The Ins and Outs of Administering Health Earnings SM

Transcription

1 t h e w e b i n a r s e r i e s The Ins and Outs of Administering Health Earnings SM Participants Nance Lee Mosquera HR Benefits Manager, G&K Services Kurt Cegielski Co-Founder, Sales and Client Services Lead

2 TODAY S REALITIES More than 160 million Americans receive health care through their employer. (AHIP) Health care costs are spiraling out of control pushing beyond $10,000 per employee. (Towers Perrin) More than 75 percent of employer health care costs and productivity losses are related to employee lifestyle choices. (CDC) Bottom Line: Unhealthy behaviors are expensive and non-compliance is common. 2

3 A BALANCING ACT FOR EMPLOYERS Hewitt: 10th Annual Health Care Report, Challenges for Health Care in Uncertain Times (2009) 3

4 ENTER WELLNESS & PREVENTION 66 percent of companies intend to expand or improve wellness programs. (PwC) 4

5 THE HOLD UP: INTEREST vs. ACTION Interest in personal wellness is high, but actual effort to improve and maintain health is mixed. Only less than half of Americans say they act in ways to make themselves healthier. 19 percent say they participated in a healthy living/wellness program in the last 12 months. 7 in 10 say they would participate if they were given a financial incentive such as a reduced insurance premium or monetary reward. 32 percent of respondents with a chronic condition currently participate in a health/disease management program. 3 in 5 respondents with a chronic condition say financial penalties such as higher insurance costs would increase their adherence to their chronic treatment regimen(s). Deloitte: 2009 Survey of Health Care Consumers 5

6 ENTER INCENTIVES Mercer 2008 Annual Survey of Employer-Sponsored Health Plans 6

7 CONNECTING FINANCE & HEALTH: EMPLOYEES ARE READY 58 percent of individuals (overall) support lower cost sharing for patients who are actively participating in a program to maintain or improve their health EBRI/MGA Consumer Engagement in Health Care Survey Even 47 percent of individuals in fair or poor health agreed with the statement that patients actively participating in a health program should pay less than a patient not actively participating in the same type of program. 7

8 8 A BIGGER VISION

9 THE HEALTH EARNINGS SYSTEM Welcome Communications i $ Online Profiles $ $ Advanced Analytics: Real-Time Identification & Risk Stratification $ Biometric Screenings Next-Generation Health Assessment Personal HealthMap Claims Data Importing 9 Enroll & Engage

10 THE HEALTH EARNINGS SYSTEM Clinically Driven, 1:1 Lifestyle/DM Programs $ Fitness & Nutrition Programs $ Workplace Competitions & Challenges $ Self-Directed & Coach-Assisted Health Status Tracking 10

11 THE HEALTH EARNINGS SYSTEM $ Personalized Incentives Cash / Gift Cards Enhanced Benefits Health Earnings Account Premium Reductions HSA Contributions Evaluate Results & ROI 11

12 NANCE LEE MOSQUERA Benefits Manager for G&K Services, Inc. since 2004 United Health Care Director of underwriting (regional books of business, individual, small group, large group, jumbo accounts), director of implementation for online sales, director of national sales ops. Prudential, MedCenters (HealthPartners), Fortis (Assurant), Currently serving on health care reform committees for the Business Health Care Action Group (BHCAG) and the State of Minnesota 12

13 ABOUT G&K G&K Services is a North American market leader in branded identity apparel programs and facility services. Headquartered in the greater Minneapolis area, G&K serves a diverse base of over 175,000 customers throughout the United States and Canada, across all industries including resource-based businesses, manufacturing, high-tech, and public and private institutions. 13

14 HEALTH & WELLNESS LANDSCAPE AT G&K Diverse, de-centralized workforce with mix of unionized and nonunionized employees HSAs are not an option Dichotomy of benefit satisfaction (rural vs. corporate) Overall health care costs lower than industry and employers of similar size, but trending at same rate Eligible (US) Employees 5550 Enrolled 84% Plan Type PPO (two options) 2009 PEPY to date $7046 Total Cost $32 M 14

