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How Targeted Employee Communication Can Increase CDHP Adoption Rate

Reducing Health Care Costs and Energizing Employees

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FORUM East · May 9-10, AtlantaEARLY BIRD REGISTRATION IS OPEN!

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ISSUE || September/October 2012

Rules ofEngagementPersonalized Messaging Key to Getting Employees’ Attention

Rules ofEngagementRules ofEngagement

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www.TheIHCC.com I HealthCare Consumerism Solutions™ I September/October 2012 3

I N S I D EFEATURES

COMING UP NEXT: The Institute for HealthCare Consumerism and its official publication, HealthCare Consumerism Solutions, present the 2012 HealthCare Consumerism Superstars. The annual awards issue showcases the top innovative professionals in health care and benefit management, who go the extra mile as creative problem solvers in the arena of health care consumerism. This year also debuts the HR Visionary of the Year Award, sponsored by Transitions Optical Inc.ON THE COVER: An employee of Con-way Inc., an industry leader in the transportation and logistics industry, secures his payload prior to making deliveries. The driver is one of 28,500 the Ann Arbor, Mich., based company employs. With the majority of employees traveling across the country and some living in their trucks, it makes benefit communication to employees a huge challenge.

30 Rules of Engagement: Personalized Messaging Key to Getting Employees’ Attention

From mid October to December brokers are making their sales pitch and benefit managers are trying to educate their employees about the newest products coming down the pike. However, a lot of times these words, words, words, fall on deaf ears.

By Todd Callahan

39 Reducing Health Care Costs and Energizing Employees

In late 2010, facing a 60 percent price increase in its traditional health care plan, FitLinxx decided to move to a consumer-driven health plan (CDHP) with a health savings account (HSA). While that alone would have benefited the company, it was by combining an incentive-based health and wellness employee program with the CDHP that ultimately made the change a win-win for employees and for FitLinxx.

By Andrea Newman

35 How Targeted Employee Communication Can Increase CDHP Adoption Rates

Savvy employers appreciate the power of consumer-directed health plans (CDHPs). However, these plans still haven’t achieved significant traction. A widening group of experts believes this failure is a function of ineffective education, impacted by low health plan literacy and insufficient consumer engagement. So how can employers better educate and engage their employees to make better health care decisions?

By Roger Travis

4 September/October 2012 I HealthCare Consumerism Solutions™ I www.TheIHCC.com

6-7 What’s Happening at The Institute

8 Editor and Publisher’s LetterIt’s Never too Early to Start Thinking About IHC FORUM 2013

11 Guest Commentary Ways ObamaCare Will Change Your Health Care

By Nick Tate

12-14 CDHC Solutions FORUM West Review

15 Save the Date

16-19 People on the Move

16-18 Briefs/Innovations

Health 2.0

Selection

46 Who’s Who Profile

50 Resource Guide/Ad Index

21 Regulatory & ComplianceDetermination of Full-time Employees under PPACA

By Ron Bachman

23 Private ExchangesThe Future Health Insurance Purchasing Model Has Arrived

By Nick Severino

25 Rewards & IncentivesFinancial Incentives: The Desired ‘Carrot’ for Healthy Behavior Change

By Tom Abshire

27 Population Health ManagementAnalytic Strategies that Drive Cost, Quality and Wellness Improvement

By Pete Wagner

29 Benefit CommunicationsThe ROI for Engaging Employees: Five Steps for a Successful Wellness Program

By Connie Gee

43 Ask the BrokerThe Future of Employer’s Role in Health Insurance

By Josh Hilgers

44 Executive SpotlightPaul Amos II: The Man Behind the Duck

By Todd Callahan

I N S I D E DEPARTMENTS

EventsThe 2013 IHC FORUM Eastwww.theihccforum.comFor a fourth year in a row, IHC FORUM East returns to the Cobb Galleria Centre in Atlanta on May 9-10, 2013. The only conference series 100 percent dedicated to innovative health and benefit management has an expanded preconference selection, 24 informative breakout sessions and five general sessions featuring the top innovative thought leaders in this health care consumerism megatrend. The theme for the 2013 conference series is “Making HealthCare Consumerism Work.” Registration is now open. Come LEARN, CONNECT and SHARE with the top thought leaders in the rapidly growing health care consumerism megatrend.

