An Employer’s Wellness & Preventive Medicine Program A Culture of Health April 2013 About Parker The Global Leader in Motion & Control Technologies (NYSE:PH) • $12.3 Billion in Revenue • 58,000 Employees • 47 Countries • World’s leading diversified manufacturer of motion and control technologies and systems • Broad technology platform encompassing nine technologies: • Hydraulics, electromechanical, filtration, aerospace, climate control, fluid and gas handling, pneumatics, sealing and shielding 110811CAM Our Focus: Promote Wellness 3 110811CAM Promoting Our Wellness Goals Our objectives include globalizing Health and Wellness as an evolving initiative with continued goals for 2013: • Improve overall health and quality of life • Create and sustain a culture of health for all employees • Continue a leading edge approach to the benefits offered to employees • Reduce absenteeism • Link Wellness to Safety! 4 Resources & Strategy A Culture of Health • Culture of health driven by top leadership • Robust educational programs focused on health and well being • Monthly Wellness communications encompassing health topics and themes that trend with the National Health observances • Monthly Health and Wellness Webcasts focus on program materials and benefit updates • New positions created to drive healthy lifestyles • Monthly Noon Time Learning sessions • Wellness Toolkits 5 110811CAM Health and Wellness Integration Continues – U.S. Programs & Health Plan Suppliers 24/7 Nurseline & Online Resources Medical Plan Choices + Consumer Driven Plans EAP Services and Behavioral Health Preventive Health Benefits Parker Total Rewards Parker Health and Wellness Promotions Lifestyle Intervention Programs 6 Disease Management Health and Wellness Strategy An Integrated Platform of Services Healthy Pregnancy & Future Mom’s program Wellness & Preventive Medicine Program (CAM Benefits) Why Offer Wellness & Prevention? • A key component of our Health & Wellness Culture • Services provide a holistic approach to lifestyle modification and prevention • Program provides expanded choice and treatment options including Complementary and Alternative Medicine (CAM) and less invasive therapies to treat illness, disease, stress, and more • Wellness & Preventive Medicine promotes healing of the body using nutrition and exercise to stimulate and improve immunity while repairing functions of the body Parker provides a Wellness and Preventive Medicine Benefit and pays for services at 80% 7 110811CAM Wellness and Preventive Medicine Program Complementary Alternative Medicine General Overview to Complementary and Alternative Medicine (CAM) Complementary and Alternative Medicine (CAM) are approaches to healthcare that are used in place of conventional medicine as they have not gained wide acceptance in the traditional medical community to be considered standard medical treatment. CAM benefits generally offer a variety of non-conventional, holistic services and alternative therapies. The eligibility and benefits for CAM are determined based on the terms of the specific benefit plan. The National Center for Complementary and Alternative Medicine (NCCAM) defines CAM as a group of diverse medical and health care systems, practices, and products that are not presently considered to be part of conventional medicine. 8 Complementary (in combination with traditional treatment) Alternative (replacing traditional treatment) Our Wellness & Preventive Medicine Benefit – U.S. Plans Parker pays for covered services where appropriate – must be enrolled with Medical • The medical plan deductible and out of pocket maximum are not applied • 100% for all in-network nutritional and smoking cessation counseling • 80% of all other eligible in-network services • 60% for all out-of-network services • A $100 CAP on member coinsurance for the initial Office Visit each CY with full health assessment & lab 9 All Services and Benefits Administered by NGS CoreSource – Parker’s Plan Administrator Includes an Integrative Online Member Portal with online tools 10 Wellness & Preventive Medicine National Contracted Partners National Partners include: 11 Wellness and Preventive Medicine Program Types of Covered Services 12 Acupuncture Allergy Elimination Technique/Immunology Anti Aging Longevity Therapy Reflexology Biofeedback Craniosacral Bio Identical Hormone Therapy Medical Nutrition Detox Therapy (Ionic Foot Bath) Polarity Therapy Chelation Therapy Reiki Therapy Weight Watchers Yoga Therapy Essential Oil Therapy Rolfing Tobacco Cessation Consultation Laser Therapy (low Hyperbaric Oxygen Treatment IV Therapy Hypnotherapy Massage Therapy level/cold) Prolotherapy Supplements Wellness and Preventive Medicine Program Parker Benefits Most Covered services are paid unlimited Non-contracted are paid at the INN benefit level while in credentialing Pre-Certification is not required but strongly recommended Network Provider Out-Of-Network Provider Annual Deductible and Out-Of-Pocket Maximum Does not apply Does not apply Medical Nutrition and Smoking Cessation Consultation Plan Pays 100% Plan Pays 60% You Pay 40% All Remaining Treatment for Allowable Conditions and Symptoms Plan Pays 80% You Pay 20% Plan Pays 60% You Pay 40% Benefits 13 Wellness and Preventive Medicine Program Massage Therapy Benefits • Annual Visits – 75 per CY • Services are subject to Fee Schedule of $123.96 per 60 minutes • Allowed charges are paid at 80% • Parker’s number one utilized service • Allowable visits may be for: General Wellness / Therapeutic Stress and Relaxation Treatment of Conditions 14 Wellness and Preventive Medicine Program Program Utilization – US - Corporation Parker Services tracked through NGS Utilization Update includes running total commencing April 2012 # Average of unique users (all members): 7,857 Total paid claims: $9,940,250 In-Network % utilization 91% (OON 9%) Top 3 Utilized services through NGS represent 68% of paid claims 36% massage 16% acupuncture 16% supplements 15 Wellness and Preventive Health Network The Wellness and Preventive Health Network 4 24 23 25 14 20 45 10 66 425 7 1,583 Providers Added Between April 2012 and March 2013 8 125 77 22 3 68 39 17 7 12 1 32 6 12 277 40 27 3 8 32 56 35 6 9 2 Wellness and Preventive Health Network Network Development Strategy Phase 1 - Complete Phase 2 - August - Now Reach out to all providers Recruit key providers Phase 3 – January - Now that were utilized by With focused efforts: Recruit through associations and Parker Employees and specialized organizations with Dependents under prior • OON providers w/paid claims MDs, DOs NDs, other holistic CAM PPO Network • Employee practitioners and specialty • 370 Providers nominations providers such as those in the field • Plant Locations • 533 Unique Members of Oncology. nominations • Large locations >100 Detailed action plan with revised credentialing process in place 12 to 18 Mos. Timeline 17 Parker’s Perspective We are one of only a few companies to offer a very unique Integrative Medicine Program • Parker’s program is not about reducing costs but offering the employee flexibility and choice. • We believe that over the long-term, offering Integrative Medicine can lower employee and employer healthcare costs . • Lifestyle Management programs can bring savings to companies and life-saving interventions to employees • Reflects our recognition of wellness as a key to a healthy and productive workforce. 18 110811CAM From The Top Leadership Commitment “We’re offering these benefits for our employees because we want them to be healthier. We want them to be happy and have a healthy and productive life…and we are giving them the best opportunity to experience that.” Don Washkewicz Chairman, CEO and President 19 110811CAM Thank you.. QUESTIONS…. ??? 20 110811CAM