7 KEY STEPS TO AN EFFECTIVE
WELLNESS PROGRAM
With
Brad Cooper, CEO
US Corporate Wellness, Inc.
Effective Employee Wellness
and Insurance?
Helps keep claims costs under control
 Enhances value of other benefits and insurance-based
programming already in place (if done well)
 Offers some good news that can be shared with
clients (& employees) during annual meetings
 Provides additional revenue stream and/or additional
value proposition for you/your firm (and another
reason to reach out to clients/potential clients)
 Low maintenance, high value for HR and/or Benefits
Team and you

The Problems…
 Health Care Costs Rising 8-14% Annually
 Disability costs are directly correlated to BMI levels (2-7x’s normal)
 Sick Time Costs Employers $602/employee/year
 One out of two adults will be diagnosed with a chronic disease
 Over 2/3rds of Americans are overweight/obese, with prevalence in
new hires under the age of 40 actually higher than in those over 40
 Smokers cost employers up to $5,600 additional/year
 Health care claims for employees who don’t exercise were $350/year
higher than those who exercised just 1-2 days/week
 Direct health care costs are only part of the picture. Health related
productivity costs are estimated to be equal to 3-4x’s direct costs.
Obesity Trends* Among U.S. Adults
1994
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14
15%–19%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
1995
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
1996
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
1997
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
≥20%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
1998
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
≥20%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
1999
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
≥20%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2000
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
≥20%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2001
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
≥25%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2002
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
≥25%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2003
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
≥25%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2004
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
≥25%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2005
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
25%–29%
≥30%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2006
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
25%–29%
≥30%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2007
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
25%–29%
≥30%
Source – CDC Behavioral Risk Factor Surveillance System
Obesity Trends* Among U.S. Adults
2008
(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)
<10%
10%–14%
15%–19%
20%–24%
25%–29%
≥30%
Source – CDC Behavioral Risk Factor Surveillance System
How about Disability Costs?
Source – Archives of Internal Medicing (Duke
University – 11,700 people in sample size)
Exclude “Severely Obese” and
examine data…
Source – Archives of Internal Medicing (Duke
University – 11,700 people in sample size)
One more step
(“overweight” category only)
Source – Archives of Internal Medicing (Duke
University – 11,700 people in sample size)
Health Care Inflation?
If food prices rose at same rate as medical costs since the 1930’s…
 Dozen Eggs would now cost $85.08
 One Pound of Apples … $12.97
 One Pound of Sugar… $14.53
 A Roll of Toilet Paper… $25.67
 One Pound of Butter… $108.29
 One Pound of Coffee… $68.08
 One Pound of Bacon… $129.94
Source – American Institute for Preventive Medicine, 2009
Wellness Initiative Plans for the
Remainder of 2009
*Health Care Plans – Impact of Financial Crisis
International Foundation of Employee Benefit Plans, 2009
A Little History Lesson
Wellness 1.0 … Group Activities
Wellness 2.0… Disease Management
Wellness 3.0… Web Tools
Wellness 4.0… Generic Call Center Added
Wellness 5.0… Personalized Approach
Outcomes:
The Children’s Hospital of Denver*
*US News Best of Children’s Hospitals Honor Role
Pre- Wellness Program: Average annual increase in medical costs
from 2002-2006 was 10.8%
Post-Wellness Program: Average annual increase in medical costs
from 2007-2010 was 4.6%
Medical plan trends have offset nearly $5 million in two years
Beware the
“Token” Wellness Effort
“If you look at people after coronary-artery bypass
grafting two years later, ninety (90!) percent of them
have not changed their lifestyle.”
-Alan Deutschman
Change or Die
(Note: Lifestyle changes don’t just happen because they’re
“important.” Must involve pattern of Relate… Repeat… Reframe)
Let’s take a look at the literature…
(Research brief from National Institute for Health Care Reform on Effectiveness
of Employee Wellness Initiatives, 2010, covered by the Wall Street Journal)
1.
“Most experts believed that effective coaching is essential to improving health
behaviors.”
2.
"Some employers focus coaching efforts solely on high-risk individuals, but
there appears to be increasing recognition among employers of
the importance of making health coaching available to a broader population.”
3.
There is a great deal of variation between HRAs. However, the research was
clear on this: "What most experts do agree on is that HRAs can be a valuable
screening tool, but only if they are followed up by effective health
coaching and wellness activities.”
4.
"One-size-fits-all programs purchased off-the-shelf from health plans and
wellness vendors are unlikely to make a significant impact. Least likely… are
programs consisting only of online HRAs and Web-based educational tools,
with no individualized follow-up activities to engage employees."
