STRATEGIES FOR A SUSTAINABLE WELLNESS PROGRAM. Sue Blankenhagen and Jennifer Piliero May 9, 2014

Transcription

1 STRATEGIES FOR A SUSTAINABLE WELLNESS PROGRAM Sue Blankenhagen and Jennifer Piliero May 9, 2014

2 Agenda Key Industry Trends Elements of a Successful Wellness Program Five Strategies to Develop a Sustainable Wellness Program Q&A 2

3 Health Trends of the total cost for chronic illnesses driven by the incidence of 15 chronic health conditions. Top health risks and behaviors include poor diet, smoking, poor stress management and physical inactivity. Employers who can target and impact just 3 of the 8 health risks can save as much as $700 per employee per year And can improve overall health, productivity and performance of their employee population. 3 Aon Hewitt 2012 Health Care Survey

4 Wellness Programs Growing & Improving 44% Of companies offer a wellness program (up from 30% in 2011) 1 Companies that believe wellness programs have a direct and positive impact on profitability 1 ROI on health care cost reductions when companies use a properly designed wellness program Aflac Workforces Report conducted by Research Now in January 2013; 2.Harvard University study Workplace Wellness Programs can Generate Savings 4

5 5 Guiding Principles of a Strong Wellness Program

6 Wellness Program Goals Business Goals (Cost Savings) - Reduce/control health care costs - Reduce disability costs - Increase productivity - Reduce absenteeism and presenteeism Wellness Goals (Healthier Employees) - Reinforce company values of balance and teamwork - Motivate employees to change behavior - Motivate employees to participate in healthy lifestyles - Create effective incentives for employees - Increase morale and engagement 6

7 Strategy #1: Ensure Client has Executive Support Helps share the wellness vision, including how it s defined, why it s important and how employees can participate Aligns culture touch points around both formal and informal policies and procedures Serves as a program champion or role model by participating in the wellness program and adopting healthy lifestyles Workplace Wellness Programs Can Generate Savings, Harvard University study, Baicker, Cutler, Song 7

8 Case Study: Executive Support Winners in Training Leadership team serves as a role model in 4-week steps challenge Engage employees in the program Objectives Actions Executives led each of the three teams Executives held kick-off pep rally, communicated weekly and led strategy meetings Losers of challenge served the winning team a victory breakfast 250 participants walked over 56 million steps in 4- week program Results 8

9 Wellness Program Elements Population Stratification Demographics NCQA Health Assessment Labs & Biometrics User Engagement Wellness Portal Tools Program Resources In-House Expertise Business Analytics Reporting Efficacy Return-on-Investment Behavior Modification Condition-specific Programming Health Coaching Incentive Management 9

10 Strategy #2: Understand the Population Clients should collect and analyze data about their organization to help: - Assess - Evaluate - Identify - Measure Carefully review data to: - Identify their organization s risks - Drive program initiatives - Measure year-over-year changes Design a comprehensive, wellrounded program to include all members of their population Employers that require employees to complete a health risk assessment or biometric screening to be eligible for financial incentives 10

11 Case Study: Assess the Population Limited computer access for blue collar organization Needed an easy way to have employees participate in health assessment Challenge Actions Set up kiosks and workstations in cafeteria, onsite gym, etc. Distributed some paper copies of LHA for employees to complete by hand (upload later) 90% health assessment completion Made it easy for population to participate Results 11

12 Strategy #3: Identify Behavioral Change Programs Identify appropriate wellness program initiatives to align with the population s risk factors, office culture and wellness program goals Information alone doesn t change behavior the employee needs to be ready to change Develop and implement the program with these considerations: Are you addressing all risk segments of the population? Are the programs based on a scientific behavioral change methodology? Can the programs be delivered and accessed the way the employees want? Does the wellness program provider(s) offer support to monitor the outcomes? 12

13 Focus on Behavior Change The ultimate ROI for a strategic wellness initiative is in changing lifestyle behavior for the long run 13

14 Engagement Access Points Web Web Paper Tablet Mobile Devices 14

15 Case Study: Behavioral Change Shaping your Health Motivate diverse 1,000+ employees dispersed across 8 locations to adopt healthier habits Create long-term cultural shift towards health & fitness Objectives Actions Kick-off event with free biometric screenings & health risk assessments Team challenges promoted through grass roots efforts Championed by executives Incentive-based structure 64% ongoing employee engagement rate 97% participants took health assessment 1,000+ pounds lost by participants HQ alone experienced $70k savings based strictly on weight loss Results 15

16 Strategy #4: Communicate and Incent! Keep incentives simple, but strive for an approach that incorporates health outcome achievements if consistent with program goals - Participation-based vs. outcome-based - Remember ACA rule of 30% max Maintain a correlation between the value of the incentive and the level of effort needed to meet a requirement Incentives should comprise 1/3 of program budget 16 Source: Cerner Wellness

17 Impact of Incentives on Participation Incentive Level Health Assessment Participation Estimate Health Coaching Participation Estimate No incentive Less than 20% Less than 2% Low incentive ($25-$50) Moderate incentive ($50-$200) High incentive 20% - 40% 2% - 4% 40% - 60% 5%-9% 60% or greater 10% or greater ($200+) 17

18 Case Study: Communicate and Incent Actions Build a global health & wellness program that benefits the individual and the company Ensure measurements in place for ongoing participation Objectives Established baselines for participation as well as budget for incentives Promote through multiple channels: , signage, newsletters, new hire orientation, webinars, internal TV Offer a rich incentive program Recognition was a key element of the incentive program shine the spotlight Used competitions to help drive participation Results 18

19 Strategy #5: Assess and Modify Tracking and evaluating program data is beneficial to both the organization and the individual Create Campaign Cadence Help clients recognize that it may take years to see the impact of some of the programs be patient! Organization Obtain information to improve existing program initiatives Demonstrate value Measure change and showcase progress over time Address failed programs and determine the root cause Keep the program fresh so that employees stay interested Individual Motivated by positive change Can easily see progress

20 Metrics to Measure Program Elements Participation Satisfaction Outcomes Communication Strategy Medical claims & Pharmaceutical savings Industry Benchmarks Metrics Health Assessment Program enrollment Program completion Post-program survey Members achieving tangible behavioral change and key outcomes (i.e. pounds lost, quit smoking, etc.) Response method, timing, behavior, demographics and frequency Projected medical and pharmacy savings associated with healthy participants Compare results to benchmarks and trends

21 Case Study: Measure to Evaluate & Improve Develop looking forward goals Ultimately obtain healthiest employer award Objectives Actions Used outcome-based incentives Expanded health coaching Established ROI reporting Created targeting programs 59% of the plant participated in all program steps to get premium discount Increase of 16% participation in preventative screenings over previous year Results 21

22 5 Strategy Summary Leadership Support Understand Population Focus on behavioral change Communicate & Incent Monitor & Modify 22

23 Organizational Benefits of a Wellness Program Contain health care costs Administration time Foster a healthy culture Improve productivity Help employees address health risks before they become serious problems Support employees healthy behaviors Reduce absenteeism and presenteeism Demonstrate caring and concern for employees Provide resources and tools that build employee engagement Improve employee retention and recruitment Offer access to expert wellness support and resources wherever and whenever employees want it Help employees feel better physically, mentally and emotionally 23

24 Q & A

25 2014 Ceridian HCM..