Wellness ProgramSeptember 6, 2011

Wellness Program Background

When the City solicited bids for the operation of the Employee Health Clinic, part of the bid process was to implement a full scale Wellness Program for City employees.

San Angelo Community Medical Center now operates the Clinic, and they have hired Christy Nesbitt, RN, as the Wellness Coordinator to run the Wellness Program for the City.

Wellness Program Background

By utilizing a third party administrator for the program, this ensures all information collected is reviewed by healthcare professionals and is protected by all the federal privacy laws, including the Health Insurance Portability and Accountability Act (HIPPA).

The City will only be able to see aggregate data that will identify health trends within the workforce.

The Wellness Program has three phases, and the first of those is to assess the health of the workforce.

Wellness Program Phases

Wellness Program

Assess Health through

Health Risk Assessment & Health Screening

Analyze aggregate data & develop voluntary programs to reduce health risks such as:

Heart Health Diabetes Cancer Nutrition

Phase I

Phase II

Phase III

Wellness Program Background

During the meetings of the Insurance Review Committee, the benefits of a Wellness Program were discussed. The Committee understands that the City must position itself to stabilize the self-insurance fund.

Data has shown that reducing risk is the ultimate solution to excessive healthcare costs. Individuals cannot control the amounts charged by doctors or hospitals, but individuals can control some elements of their own personal health. Behavior change at the individual level can be key to reducing risks.

Wellness Program Background

The Wellness Program can also increase productivity by employees utilizing less sick leave.

The Insurance Review Committee recognized the benefits of a Wellness Program and unanimously voted to make the Phase I of the Wellness Program mandatory for all employees.

However laws in this area are constantly changing, and it is no longer lawful for an employer to mandate participation in a Wellness Program.

Wellness Program

What the law does allow is to charge a higher health insurance premium for employees who are in the employer’s health insurance program and who do not wish to participate in Phase I of the Wellness Program.

The law allows employers to charge up to 20% more in total premiums for those choosing not to participate. Total premiums include the City’s contribution for those employees.

Wellness Program Background

Phase I has been:

• required of those employees who have City insurance, and

• optional for those who do not have insurance through the City.

Wellness Program UpdateAs of September 2, 2011, a total of 502 employees have

completed the health risk assessment and only 250 have completed the health screening. (So about half of those who completed the HRA, have also completed the screening.) Many employees have voiced their opposition to doing the health screening. Many have said they would “wait to see” what the City Council would decide.

A total of 849 employees have health insurance through the City.

Summary

Employees have been very vocal about requesting the City find ways to lower their health insurance premiums. Wellness Programs, HRAs and health screenings have been proven to do just that. Prevention is far less expensive than treatment.

Staff is seeking direction on how to handle the health insurance premiums for those employees who refuse to participate in Phase I of the Wellness Program.