economic rationale for worksite wellness

BUSINESS CASE FOR
JOURNEY TO WELL-BEING
June 16, 2014
© 2014 MVP Health Care, Inc.
CONTENTS
Key definitions & MVP’s definition of well-being through Journey to Well-Being
The need for wellness in the workplace
Economic rationale for worksite wellness
Journey to Well-Being Mission, Vision and Objectives
Conclusion and message to Managers
Note to readers: Notes sections for selected slides provide more information about
that topic
©2013 MVP Health Care, Inc.
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Wellness: “An intentional choice of a
lifestyle characterized by personal
responsibility, moderation, and
maximum personal enhancement of
physical, mental, emotional and
spiritual health.”
Worksite Wellness Program: “An
organized program in the worksite that
is intended to assist employees and
their family members (and/or retirees)
in making voluntary behavior changes
which reduce their health and injury
risks, improve their health consumer
skills and enhance their individual
productivity and well-being.”
©2013 MVP Health Care, Inc.
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…….almost two thirds of the
growth in national health spending
over the past 20 years can be
attributed to Americans’
worsening lifestyle habits and, in
particular, the epidemic rise in
obesity rates.”
Source: Goetzel, R.Z., Pickens, G.T., Kowlessar, N.M., The Workforce Wellness Index: A
Method for Valuing U.S. Workers’ Health, J Occup Environ Med, Feb 2013, 55(2):1-8.
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© Chapman Institute. All rights reserved.
MOST OF US ARE CONNECTED TO A WORKSITE
82% of U.S. population has employer connection
Source: The National Data Book, 2012.
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© Chapman Institute. All rights reserved.
Relationship of Risk Factors to Medical Conditions
Source: Bolnick, H., Millard, F., and Dugas, J., Medical Care Savings from Workplace Wellness Programs, JOEM
2012, Jan, 55(1): 4-9.
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© Chapman Institute. All rights reserved.
WELLNESS IN THE WORKPLACE: THE NEED IS CLEAR
Nationally increasing health care costs, without meaningful improvements in health
Most health care spending is related to existing chronic disease, not to promoting
prevention
A significant amount of disease-related costs are directly related to modifiable health
risk factors
High-risk individuals cost more; improvements in a member’s risk profile reduce
health-related costs
Health promotion and disease prevention programs provide significant return on
investment
Journey to Well-Being can support MVP by empowering coworkers to be healthy
and productively engaged at work
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EVIDENCE SUPPORTED COST SAVINGS
Many studies have been done over the years to prove the growing need for effective
population health management wellness programming in the workplace
The following studies provide a better understanding of health risks and how they
effect medical costs, workers compensation and sick leave use
Note to readers: The following slides contain notes section to elaborate on each study
©2014 MVP Health Care, Inc.
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Health Risks Increase Health Costs (Original HERO Study)
N = 46,000+ X 3 yrs
Percent Higher Annual Health Plan Costs
Source: Goetzel RZ, et. al. (1998, October). The relationship between modifiable health risks and health care expenditures: An analysis of the
multi-employer HERO health risk and cost database. JOEM, 40(10):843-54.
© Chapman Institute. All rights reserved.
Health Risks Increase Sick Leave Use (Early Study)
N = 35,451 X 1 yr
Percent Higher Absenteeism
Source: Serxner, S., et al., (2001). The impact of behavioral health risks on worker absenteeism. JOEM, 43(4), 347-354
© Chapman Institute. All rights reserved.
Health Risks Increase Workers’ Comp Cost (Early Study)
N = 3,388 X 4 yrs
Percent Higher Annual WC Costs
Source: Musich, S., et. al., (2001, June). The Association of Health Risks with Workers’ Compensation Costs, JOEM,, p. 534-541.
© Chapman Institute. All rights reserved.
Multiple Health Risks Multiply Cost (Early Study)
Multiples
N = 1,838
Multiples of annual
healthcare costs
compared to
someone with no
health risks
Number of Risks
Source: Yen, Louis, et al., (2004, Sept/Oct). Associations between health risk appraisal scores and employee medical claims costs in a manufacturing co., AJHP, 11(1), p. 46-54.
© Chapman Institute. All rights reserved.
SUMMARY OF COST/BENEFIT RESULTS
Traditional
Newer Programs
Outliers
C/B Ratio
Bank of America
Blue Shield of CA
Duke University
Citibank
City of Birmingham
Coors
DuPont
General Foods
General Motors
GlaxoSmithKline
Indiana BCBS
Johnson & Johnson
Life Assurance
Nortel
Prudential
Travelers
Union Pacific
Washoe County
Study Number
Source: Proof Positive: An Analysis of the Cost-Effectiveness of Worksite Wellness, Chapman Institute, Seventh Edition, 2013.
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© Chapman Institute. All rights reserved.
