Health Earnings Beyond Simple Incentives

Transcription

1 t h e w e b i n a r s e r i e s SM Health Earnings Beyond Simple Incentives Participants Jeff Viviano, Sr. Manager, HR Operations, Benefits & Payroll, Welch Allyn Thomas Flynn, Principal, Mercer Health & Benefits David Poole, Vice President Sales, RedBrick Health

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 LIMITED RESULTS THROUGH WELLNESS Tired programs and a sickly response 4% of smoking employees participated in employer-sponsored smoking cessation programs 5% of overweight employees joined workplace weight control programs 10% of employees with chronic conditions participated in employer promoted disease management programs Survey Findings: Two Roads Diverged: Hewitt's Annual Health Care Survey

6 CONSUMER 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 6

7 ENTER INCENTIVES Mercer 2008 Annual Survey of Employer-Sponsored Health Plans 7

8 WHY INCENTIVES ARE HOT Grab attention Encourage behavior change Introduce employee accountability Align financial drivers Fairness of incentive models (when focused on controllable factors) Proposed element of U.S. health care reform 8

9 BEYOND INCENTIVES Ultimately, it s not about incentives. It s about moving towards a FAIR and SUSTAINABLE way to change health care financing. 9

10 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. 10

11 WHAT GIVES? WHAT S THE HOLD UP? Change is hard and too many wellness programs Preach to the choir, don t reach the hard-to-reach Fail to engage the majority, support employees on a 1:1 level Require burdensome integration (technology) and coordination (management) Can not accommodate multiple health plans or are solely driven by the health plan Play into current health care system that does not place a premium on fairness and personal responsibility and accountability Miss opportunity to link rewards with sustained healthy behaviors Getting past the impact of extrinsic rewards (simple incentives) to create real behavior change 11

12 MOVING BEYOND SIMPLE INCENTIVES Significant opportunity exists for moving beyond simple incentives, but a disconnect exists with many of today s wellness programs. Hewitt: 10th Annual Health Care Report, Challenges for Health Care in Uncertain Times (2009) 12

13 13 A BIGGER VISION

14 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 14 Enroll & Engage

15 THE HEALTH EARNINGS SYSTEM Clinically Driven, 1:1 Lifestyle/DM Programs $ Fitness & Nutrition Programs $ Workplace Competitions & Challenges $ Self-Directed & Coach-Assisted Health Status Tracking 15

16 THE HEALTH EARNINGS SYSTEM $ Personalized Incentives Cash / Gift Cards Enhanced Benefits Health Earnings Account Premium Reductions HSA Contributions Evaluate Results & ROI 16

17 MOVING BEYOND SIMPLE INCENTIVES Adopting new mindsets Employers Fairness and Accountability Personalized and Supportive Employees Shift employee mindset from: I want that gift card to I want to be healthier and If I make the choice to be healthy, I should reap the rewards. 17

18 MOVING BEYOND SIMPLE INCENTIVES Change is hard, you need Senior-level support Commitment to transparency Solid, substantive and strategic communications plan Comprehensive and integrated programs and tools; no silos Clear definition around funding the incentive pool Focus on payment for behaviors within an individual s control Long-term orientation 18

19 HEALTH & WELLNESS AT WELCH ALLYN Vision Welch Allyn will be an industry leader in promoting and enhancing the health and well-being of our employees and their dependents. Objective Significantly improve the health of employees and their dependents while helping the company achieve its long-term strategy and goals. 19

20 HEALTH & WELLNESS AT WELCH ALLYN Welch Allyn CEO Julie Shimer Leading Employees On a Walk 20

21 EMPLOYEE HEALTH OWNERSHIP CONTINUUM No Involvement Awareness Action Outcomes Employee is uninterested in and/or not engaged in managing their health Employee participates in and/or seeks information about health lifestyle choices Employee acts to minimize risks associated with current lifestyle Employee achieves changes in lifestyle and associated health risks Often makes unhealthy lifestyle choices (I.e. poor diet, smoking, limited exercise, etc). Is knowledgeable about risks associated with lifestyle risks and/or genetics. Understand consequences of action (or inaction) regarding lifestyle Is committed to change and confidentially utilizes available resources (i.e. personal physician, health tools & resources). Remains current on health status & takes appropriate action. Maintains healthy lifestyle Sustains reduced risk factor over time 21