Become a Member and Reap the RewardsHave you become a member of The Institute for HealthCare Consumerism (www.theihcc.com) yet? Why wait? Visit The IHC website today and sign up for a membership. Got a story to tell about an innovative health and benefit program or best practices in health care consumerism? Share it with fellow members of The Institute or post a blog at www.theihcc.com. Members of The IHC also receive special discounts to attend Institute events, such as IHC FORUM.

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At TSYS Healthcare®, we put people at the center of payments to drive employee and dependent participation and individual healthcare accountability in four major ways:

Using modern communication tools to boost program enrollment Rewarding consumers that make wiser lifestyle choices

Offering reminders on protocol for preventative and chronic care Giving consumers more cost effective alternatives for care

Known for our elite levels of customer service and a long-term commitment to the industry, TSYS Healthcare is focused on lasting relationships and enabling people-centered payments.SM

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TSYS® is a federally registered service mark of Total System Services, Inc.

WHAT’S HAPPENING AT THE INSTITUTE?members speak out


spotlight

John Mackey, Co-founder and

Co-CEO Whole Foods

Whole Foods Co-founder and Co-CEO John Mackey is a zealot when it comes to the concept of health care consumerism. It is one of the reasons he was honored as the recipient of the inaugural John J. Robbins Senior Memorial Leadership Award in 2011.

An avid blogger and supporter of free market principles and empowerment, Mackey has instituted his beliefs in a robust HPSOR\HH�EHQH¿W�SDFNDJH��+H�LV�RSSRVHG�WR�WKH�JRYHUQPHQW�takeover of the health care system and is putting the decision-making power back in the hands of the individual, believing that strategy will help lower health care costs for everyone.

At Whole Foods, employees are eligible for a personal wellness account, which works similar to a health savings account �+6$��(PSOR\HHV�DUH�HOLJLEOH�IRU�WKH�DFFRXQW�DIWHU��

service hours. This company-funded account helps cover the costs of out-of-pocket allowable health care expenses. Employees are able to access the account through a special debit card and any of the unused funds are rolled over at the end of the year.

To learn more about this year’s Superstar Awards and to nominate someone please visit www.theihcc.com. 7KH�+HDOWK&DUH�&RQVXPHULVP�6XSHUVWDU�2012 issue will be released in December.

THE CEO’S DESK The industry is currently at a tipping point where we’re

seeing the rapid adoption of health care consumerism across the marketplace regardless of health care law developments.

Within The Institute for HealthCare Consumerism you will find yourself at the forefront of the latest updates regarding health care law and how it may or may not impact your business and the industry as a whole. All of this is happening within our 24-7, collaborative online environment where all facets of this industry are currently learning, connecting and sharing.

If you’re reading this magazine and have not yet signed up for your membership to The Institute for HealthCare Consumerism online, you’re missing out on being part of the one place that aggregates all stakeholders within the health and benefits management industry and allows you to connect with your peers, brokers, advisors, consultants and solution providers with a quick log-in.

Through articles, white papers, surveys, member contributed blog posts, forum discussions, video content and HealthCare Consumerism Radio, you’ll immediately benefit from a collaborative environment that speaks to health care consumerism related growth, best practices and pain points.

Sign up today for your Membership to The Institute for HealthCare Consumerism at: theihcc.com/membership

Sincerely,

Doug Field Founder & CEO, The Institute for HealthCare Consumerism Publisher, HealthCare Consumerism Solutions Magazine

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WHAT’S HAPPENING AT THE INSTITUTE?online exclusives

events

Wal-Mart Moves Health Care Forward Again Wal-Mart’s sheer size makes almost any of their initiatives newsworthy. That said, despite

being a lightning rod for FULWLFLVP�RQ�HPSOR\HH�EHQH¿�WV�DQG�KHDOWK�care, it has introduced initiatives with far-reaching impacts. Its generic drug program began in September 2006—more than 300 prescription drugs for $4/month or $10 for a 90-day supply—and was widely emulated, disrupting retail drug markets and JHQHUDWLQJ�LPPHQVH�VRFLDO�EHQH¿�W��,PDJLQH�WKH�GLIIHUHQFH�LW�PDGH�to a lower middle class diabetic who had been paying more than $120 per month for medications, and suddenly could get them for about $24. Wal-Mart announced “enrolled associates”—covered workers and their family members—needing heart, spine or transplant surgeries could receive care with no out-of-pocket cost at six prominent health systems around the country…

