Why Wellness Matters Now: Setting the Foundation for Success and Sustainability Second Annual Worksite Wellness Conference November 4, 2014
Wellness
History of Wellness Safety Fitness 1890 s 1960 s Wellness Continuum Diet Exercise 1980 s 2000 s Well- Being
The New Wellness Landscape
Personal Wellness
MBGH Employer Member Survey Why should an employer offer health benefits and wellness activities? 84% of employers believe health benefits are a necessary cost of doing business - Helps to recruit and retain talent 85% of employers view health benefits as an investment in human capital 95% of employers agree there is a link between an employee s health and productivity Want to ensure a healthy workforce A majority of employers want employees to take responsibility for their health As a response to a health system that has overly focused on the management of chronic conditions rather than wellness and prevention
The Current Health Care Environment The health care delivery system is changing and consolidating ACOs - Medical Homes - Onsite clinics - Centers of Excellence Technology s growing impact on health care Online information - Mobile apps Wearable monitoring devices evisits - Telemedicine Health insurance premiums have increased on average 8 12% a year Health vendors focused on comprehensive population health management strategies Companies - reducing costs across all areas of the organization
MBGH Benchmarking Surveys
2014 MBGH Employer Survey Health Management Priorities REDUCING HEALTH CARE COSTS 64% AVOIDING THE 2018 EXCISE TAX 59% CREATING EFFECTIVE BENEFIT COMMUNICATIONS 59% CREATING A CULTURE OF HEALTH 56% OFFERING MORE TARGETED WELLNESS PROGRAMS 45% 0% 10% 20% 30% 40% 50% 60% 70%
2014 MBGH Employer Survey Wellness Activities Priorities INCREASE EMPLOYEE ENGAGEMENT 33% 62% INCREASE EMPLOYEE USE OF PREVENTIVE SERVICES EFFECTIVE WEIGHT MANAGEMENT PROGRAMS 38% 35% 44% 54% STRESS/RESILIENCY PROGRAMS INCENTIVE/DISINCENTIVES TO IMPROVE ENGAGEMENT 32% 32% 42% 42% 0% 10% 20% 30% 40% 50% 60% 70% High Priority Medium Priority
2014 MBGH Employer Survey Wellness Activities Priorities REDUCING TOBACCO USE AT THE WORKSITE 21% 31% OFFERING HEALTHY FOOD CHOICES AT WORKSITE 21% 38% OFFERING FITNESS CHALLENGES 18% 44% 0% 10% 20% 30% 40% 50% High Priority Medium Priority
Around the World 2012 Buck Global Wellness Survey
Around The World 2012 Buck Global Wellness Strategy
Making the Business Case for Wellness
Making the Business Case for Wellness After payroll, employee benefits is company s largest budgeted expense
Small Business Strategies Criteria to Consider Capturing CEO Support Designating a Company Wellness Leader Conducting an Employee Health Interest Survey Implementing Healthy Policies and Procedures Providing an Opportunity for Health Screening Administering an Annual Physical Activity Campaign Holding a Healthy Eating In-service/Lunch n Learn Establishing an In-house Wellness Library Disseminating a Quarterly Health Newsletter Supporting Community Health Efforts Source: WELCOA, https://www.welcoa.org/services/build/wellness-small-business/
Making the Business Case for Sustainability Assess current population health status Use company data to determines direction and trend compare to industry benchmark Use data that is actionable Answers the question Why should we take action? Assess current benefit design strategy Does it support employees navigating the healthcare system appropriately? (benefits, incentives/disincentives, etc.) How and when to incentivize? Focus on readiness to change as well as behavior change Use key activities to highlight overall wellness
Making the Business Case for Sustainability What programs/activities will anchor your wellness strategy? Annual Fitness/Walking Challenge Biometric Screenings Maintain and Internal Health Management Team Brings together key stakeholders in the company that are focused on employee health, safety, benefits, compensation, workers comp, etc. Engages leadership through program outcomes and participation Team has access to decision-making authority in order to move forward with programs and activities
MBGH 2010 Landmark Research Triggers and Barriers to Engagement
MBGH Research Triggers and Barriers to Engagement Project Objectives To better understand what prompts (triggers) or prevents (barriers) employees from participating or maintaining involvement in employersponsored health benefits and health improvement programs. To gain insight into what motivates and engages employees to take responsibility for managing their own health, and what it takes to support them in changing unhealthy behaviors. To determine the influencers of employee decisions and actions by collecting input from audiences beyond the employee - specifically, physicians, spouses and health coaches. To use the findings to support employer efforts in effective and efficient benefit design, administration and communication of health care and VBD benefits, wellness programs, incentives and health improvement activities.