22 HEALTH MANAGEMENT PRIORITIES Number of Conditions per % of # of Average Cost per Claimant Claimant Claimants Claimants Zero 75% 3,231 $1,589 One 20% 862 $4,688 Two 4% 174 $9,459 Three 1% 35 $10,788 Four or more <1% 13 $11,861 Having one chronic condition triples the average cost per claimant Each additional condition further magnifies the cost per claimant What can we do? Provide integrated resources and design smart incentives to #1 Priority: Keep the healthy people healthy #2 Priority: Help chronically ill to manage their condition 22

23 INCENTIVE ALIGNMENT AT WELCH ALLYN The approach at Welch Allyn (Part I) Focus on benefits for employees first; company second Create a sense of self responsibility Promote behavior change within the individual s control Start with the carrot, support with tools, resources and rewards 23

24 INCENTIVE ALIGNMENT AT WELCH ALLYN The approach at Welch Allyn (Part II) Connect healthy living to healthcare financing: reduce premiums Reward people for doing the right things for their personal health Reward the healthy to stay healthy Equal opportunity and incentives, regardless of health status Pull employees across the engagement continuum; participation then outcomes 24

25 CHOOSING TO INCENT More broadly, what you need to think about Where are you today? Lots of moving parts and complexity Constant education What to incent? Appropriate incentive levels HIPAA non-discrimination issues Transparency and cost-shifting perceptions Administration and technology infrastructure considerations Incentives Alone Will Not Move the Needle 25

26 DRIVING SUSTAINED ENGAGEMENT The Experience at Welch Allyn First only rewarded participation in health risk assessments (simple incentives) Time-limited experience; no connection to behavior change/outcomes (simple incentives) Created bigger wellness vision and promoted accountability, fairness and responsibility (moving beyond simple incentives) Increased and stratified the incentive pool into program participation (moving beyond simple incentives) 26

27 DRIVING SUSTAINED ENGAGEMENT PHASE I. Get to Know You Awareness and Education II. Get Going Action and Behavior Change III. Preventive Care Maintenance Mode FEATURES Participants Complete All Three: Health Screening Health Assessment Online Profile Participants Engage in Health Programs: Programs for the Healthy Programs for the Chronically ill Participants Follow Preventive Care Schedule: Age/Gender specific guidelines AMOUNT Earn: $125 Earn: $360 Earn: $45 We are growing the incentive pool meaningful incentives 27

28 DRIVING SUSTAINED ENGAGEMENT Beyond Simple Incentives at Welch Allyn Consolidated wellness initiatives with RedBrick s Health Earnings System Introduced multiple comprehensive health and wellness programs Provided employees multiple options to earn incentives Pushed to get to the far right of the wellness engagement continuum Fostered Health Earnings culture through better health and financial sustained rewards 28

29 HEALTH EARNINGS AT WELCH ALLYN Among the nearly 1,500 Welch Allyn employees eligible for RedBrick Health: Engagement Results 100% 75% 67% 67% 82% 62% 50% 25% 0% Health Assessment Biometric Screening Web Registration Program Participation 29

30 HEALTH EARNINGS AT WELCH ALLYN Within this same population, there are now: Risk Reduction (One Year) % At Risk Year One % At Risk Year Two 100% 75% 50% 25% 11% 3% 11% 34% 0% Cholesterol (HDL) BMI Nutrition Physical Activity 30

31 HEALTH EARNINGS AT WELCH ALLYN Jim Colvin, Welch Allyn employee RedBrick Health programs do a great job of giving you numerous, manageable options to improve your health. It s easy to engage and you don t have to do it all at once. In one year, I lost 40 pounds and 10 percent body fat. I also used to regularly see a chiropractor and no longer need to. The changes I ve made are now part of my life; I feel better physically and emotionally; and I m motivated to meet my next set of goals through RedBrick Health. 31

32 HEALTH EARNINGS AT WELCH ALLYN Promising behavior change after one year Starting to align health care costs with individual employee behavior Streamlined and integrated wellness programs and financial award administration $323 PEPY medical/productivity savings Anticipated 5 percent reduction in health care costs over five years Foundation and technology infrastructure for future success and cost reductions 32

33 QUESTIONS AND ANSWERS Jeff Viviano Sr. Manager, HR Operations, Benefits & Payroll Welch Allyn Thomas Flynn Principal Mercer David Poole Vice President Sales RedBrick Health UPCOMING WEBINARS December The In s and Out s of Administering Health Earnings SM Across the Workplace PREVIOUS WEBINARS October Step Up to Health Earnings SM with Hess Corporation 33