Oregon Wellness Program Differs From Other States, Garners High Participation Rate Oregon state workers might not love

paying on their health insurance premiums, which started this year, but it might be of some comfort to realize that the premiums Oregon workers pay are considered a reward in South Dakota. 6RXWK�'DNRWD�LV�RQH�RI��VWDWHV�WKH�3XEOLF�(PSOR\HHV¶�%HQH¿�WV�%RDUG�H[DPLQHG�WR�¿�JXUH�RXW�KRZ�WR�GHVLJQ�LWV�RZQ�ZHOOQHVV�plan, and workers there pay premiums of about $1,325 per year, or $110 per month. If they complete their wellness program, they FDQ�EULQJ�WKDW�GRZQ�WR�DERXW��SHU�PRQWK«�

Some Employers Offer Aid to Retirees After Cutting Their Health Insurance In the past 20 years, the number of companies that provide retiree health coverage has dropped

GUDPDWLFDOO\��OHDYLQJ�VHQLRUV�ZLWK�WKH�GLI¿�FXOW�WDVN�RI�FKRRVLQJ�DPRQJ�D�YDULHW\�RI�SODQV�WR�VXSSOHPHQW�WKHLU�0HGLFDUH�EHQH¿�WV��,W�LV�D�FKRLFH�WKDW�FDQ�EH�FRQIXVLQJ�DQG�KDV�ODUJH�¿�QDQFLDO�implications. but a move by some employers is softening the blow. They are contracting with companies that operate insurance marketplaces, called exchanges, where Medicare-eligible retirees can enroll in plans to replace what they used to get from the employer….

N.C. Blues Teams With Walgreens on Telehealth blue Cross and blue Shield of North Carolina, Durham, is offering telehealth services

to its employees through a partnership with Walgreens Take &DUH�+HDOWK�6\VWHPV�DQG�WHOHKHDOWK�FRPSDQ\�$PHULFDQ�:HOO��The health insurer, which has thousands of employees in North Carolina, said in a news release the program will allow it to offer more convenient and cost-effective care. Close to 40 percent of N.C. blues employees are enrolled in a consumer-driven health savings account plan….

DISCUSSIONS Employers Opt for Medical Tourism-RKQ�*RRGPDQIn priceless, I hazarded a guess that employers could cut the cost of hospital care in half by engaging in medical tourism. It’s a variation on what is sometimes called “value-based purchasing” or “reference pricing.” In its pure form, the employer picks a low-cost, high quality facility and covers all costs there. If the employee chooses another hospital, the employee must pay the full extra cost of the more expensive choice. In priceless, I argued that to take full advantage of the opportunities available, the patients must be willing to travel.

Health Care and You(UQLH�+DUULVWith all the debate over the election and over the ACA and whose going to win and repeal or uphold what when, I thought it might be nice to take a step back from the SROLWLFDO�WXUPRLO�ZH�¿�QG�RXUVHOYHV�LQ�DQG�WDON�MXVW�DERXW�WKH�QDWXUH�RI�KHDOWK�FDUH�DQG�VSHFL¿�FDOO\�KHDOWK�LQVXUDQFH�LQ�the U.S.

The Health Care Debate'DYLG�:LOOLDPV-XVW�¿�QLVKHG�ZDWFKLQJ�WKH�3UHVLGHQWLDO�GHEDWH��,W�VHHPV�the emerging consensus is that Romney was strong DQG�DJJUHVVLYH�ZKLOH�2EDPD�ZDV�SUHWW\�À�DW�IRRWHG��1RW�discussed yet is the fact that it’s well past time to put Jim /HKUHU�RXW�WR�SDVWXUH��+H�ZDV�FRPSOHWHO\�LQHIIHFWLYH�DQG�LQ�particular let Romney grab much of the airtime.

Follow us on Twitter:Twitter.com/The_IHC

Join the discussion in LinkedIn Group: HealthCare Consumerism FORUM by IHC

Join our Facebook Group:The Institute for HealthCare Consumerism

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2013Register Now and SaveThe calendar may say 2012, but we are already planning for our Forum conference series in 2013. Don’t miss the opportunity to be at the forefront of the continued growth of health care consumerism. Registration is now open for IHC FORUM East in Atlanta on May 9-10. Register today to take advantage of Early Bird rates.