MBGH Research Triggers and Barriers to Engagement Participating Organizations 3 Manufacturing Companies (L) 1 Hospital (M) 1 Health Care Delivery System (M) Individual Participants 140 employees completed online survey 22 Focus groups conducted 192 Total # of focus group participants 148 Employees 14 Physicians 14 Spouses (2 companies) 16 Health coaches (2 companies)
MBGH Research Triggers and Barriers to Engagement
MBGH Research Triggers and Barriers to Engagement Top barriers: Trust, Time, Money, Convenience, Stress Family and loved ones can have strong influence on employee behaviors BUT can be a barrier to supporting healthy lifestyle change For women, guilt about making health a priority feel they need to take care of others vs. themselves - especially true for mothers, singleparents and health care workers Men do not like to be told what to do. Due to the economy, they feel pulled to spend more time at their job, rather than being with family adds stress. Employees concerned with confidentiality do not want to provide information to a health coach they don t know or complete employer assessments if they don t know what happens to results
MBGH Research Recommendations for a Successful Health Management Strategy Make sure your company s benefit design helps employees and covered dependents navigate the healthcare system effectively Provide employees with concise communications on benefits coverage and options, out-of pocket costs and descriptions of benefit changes Structure incentives as part of the benefit design - employees may value them more AND it can maximize the organization s investment Determine the overall picture of health using agreed upon metrics Share your company s needs with health management vendors (i.e. data access, potential outcomes, etc) - coordinate efforts so a consistent message is conveyed to employees Have performance measures built into your health plans and pharmacy benefit vendors that support medication compliance Provide self-care resources (i.e. handbook) that offer ways employees can better manage when to see the doctor
Employer Case Studies
Improving Employee Engagement Outcomes-based Incentives Growing interest in employers integrating outcomes-based (or results-based) incentives into existing incentive program designs to increase personal accountability and achieve results Differs from traditional, participation-based incentive programs which may or may not lead to a measurable difference in key health factors Emerging industry best practices indicates that.. Employers that combine incentives for participation in healthy activities with rewards for healthy outcomes can increase engagement in health and wellness programs
Employer Example Outcomes-based Incentives Industry/Size/locati on(s) Branded Wellness Strategy Company Health Goals Initial Wellness Strategy Employer A Manufacturer / 34,000 employees / various locations around the country Yes Develop an incentive program that targets risks proven to drive costs Design a program that increases awareness and accountability for health risks and costs Focus cost differentials on the highest risk population and provide achievable goals Provide employees and their families sufficient time to plan for change Offering gift cards for screening participation Know Your Numbers Campaign Employer B Printing / 22,000 / various locations around the country Yes Control costs by providing a full range of healthcare services Focus on wellness, preventive medicine Offer benefits that attract, retain staff Maintain flexibility in benefits design Improve patient access with onsite and near site facilities Want to shift from fixing to preventing Premium differentials Monetary rewards depending on level of engagement
Employer Example Learnings: Outcomes-based Incentives Communicate early and often Communicate overall strategy no surprises! Use data to determine next steps Provide ongoing employee support Clear and persistent communications critical to success Use the underlying theme of personal responsibility for your own health Confidentiality is the cornerstone of our company s message
Developing a Culture of Health Culture of Health: The creation of a working environment where employee health and safety is valued, supported and promoted through workplace health programs, policies, benefits, and environmental supports Building a Culture of Health involves all levels of the organization establishes the workplace health program as a routine part of business operations aligned with overall business goals Results have a positive impact on health care costs and improved worker productivity Encourage engaged and empowered employees This takes Time& Commitment! Source: Center for Disease Control and Prevention
Employer Examples Culture of Health Strategies
Case Study: Lincoln Industries Culture of Health Number of employees: 600 Annual Health Care costs are 40% lower than industry standards Source: Welcoa Employer Case Studies
Measuring ROI and Investing in Wellness
Measuring ROI Gaining Value for Your Investment To measure ROI to reduce health care costs and productivity Align programs with metrics that can affect health care costs and productivity Align benefit strategy to impact health care costs and productivity Measuring Value on Investment Identifying the benefits Impact is on satisfaction Provides opportunity for population to connect Engages people to take responsibility for their health
ROI and Wellness Most companies don t define ROI some are moving to VOI Some use reduction in health care costs as the only valuable metric others are moving to what s the value proposition? Vendors have used cost avoidance metrics has gotten a bad rap in the news Companies Need To: Determine agreed upon metrics that will be valuable to the C-Suite Focus on policies and benefit design strategies that increase engagement and support employees to navigate the health care system Develop an overall strategy that includes leadership support, a focus on reducing risk, engagement and culture of health
Employer Investment in Wellness Is it having an impact?
Employer Investment on Wellness Effect on the Economy
What s Next for Employers? Outcomes-Based Incentives Defined Contribution Plan Options: Movement towards CDHPs Public/Private Exchanges Specialty Pharmacy Chronic condition management through technology Onsite clinics/tele-medicine
Q & A THANK YOU! Margaret Rehayem Senior Director of Strategic Initiatives and Communications Midwest Business Group on Health www.mbgh.org mrehayem@mbgh.org