Health, Wealth and WellnessMay 5, 2005

Debra Parenti, Lake Park High SD 108

Dave Carrell, Gallagher Benefit Services

Agenda Health Trends – General Information Cost Containment/Hidden Wealth Why Wellness Programs? Wellness Programs/Health Promotion Wellness Program Successes Resources and Websites

Health Trends

Health“the condition of being sound in body, mind, or spirit; especially : freedom from physical disease or pain, the general condition of the body”

Merriam – Webster Dictionary

Health“ If I had known I was going to live this long I would have taken better care of myself.”

Mickey Mantle

We All Know About This Trend . . .

6.9%

17.1%

12.1%

10.1%

8.0%

6.1%

10.1%

14.7%

2.5%

1.1%

16.7%

18.6%

2.1%

0.2%

10.7%

12.3%

10.4%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Trend in Health Benefit Costs

Trend in Life Expectancy

Source: World Factbook 2001/Historical Statistics of the United States

65 70 75 80

1960

1970

1980

1990

2000

Average life expectancy

Trend of Increased Obesity White male executives age 30 – 40 lead the

field in girth acquisition, increasing at an annual rate of 6 percent, the fastest rate among workers studied

Percent of Obese Adult Population 1991: Men = 12%, Women = 12.2% 2001: Men = 21%, Women = 20.8%

Source: National Center for Chronic Disease Prevention and Health Promotion

Cost Containment/Hidden Wealth

Wealth“the abundance of valuable material possessions or resources ”Merriam – Webster Dictionary

Wealth“Leaders are often under pressure to simply shrink benefit expenditures immediately rather than consider the longer term benefits of a comprehensive wellness program built on the foundation of a solid 3-5 year plan ”

Jack London, Senior Consultant, North Shore - Apex

What are the costs of an unhealthy work force? Death Claims Disability Claims Workers Compensation Claims Absence Costs/Lost Work Days Productivity Losses Administrative Overhead Replacement Costs Over hiring Health Care Costs Legal Costs

What do We Know For Sure?

4%

31%

61%

38%

27%26%

12%

1%

0%

25%

50%

75%

Healthy Acute Chronic Catastropic

Medical Costs

Members

Source: Aetna

The Lower the Risks…..The Lower the Costs

% Of

Population

But Did You Know This?

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Group Health TotalAbsence

STD IncidentalAbsence

LTD FMLA WC

Direct Costs Lost Productivity

Average Annual Cost Per Employee

Total Cost of Health Risk

Source: IBI Full Cost Study

Why Wellness Programs?

Wellness“ the quality or state of being in good health especially as an actively sought goal”Merriam – Webster Dictionary

Wellness“ Yes, money will be saved, productivity will increase, but the most important message is that the employer wants the employee to be healthy for its own sake”John Bly, Officer of Greendale Education Association

Wellness“There's a need for accepting responsibility - for a person's life and making choices that are not just ones for immediate short-term comfort. You need to make an investment, and the investment is in health and education. ”

Buzz Aldrin, Astronaut

Why Should I Spend Time or Money to do This?

• People’s health is their own business• It’s not our business• It’s not serious business stuff• It’s too hard to do• No time• No $• It’s not worth the gamble

Why I Should Spend Time or Money to do This…

• Employees’ health is the employer’s business• Employers pay the “bill”• Health insurance is one of the largest growing costs• Numerous public and private resources available for

assistance• Start small and use your resources wisely and

creatively• The higher risk is to do nothing

Wellness Programs/Health Promotion

HIPAA “Bona Fide Wellness Programs”

1. Rewards must not exceed a percentage of the cost of employee only health plan coverage (10%, 15%, 20%)

2. Program must be reasonably designed to promote health and prevent disease, and participants must be given the opportunity to qualify for reward at least

3. Reward must be available to all similarly situated individuals4. Alternative standards must be available to achieve

the award

A wellness program that allocates a financial incentive contingent upon the satisfaction of a standard related to a health factor, must satisfy four criteria to be a “bona fide” wellness program

Keys to Health Promotion Success

Identify high risk employees and hire health coaches.

Make it about more than just fitness.

Give it top billing and communicate it to everyone.

Have third-parties coordinate key components.

Have a cheerleader.

Wellness Programs/Health Promotion

On-site Health Screenings Disease Management Lifestyle Modification Programs

• Smoking Cessation• Weight Management• Exercise• Nutrition

Lifestyle Modification Programs Diet & Exercise Weight Management Work/Family Life programs Health Information Libraries/Resources Smoking Cessation Personal Finance Management Disease Management

Work/Safety Modification Programs Behavior based Safety programs/Coaching Ergonomic Workstations, Tools and

Processes Facility Safety and Health Site Culture Environmental (i.e. air quality) On-site Health Screenings

Expectations and Advantages Many risks can be eliminated Losses can be managed and reduced Best practices strategies are effective Waiting prolongs losses and delays results

Measure Results/Evaluation

Track program participation and participant satisfaction

Monitor changes in attitudes, skills and behaviors

Evaluate changes in biometric results Measure impact on absenteeism, turnover and

morale Analyze ROI of health promotion programs

Wellness Program Successes

Wellness Program Successes Northfield Township SD 225 – Dr. Craig

Schilling, Asst. Superintendent of Business Affairs

Greendale SD (Greendale, WI) – Erin Gauthier-Green, Director of Business Services

Resources The Wellness Councils of America (WELCO)

www.welco.org National Wellness Institute

www.nationalwellness.org AARP

www.aarp.org MAP for Non-Profits

www.mapnp.org HHS – Safety and Wellness

www.os.dhhs.gov/safety

Closing CommentsEmployees are your most important assets. Invest in their care, at least as much as you invest in caring for your other assets.