of the study. "The research supports a greater focus on prevention and wellness. It also can help employers better estimate the short-term financial impact of changes in individual and population health risks."

While earlier research has connected health risks with higher health care costs and improving health can lead to positive return on investment in the long term, few studies have focused on how soon cost savings become apparent along with the relative cost impact of health risk accumulation in opposition to health risk reduction.