Where is your
trend line heading?
Total Health Care and Disability Costs = ______
Annual Increase of 10% (?) = ______
What if that annual increase were diminished by 2%? 4%? 8%?
And then there’s productivity, retention, sick time, stress reduction…
When Comparing Programs…
Option 1 - $7 PEPM
•1000 Employees
•“Active” Approach produces 50%
Participation (REAL Participation)
•**500-600 Employees actively
engaged**
Option 2 - $3.50 PEPM
•1000 Employees
•Restricted Access to “bottom” 40%
•“Passive” Approach results in 1015% Actual Utilization (or less)
•**40-60 Employees actively
engaged**
(Making comparable “cost” of #2
at least 5 times the
cost/employee of #1)
Place in Life?
Goals?
Weight Focus?
History?
Temperament?
Activity Level?
(And what happens if it
changes next year?)
(Or – painting
the stick orange)
Incentives*
•
•
•
•
•
Usually (always) necessary in some format (varies by industry)
Research indicates $200-300/yr is effective in most organizations
Can be “cost neutral” (ie, balanced out by increase in deductible)
Tie to pursuit vs. achievement is recommended
Various forms available (note tax implications for each):
• Cash
• Time Off
• Drawing for prize (among participants)
• Gift Certificates
• Reduced Insurance Premium
• Goodies (shirts, water bottles, exercise equipment…)
• Health Saving Account tie-in
* Note - Laws vary by state – confirm legal issues with counsel
Only one in twenty adults consistently engage in the five most
important health behaviors:
•Regular exercise
•Healthy levels and types of fat intake
•Five daily servings of fruits and vegetables
•Moderate drinking
•Non-smoking
Source – Institute for the Future, Center for Disease Control and Prevention; Midwest Business Group on Health; Annals
of Internal Medicine, 2002
The
Tipping
Point
The
Rule of
Seven
Costs for a sample organization…
(based on 11,000 benefit eligible employees)
The above CDC Data includes only BMI-Related Medical and Work Loss Costs.
How about Disability Costs?
Turnover?
Inadequate Sleep?
Poor Eating Habits?
Presenteeism/Lack of Energy?
Outcomes:
Sample Client
Cigna, Women >49 Years old, Mammogram
45.50%
Normative
Participants
63.25%
45.28%
Non Participants
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Wellness program participants are more compliant with recommended
preventative care
Likelihood of EIB Claim
at The Children’s Hospital
2.5
2
1.5
1
0.5
0
Wellness Program
Participant
Non-Participant
Additional ROI Data
for Sample Client
The difference in total EIB hours was 2.85/employee, translating to
over $185,000 (Estimated at double if sick time separate)
10% improvement in BMI produced $100,000 in savings
8% increase in exercise levels correlated to $96,000 saved
7.7% in blood pressure translates to over $60,000 saved
Impact on Depression, Smoking and Immunizations produced an
additional $240,000 in annual savings
Note that Edington assigns a value of $350/year/employee who has
been kept from moving into higher risk category
Cutting through the Noise of Options…
Wellness Program Micro Audit
1.
2.
3.
4.
5.
Program is built around individual employee goals, created by
each employee (vs. limited number of generic curriculum) ___
Employee engagement and satisfaction with the program are
monitored and tracked regularly _____
Design of the program drives cultural changes across the
entire organization _____
Time commitment required on part of the HR Professional or
Wellness Champion within organization is < 2 hrs/month ____
Momentum is sustained throughout the year (rather than
seasonal or launch-dependent) _____
Wellness Program
Micro Audit (cont.)
6.
7.
8.
9.
10.
Wellness Coaching offers a variety of options in terms of
unique personalities, preferences, goals, etc _____
Employee participation expands (not shrinks) over time _____
The program adjusts with each employee as their wellness
pursuits change or develop _____
If employees are not initiating activity, the program regularly
provides process to re-engage with them _____
You personally enjoy participating in the program _____
Benefits Broker Micro-Audit
1.
2.
3.
4.
5.
Which of your clients are seeing escalating health
care and/or disability costs?
Which of these clients want to do something
meaningful and ROI-based to change the trend?
Are generic options making a difference for
these clients?
Would it be beneficial to have a new value
proposition to bring to your clients?
Do the wellness programs being provided make
YOU look good?
Thank You!
For more information specific to your organization,
please contact Brad directly at
BCooper@USCorporateWellness.com
or 303-521-1570
Or, visit
www.USCorporateWellness.com