15 HEALTH AND WELFARE STRATEGIES Continue designing health and welfare benefits based on strategic benefit guiding principles: Attract and retain employees Competitive benefits and costs Accountability, responsibility and choice Information and tools for decision-making Contain costs 15

16 JOURNEY OF ACCOUNTABILITY Programs HRA HRA Screening Profile HRA Screening Profile Incentive $ Incentive $$ Incentive $$$ Cost sharing & shifting Cost sharing & shifting Cost sharing & shifting Cost sharing & shifting HISTORICAL low INDIVIDUAL ACCOUNTABILITY METER high 16

17 THE PROCESS Needed to find a strong partner Did not issue a full-blown RFP, but spoke with multiple vendors kind of like speed dating Nothing wrong with early dates, but nothing catching, nothing different than what we already tried Bend the financial trend in Y1 and maximize employee engagement 17

18 ENTER REDBRICK HEALTH Health Earnings: Fundamentally Different Provide fully integrated health management suite Fairly change health care financing relationship between employer and employee Accommodate multiple health plan types Drive sustained employee engagement and accountability Meet needs of diverse, de-centralized workforce 18

19 THE HEALTH EARNINGS DIFFERENCE Previous RedBrick Included Limited Not included 19

20 FINANCIAL MODELING Kept employee contribution rates as low as possible Similar rate increases on average, opportunity to earn back Re-allocated dollars from existing programs Increased the incentive pool: intense modeling Paying for participation, not headcount Principle premium reduction tied to true behavior change 20

21 SECURING C-SUITE SUPPORT Financial modeling make the business case Look at shock claims get at those people sooner Stay committed to employees Employee experience trumps all Got serious about the carrot vs. stick conversation Employees can t pay more because they re sick Employees can pay more if don t engage (not a point-of-service issue) Three-tier premium structure, phased in approach Communicating support 21

22 CONSUMER-CENTRIC COMMUNICATIONS Communicating yet another program Meetings at every location Train the trainer RedBrick Health leads communications Multiple channels Address multiple constituencies 22

23 ADDRESSING OUR DIVERSE WORKFORCE 70 percent of employees do not have daily access to a computer Kiosks Population of Spanish-speaking employees Translation services Spanish portal 150 Locations Hands-on getting onsite Health screenings 23

24 EARLY SUCCESS Phase 1: "Get Started Engagement Results Enrolled Employee Participation 70% 60% 50% 40% 30% 20% 10% 0% 37% G&K Increase 41% 52% 30% 247% G&K Increase 52% 56% 15% 30% G&K Increase 39% 68% 30% 44% 2% Assessment Screening Web Registration Programs G&K / RedBrick 2009 Results RedBrick Book of Business G&K 2008 Results 24

25 HERE COME THE PROGRAMS Programs go live Jan. 4, 2010 More communications coming Bevy of integrated phone coaching online programs Workplace challenges and competitions Will engage employees not enrolled in benefits program Health Programs (phone, online, coach assist) Asthma Blood Pressure Chronic Pain COPD Diabetes Back Health Heart Disease Heart Failure Insomnia Nutrition Physical Activity Pregnancy Stress Management Tobacco Cessation Weight Management 25

26 HEALTH EARNINGS Employees can earn $225 off of 2010 premiums Employees can earn $450 off of 2011 premiums Quarterly participation in health management program = $75/quarter G&K starts to control costs/bend the trend Forecasted PEPY health & productivity savings Costs per program participation decrease dramatically 26

27 QUESTIONS & ANSWERS Nance Lee Mosquera Human Resources Benefits Manager G&K Services Kurt Cegielski Founder and Sales and Client Services RedBrick Health PREVIOUS WEBINARS (recording available at redbrickhealth.com) October Step Up to Health Earnings with Hess Corporation November Health Earnings: Beyond Simple Incentives with Welch Allyn and Mercer 27