May 9-10 Cobb Galleria Centre Atlantawww.theihccforum.com

LEARN. CONNECT. SHARE.

As we close the book on a successful 2012 IHC FORUM season, which saw more than 700 combined attend our events, we turn our attention to 2013 and anticipate even larger crowds for our East Coast and West Coast events.

As the health care consumerism megatrend continues to gain momentum, The Institute for HealthCare Consumerism continues to be the destination for employers trying to get a grip on changing legislation, compliance issues with the health care law, and more importantly, trying to curb escalating health care costs.

In fact, employers are not only coming to the forums to LEARN about the latest trends and best and better practices in health and benefit management, they also are becoming part of the program.

Since its creation in September 2011, the IHC has focused on being the online destination where people can come to learn connect and share about health care consumerism. At IHC FORUM West in Las Vegas on Sept. 6-7, employers, brokers and health plan providers shared the stage in SHARE Sessions.

Of the 24 breakout sessions, five were titled SHARE Sessions, with three featuring employers discussing rules of engagement, development of a wellness program and how to take the first steps on the road to consumerism.

The more than 300 attendees at FORUM West, held at the Red Rock Resort, Spa & Casino, flocked to these informative and interactive SHARE Sessions. The panelists featured employers from RJ Young Company, Staples, Pitney Bowes, Boeing and many others.

This magazine features highlights from one of the SHARE Sessions, which showcased best and better practices in effectively engaging and communicating with your employee population.

“It was a pleasure to share our experiences with consumer-driven health care as a panelist, the high-level of participation was great,” said RJ Young Chief Financial Officer Sam Shallenberger, a participating panelist.

The IHC is finalizing it show for FORUM East in Atlanta on May 9-10 at the Cobb Galleria Centre in Atlanta. This is the fourth year in a row we have held our event at this venue.

Registration is open at www.theihccforum.com. You also can submit proposals and a call for speakers by contacting a member of The IHC staff.

Final Call for Superstar NominationsThe deadline is fast approaching to submit your nominations for our upcoming HealthCare

Consumerism Superstars 2012 issue. The magazine will be published in December, and the deadline for nominations is the end of October.

This year we will be debuting the HR Visionary of Year Award, which is sponsored by Transitions. Other awards for the annual issue are: John J. Robbins Senior Memorial CEO Leadership Award; CEO Leadership Award; Most Innovative Plan Design Award; Most Effective Plan Implementation Award; Most Innovative Employee Education/Communication Award; Most Innovative Employee Empowerment Award; Most Effective Population Health & Wellness Award; Public Policy Leadership Award; Most Effective Solution Provider Award; Most Innovative Partner-Consultant Award and Most Innovative Broker Award.

Time is quickly running out, visit www.theihcc.com to nominate your health care consumerism superstar today.

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Todd CallahanEditorial [email protected]

Doug FieldCEO/[email protected]

L E T T E R EDITOR & PUBLISHERwww.theihcc.com

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WHAT SHOULD YOUR BENEFITS

LOOK LIKE? THE ANSWER

CAN BE FOUND IN YOUR

COMPANY’S DNA.Your company or organization is like no other. What about your benefits? At Cigna, our philosophy is simple: we approach each employer and its employees on an individual basis. It’s a custom approach designed to help keep your workforce healthy and reduce costs. Lower your medical cost trend by up to 16% in the first year with one of Cigna's consumer driven health plans — delivering sustainable savings year over year*. Healthier employees and a healthier bottom line. That’s in every company’s DNA.

Visit us at Cigna.com.

“Cigna” and “Cigna.com” are registered service marks and the “Tree of Life” logo and “GO YOU” are service marks of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided by such operating subsidiaries, including Connecticut General Life Insurance Company and Cigna Health and Life Insurance Company, and not by Cigna Corporation. 859400 08/12 © 2012 Cigna

*Cigna Choice Fund Sixth Annual Experience Study, February 2012


In the two years since it was signed into law, the Patient Protection and Affordable Care Act has generated literally millions of news reports and millions of hits on search engines. Yet, after all this time—and all those words—many Americans are still

wondering: What’s in it for me and how will it change my health care?But one thing is certain: ObamaCare will restructure the way health care

is delivered in significant ways we will all feel. Change is coming your way. In fact many provisions are already in place,

or soon to roll out. Here are the following five key ways that will alter health care for many Americans.

