Health and Wellness in a Time of Healthcare Reform

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Healthy Employees are Important to the Health of Your Business

Wellness DefinedA process of being aware of and actively working toward better health.

AwarenessIf people are going to get healthy, then they need to have a precise understanding of their current health status.

Action“Act as if what you do makes a difference.

It does.”

Healthy employees are more productive and

have lower healthcare costs.

That’s important because healthy employees can

mean a “healthy” bottom line for your

business.

Why Wellness Now?

Question 1

(*BMI 30, or about 30 lbs. overweight for 5’4” person)

1990

No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%

1999

2010

Obesity Trends Among U.S. Adults

BRFSS

Visible Cost

Non-Visible Cost

Direct Medical CostsMedicalPharmaceutical

Indirect CostsPresenteeismShort-term DisabilityLong-term DisabilityAbsenteeismWorkers Compensation

Iceberg Phenomenon

Pay me now, or pay me later

$85 OR $85,000

Why Wellnessat the Worksite?

Question 2

Reason #1-

Leisure and Sports

2.611%

Caring for others1.35%

Eating / Drinking1.15%

Household activities

1.15% Other

1.56%

Sleeping7.7

32%

Working 8.736%

Source: Bureau of Labor Statistics

Average Hours per Work Week Spent at Work

With the majority of Americans spending more of their waking hours at work, what better place to start than with worksite wellness.

The typical U.S. adult over the age of 18 has seven (7) chronic health conditions.

Reason # 2Healthy employees are more productive and have lower healthcare costs. That’s important because healthy employees can mean a “healthy” bottom line for your business.

Portion of Healthcare Dollars Spending on

Wellness<10%

Wellness

90+%

High Indirect Costs

Direct

Indirect

Total Value of Health

2010 - Most Common Ways Employers Manage Healthcare

Trends

Source: ERC Healthcare and Wellness Practices Survey

51%56% 58% 60%

0%

10%20%30%40%50%60%

70%

Increase coststo employees

Change plandesigns

Utilize wellnessprograms

Employeeeducation

2010 Wellness Trends

Source: ERC Healthcare and Wellness Practices Survey

9%

24%

59% 57%

68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Chargetobaccousers

Plan toimplement

somewellnessactivities

Havewellness

activities inplace

Haveincentivesin place

Unsure ifwellnessreduces

costs

Average of $14/month

Be a Champion of Health & Wellness

Step One:

Inform Your Management

Define Management’s Role

Train Management

Healthy Workplace Tour & Culture Assessment

Activity level Nutrition habits Campus layout

Health Risk Assessment Personal Wellness Profile Health Screenings Healthy You! visit

Assess Your CultureChange Your Culture – Make it Healthy

Step Two:

Program Services: 3 fully-covered physician visits for counselingPrescribed nicotine replacement therapy / medicationBCBSMS Quitline90-day coverage

Change Your CultureBe Tobacco-free

Program Results:

Blue Cross & Blue Shield of Mississippi “be smoke-free”

Program

Program Results:

Blue Cross & Blue Shield of Mississippi “be smoke-free”

Program

HRA Program Components: Lifestyle questionnaire Annual health screenings 50% participation

Understand employees’ health needs & interests

Personalized Health Report Executive Report

Change Your CultureAssess Your Employees

Blue Cross & Blue Shield of Mississippi

Employee Results 2006-2010

0%

20%

40%

60%

80%

100%

2003 2004 2005 2006 2007 2008 2009 2010

75% 84

% 97%

99%

99%

99%

99%

100%

Blue Cross & Blue Shield of Mississippi

Health & Wellness Program Success

Employees have a direct impact on your health plan

Use benefits wisely Health and lifestyle choices impact plan costs Access to Nurse Advice Line Access to Wellness Center Discount Program Annual Healthy You! wellness exam Access to tobacco-cessation Monthly health & wellness information

Change Your CultureInform and Educate Your Employees

Promote Healthy You!

Step ThreeHealthy You! Wellness Benefit

Set a goal of 100% of employees get their Healthy You! visit

Focused Risk Factors Cholesterol Glucose Blood pressure Weight/BMI Tobacco use

KnowKnowYour Numbers

ManageManageYour Risks

Healthy You! Program

Blue Cross & Blue Shield of Mississippi Healthy You! Utilization

(covered employees)

Tangible Results:

If employees know their numbers, they can manage their risks

Our Per Member Per Year (PMPY) costs are

14.2% less for employees in our

Wellness Incentive Program.

Employee Health Impacts the Health of Your Business

Tangible results: Time away from work

Employee Health Impacts the Health of Your Business

Quarterly activitiesQuarterly activities Management in-serviceManagement in-service High participationHigh participation Timely feedbackTimely feedback

Step Four

Healthy Workplace Activities ““be smoke-free” Program be smoke-free” Program

Healthy You! Healthy You! promotionpromotion Eat Healthy ChallengeEat Healthy Challenge be healthy! Challenge be healthy! Challenge LGWM worksite challengeLGWM worksite challenge Be stress-free activityBe stress-free activity

Carefully plan your incentives forlong-term behavior change

Time at work to participate in activitiesExtra day off for the Healthy You! visit Monetary incentivesPrize drawings

Provide Incentives forHealthy Behavior

Step Five:

Participation during work

Activity options Achievement

recognition Competition Financial rewards Benefit differentials

Provide Incentives forHealthy Behavior

Lower healthcare costsLower healthcare costs Fewer employee sick daysFewer employee sick days Reduction in workers’ comp costsReduction in workers’ comp costs Lower disability management costsLower disability management costs Improved moraleImproved morale Reduced turnover Reduced turnover Lives saved! Lives saved!

Return on Wellness

Return on Wellness

Source: Employee and Executive Wellness Solutions

$1.00

$5.93

$-$1.00$2.00$3.00$4.00$5.00$6.00$7.00

Wellness investment ROI per dollar

Indirect Return on Wellness

-28.0% -26.0%-30.0%

12.5%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

Reduced sickleave

Reducedhealthcare costs

ReducedWorkers' Compand Disability

claims

Increasedemployee

productivity

Source: Employee and Executive Wellness Solutions

Healthy Workplace Timeline

Month 2 In-service with

Management/Wellnes

s Committee &

Champion

Month 3 Memo from Champion

to employees about

Healthy Workplace

Month 5 Worksite Wellness Activities begin

Month 1 - Commitment letter- Healthy Workplace

Tour