ECONOMIC RATIONALE FOR WORKSITE WELLNESS
Total = $28,541*
$10,122
Health Plan
Sick Leave
Workers Comp
$14,879
Disability
Presenteeism
$1,757
* = 2010 Dollars
$672
$1,111
Source: Goetzel, JOEM, (2004) data adjusted to 2010 by Mercer Employer Survey
Results and by Collins Presenteeism study (2005) of Dow Chemical that was used for
determining the Presenteeism cost.
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© Chapman Institute. All rights reserved.
WORKSITE WELLNESS PROGRAM GOALS
Relationship
Between
Health
Status
and
Health Cost
Goals
Keep Low Risk
Reduce Risk
Objectives
- Prevention & Wellness
- Demand Management
- Health Advocacy
- Decision Support
- Identify Health Risks
- Behavior Change
Programs /
Tools
- Work Well, Live Well
- Medical Self-Care
- Online Health & Wellness
- Personal Lifestyle Coaching
by phone
- WellStyle Rewards
Classes
For All
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Manage Disease /
Illness / Injury
Info & support
leading to improved
mgmt of diseases &
conditions
- Case Mgmt
- Disease Mgmt
- Utilization
mgmt
Journey to Well-Being / 24/7 Nurse Advice Line / ChooseHealthyTM Discounts / Online
Tools Benefit Design / Transparency / Personal Health Record (PHR)
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JOURNEY TO WELL-BEING DIRECTIONAL STRATEGIES
Mission (what is our
purpose, why do we
exist?)
Vision (what do we hope to
achieve in the future and how
to we hope to be perceived?)
MVP Health Care
Corporate M/V
Improving health. Providing
peace of mind.
MVP Health Care®, through
collaboration and innovation,
will create the healthiest
communities in the United
States.
Journey to WellBeing M/V
Statements
Creating solutions and a
supportive environment to
engage and educate
coworkers to improve and
maintain optimal wellbeing.
MVP, along its Journey to
Well-Being, will empower
coworkers to be the
healthiest workforce in the
United States.
©2013 MVP Health Care, Inc.
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JOURNEY TO WELL-BEING 2014 OBJECTIVES
Journey to Well-Being Program Goals/
Objectives
Data Required
Data Source
1. Reduce financial-related stress by improving
coworker money management skills.
•Pre/post financial well-being program survey data measures
(TBD).
•Financial program
pre/post surveys.
2. Increase by 10% coworkers who feel as though
the work environment makes it easy to make healthy
dietary choices by instituting 2 wellness-related
policy changes in 2014.
•% coworkers agree or strongly agree work environment makes it
easy to make healthy dietary choices.
•Policy implementation data, action taken or not.
•Annual well-being
survey
•Quarterly program
report
3. Reduce coworker obesity and increase % of
coworkers with BMI/Coaching premium discount by
1% per year.
•% Coworkers with BMI/Coaching Premium Discount
•Benefit enrollment
data
4. Improve overall mental well-being among
coworkers and improve their overall home, health
and work stress levels by 0.1 (on a 10-point scale)
each year.
•Ave. Rate of Home Stress, 1-10 scale, 10=highest
•Ave. Rate of Health Stress 1-10 scale, 10=highest
•Ave. Rate of Work Stress 1-10 scale, 10=highest
•Aggregate PHA
report
5. Increase management support/encouragement of
well-being programs and culture by 2% each year.
•% Coworkers who agree/strongly agree management is
committed to the health and wellness of its employees.
•Annual well-being
survey
6. Increase ability to evaluate the results/outcomes
of the well-being program across the entire
population by developing an effective evaluation
plan and reporting processes.
•Evaluation plan completion and approval.
•Report compilation and review.
•Program work
plan
7. Increase awareness of the resources available to
coworkers to help them maintain a healthy lifestyle.
•% Employees agree or strongly agree that they are taught skills
needed to achieve a healthy lifestyle.
•Incorporate new question into annual survey, ie. “How confident
are you that you understand the resources available to you to
help you maintain a healthy lifestyle.”
•Annual well-being
survey
8. Ensure equity of well-being program initiatives in
all work areas.
•# long-term programs implemented in each office.
•# well-being activities implemented in each office.
•# well-being resources/tools in each office.
•Access to/presence of well-being solutions in all offices (i.e. gym)
•Program work
plan
©2013 MVP Health Care, Inc.
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CONCLUSION
As a manager, it is important to support MVP initiatives.
Now, more than ever, Journey to Well-Being can help coworkers become healthier and
more productive.
It is up to the manager, and the tone the manager sets in their department, to give
permission to their team to participate in Journey to Well-Being initiatives such as
fitness classes, health challenges, etc.
Management can also do their part by becoming aware of the health and wellness
offerings available through MVP such as WellStyle Extras, Telephonic Health
Coaching, Care Advantage, Good Measures, and more.
With your help, we can become the healthiest workforce in the United States!
©2013 MVP Health Care, Inc.
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Questions/Comments?
Email: wellbeing@mvphealthcare.com
Clinical Account Manager, dedicated to
the coworkers of MVP Health Care:
Jana Wolff, jwolff@mvphealthcare.com
©2013 MVP Health Care, Inc.
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