Transforming Society Workplace Wellness Programs IRF EDUCATION DAY

Transforming Society: Workplace Wellness Programs IRF EDUCATION DAY OCTOBER 4, 2011

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State of Wellness in US

MORE ON HEALTHCARE THAN COFFEE

US Ranks # 1 per capital health spending # . 36 life expectancy # 39 infant mortality # 43/42 adult mortality We’re #1!

The US Standard

We have met the enemy… “IF 70% OF CHRONIC DISEASES ARE DIRECTLY RELATED TO LIFESTYLE CHOICES, THEN WE’VE GOT TO…ADDRESSES THE 20% OF THE POPULATION THAT DRIVES 80% OF HEALTHCARE COSTS”

Major Health Risks

• Since 1950, Healthcare costs increased 247 times! • Healthcare spending = 17. 6% GDP • “ 25 by 25” Personal and Financial Crisis!

Wellness Programs – Overview

Wellness Programs wellness initiatives workplace wellness Allow organizations to Programs designed to be proactive in preventing illness and promoting healthier lifestyles for employees improve the health and well-being of employees (and their families) to enhance organizational performance and reduce costs

• Behaviors and health risk factors • Reduce chronic illness • Provide continuum of support Wellness Program Focus

Awareness / Education Health Risk Assessments Activity and Weight Mgmt Behavior Modification Wellness Program Elements

Wellness Program Rationale Source: American Institute for Preventive Medicine

Effective Wellness Program Design Culture of wellness Employee engagement Executive example Individual and participation Options Vendor management Long term view Measurement Communications & Verification education Confidentiality of data Legality Incentives & Rewards Baseline data

Wellness Incentives – Overview

HIPAA • No Discrimination • 20% Cap on Attainment Incentives PPACA • Attainment incentives up to 50% of coverage cost Wellness Legislation

“Changing behaviors is the most significant challenge…” Non Cash awards increased voluntary participation by 64%! Incentives to the Rescue!

National Business Group on Health “The best way to help employees without turning them off is to use positive incentives, not negative, and give lots of options. ” (Helen Darling, President of the National Business Group on Health, Safety & Health Magazine, June 2005 )

Can’t obtain participation goals without incentives – Watson Wyatt For 50% HRA Participation: $50 incentive Incentives Are Crucial

Incentive Thresholds Participation increases 7% for each $100 increase in incentive value. For 60% participation in broad wellness programs: invest $356 For 60% participation in HRA completion: invest $163

How Incentives Used 89 % of corporate wellness programs offer incentives: Merchandise and gift cards (53%) Promotional items (44%) Pre-tax cash in HSA or FSA account (32%) Health plan premium discount or credit (32%) Mandatory HRA to participate in benefits (15%) Michael Nadeau, President and Chief Executive Officer, Viverae

40% 35% 30% 25% 20% Spring '07 15% Spring '08 10% 5% nd ch a er M sh /B on us is e es s ct Ca em iu m Pr od u ift Ca rd s 0% Pr Survey of NAM and ERC Membership 45% G Change in Incentive Usage

So what? How wellness can impact your (business) health!

Next Steps Workplace Wellness Study provides comprehensive resource Lead by example (your wellness program? ) Umbrella recognition program - include wellness Employee engagement – recognition and wellness key elements Travel, merchandise, cards, and premiums as usual, drive results!

What Comes Next?

Give us “The One Big Thing” 31