Transcript Building a sustainable wellness strategy.

Building a Sustainable
WELLNESS Strategy 2015
What is Wellness?
Wellness is an active process of
becoming aware of and making
choices towards a more successful
existence
-National Wellness Institute
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Why Wellness?
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Why Wellness?
• “Largely preventable and highly manageable chronic
diseases account for 75 cents of every dollar we
spend on health care in the U.S.”
–Kaiser Family Foundation, 2014
• CDC: Four modifiable health risks account for a
majority of chronic diseases:
- Tobacco use
- Poor eating habits
- Lack of physical activity
- Excessive alcohol consumption
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Why Wellness?
A well designed, long-term strategy…
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Improves the health, well-being &
engagement of employees (& their families)
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Enhances morale, productivity & safety
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Enhances organizational performance
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Enhances recruitment and retention
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Contains cost
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Engagement is the key to success
The following components are critical to engagement:
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A long term strategy
Executive & mid-level support
A culture that supports wellbeing
Defined accountability
Participant access
Confidentiality
An effective communication strategy
Measurable outcomes (employee & employer)
Meaningful incentives
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Case Study: The Reynolds Company
Who are we?
• Supplier of electrical, industrial automation,
switchgear, lighting and datacom products
• Multiple locations in Texas and Louisiana
• Professional and warehouse staff
• Non-unionized
• Low turnover
• Average age: Female 40; Male 37
• 26% Female; 74% Male
• All employees have internet access
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Case Study: The Reynolds Company
Our Journey…
Provider
Humana
Year
2007
Insured
Employees
Population
Eligible
Incentive
Strategy
Participation
279
$250
drawing
Principal Wellness
Company (PWC)
2008
2009
All Employees
349
349
2010
64%
47%
2011
Viverae
2013
Insured Employees
263
$300
$75/quarter
H.R.A
up to $350/yr
H.R.A or H.S.A
or H.S.A
in gift cards
contribution
contribution
Heath
Health
Assessment,
Health
Assessment Screening &
Assessment
& Screening Coaching or
Activities
23%
United Healthcare (UHC)
2014
All Employees
256
380
417
SAME as 2010;
+$600/yr
medical
premium
incentive
$600/yr
medical premium
incentive
$600/yr
medical premium
incentive
Health
Assessment &
Coaching
Health
Assessment,
Screening &
Coaching
45%
58%
Health
Health Assessment,
Assessment,
Screening &
Screening &
Outcomes or
Coaching/Activities
Alternative
(Wellness Score)
Standards
42%
36%
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Case Study: The Reynolds Company
What we learned:
The importance of maintaining a consistent program/platform
and selecting one, long-term vendor partner
Implications :
• Risk classifications and measurements of success differ
- Measuring program success at the employer and
participant level difficult
- Leadership support suffers
• Program access, components and relationships (health
coaching) change
- Engagement and culture suffers
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Case Study: The Reynolds Company
Successes
• The data:
- Average number of risk factors decreased 4%¹
- High/very high risk blood pressure decreased 43%¹
- Compliance of annual physicals, well-women exams,
mammograms and prostate exams increased¹
- While the number of claimants with musculoskeletal
claims increased 28%, the total spend decreased 47%²
• Employee feedback and individual achievements
1. 2013-2014 Viverae cohort data: 115 participants
2. 2012-2014 United Healthcare claims: Utilization by Diagnosis
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Impact of Health Care Reform
• Provisions for preventive care coverage and treatment
• HIPAA non-discrimination testing
- Increased incentives for a health-contingent
programs:
Wellness: up to 30%
Tobacco: up to 50%
- Tobacco use declaration (3 options)
- Alternative standard:
Upon completion the participant must receive the same total
reward during the plan year
• Affordability testing
These statements are not intended to
serve as legal advice and nothing
contained in this presentation should be
considered legal advice.
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Compliance
These statements are not intended to
serve as legal advice and nothing
contained in this presentation should be
considered legal advice.
Until we receive formal guidance from the EEOC:
• Promote a program that is reasonably designed to promote good health
and prevent disease
• Communicate the program and incentives as a benefit
• Allow participants to qualify for the incentive at least once per plan year
• Offer a program that is available to all “similarly situated individuals” &
communicate the availability of an alternative standard on all collateral
• If insured spouses are eligible, they should complete their own “steps”
• Limit your incentive(s) to 30% (or less)or 50% if the program is designed to
address tobacco use.
• Non-wellness participant premium must satisfy affordability testing
• Ensure participant confidentiality
• Use aggregate reporting to promote health and prevent disease
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Questions
Leah T. Scoggins, MS
Higginbotham
Wellness & Health Risk Management Practice Leader
Kim Wilborn-Haygood, PHR
The Reynolds Company
Director of Human Resources