General George Patten is quoted as saying "Take calculated risks. That is quite different from being rash." Calculated risks are those we have contemplated and considered the options for managing. The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.
 
When meeting with business executives, I find many are willing to accept the consequences of a particular risk. Let's say the risk is the health of their employees. Most employers in the United States manage the risk associated with employee health by transferring the risk to a health insurance company. That's worked well for quite a while. But now, the insurance companies are transferring that risk back - in the form of higher premiums. Why is that? Insurance premiums are derived from claim experience or usage. The more we use, the more it costs - hence higher premiums. Self insured companies, on the other hand, are assuming the consequences of the risk.
 
So you may be wondering, what's driving this usage? There is no denying that we are an aging population. As we age, we consume more health care services. But what really drives health care usage is disease.
 
Health economist Ken Thorpe writes in a 2005 article "... most of this rise has been driven by a rise in treated disease prevalence, fueled by an increase in population risk factors such as obesity and by innovations in the treatment of chronic disease."[i] It is these underlying risk factors that are not only killing us, but also eroding corporate profits through increasing health care costs and lost productivity.   
 
The World Health Organization defines a risk factor as "any attribute, characteristic or exposure of an individual that increases the likelihood of developing a disease or injury." Examples of risk factors are obesity, high blood pressure, tobacco and alcohol consumption, and not using seat belts.

Chronic diseases are preventable. Diseases such as cardiovascular disease, cancer, and diabetes- are among the most prevalent, costly, and preventable of all health problems, accounting for 7 out of every 10 deaths in the United States. A Center for Health Statistics study states "Chronic diseases are mostly preventable but can be difficult to cure since the risk factors associated with developing chronic conditions are primarily linked to lifestyle behaviors." [ii] According to the Center for Disease Control and Prevention, life style behaviors and choices such as tobacco use, lack of physical activity and poor nutrition are major contributors to heart disease, diabetes, and cancer.The medical care costs of people with chronic diseases account for more than 75% of the nation's $2 trillion medical care costs.
 
Until the underlying risk factors are addressed - which are primarily addressed through behavior change - health care costs and disease prevalence will continue to rise. Are you taking calculated risks or being rash?