1. Medicare ChangesUnder ObamaCare Medicare reductions would add up to $716 billion in

10 years, according to the nonpartisan Congressional Budget Office. That figure is identical to Paul Ryan’s 2013 budget proposal. Health care experts believe those reductions will largely leave Medicare unchanged for Americans 55 and older. But the real changes come in 2022. Predictably perhaps, Republicans and Democrats have different ideas about how to preserve Medicare down the road.

Those reductions in reimbursement to hospitals, insurers and the Medicare Advantage program (by about $68 less per month, according to the Congressional Budget Office) could lead to cuts in benefits and services for some seniors, even though ObamaCare does not specify what they might be.

Medicare changes also close the so-called “donut hole” in drug coverage, giving seniors a break on their out-of-pocket costs for medications. But other changes could occur to Medicare as a result of the new health care law that could affect their care and costs.

2. Price ControlsObamaCare aims to cover uninsured Americans by expanding Medicaid

and the “individual mandate” requiring everyone to have insurance or pay a tax. Those moves could hold down health care costs over time because many of the 37 million uninsured Americans seek care through hospital ERs for dire problems that are more costly to treat than prevent or manage (such as heart attacks, infections and complications from chronic conditions).

Costs are now borne by taxpayers and people with insurance.ObamaCare proponents have argued people who have insurance are

more likely to work with their doctors to manage chronic conditions – such as diabetes, heart disease and cancer—in ways that are less expensive up front than hospital care and may help head off serious problems down the road.

But since the law’s signing in 2010, costs and premiums have been increasing. Health insurers also have projected premiums will continue to rise—at least 2-3 percent per year—and nothing in the law bars insurance companies from passing along those increases to policy holders.

But the true acid test may be found in Massachusetts. Under the RomneyCare plan, the template for ObamaCare, signed into law in 2006, the number of uninsured residents dropped to the lowest level in the country (3 percent), but insurance premiums have risen to the highest cost of any state in the nation for a family of four, according to the Commonwealth Fund.

3. Doctor PracticesOne unanswered question about ObamaCare that could affect consumers:

Will the law drive changes in doctor practices that could worsen physician shortages?

Polls of doctors suggest the answer may be yes. A survey of 2,400 physicians conducted in 2010 for the Physicians Foundation found 40 percent would “retire, seek a non-clinical job in health care or seek a job unrelated to health care” during the next three years. Investors Business Daily predicted as many as 360,000 physicians could leave the profession, based on a 2009 forecast survey of 1,300 doctors.

ACA supporters have argued the survey is not a true measurement of physician sentiment, since it came at the height of national debate over ObamaCare.

But the truth is no one can predict how the medical profession may respond to the coming changes. One thing is clear, however: the nation is already experiencing a doctor shortage.

4. Unwritten ProvisionsSome impacts of the new law are unpredictable simply because many

provisions have yet to be written and Congress must still authorizing funding for some of them.

For instance, federal health officials have yet to identify “essential health benefits” that insurers will be required to provide. Although experts expect those benefits will be comparable to what is now offered through typical employer-based health plans (that now cover about 150 million Americans), the details have not been determined. It’s also unclear how effectively the states—or federal government—will be in expanding Medicaid and creating new “health care exchanges” designed to allow millions to purchase affordable, high-quality individual plans.

5. Independent Payment Advisory BoardOne controversial aspect of ObamaCare involves the creation of a

presidential commission called the Independent Payment Advisory Board (IPAB). This board of 15 experts—chosen by the president and approved by the Senate—will be empowered to cut Medicare spending and make other health care decisions independently, unless counteracted by a three-fifths “super-majority” vote in Congress.

The driving idea behind the IPAB’s creation is the board would be able to make tough budgetary decisions that might be politically difficult for Congress or the president to implement (such as additional Medicare reductions). But because the IPAB won’t be elected, critics argue the board could wield enormous powers and increase government control over of the nation’s health care system.

As is true with many aspects of ObamaCare, the devil will be in the details of the law’s implementation. And, like the IPAB itself, ObamaCare is very much a work in progress.

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BY NICK TATEAWARD-WINNING JOURNALIST & EDITOR

GUEST COMMENTARY

A crowd of more than 300 human resources profession-als, C-level executives, health

insurance brokers and solution providers arrived at the Red Rock Resort LQ�/DV�9HJDV�RQ�6HSW��DQG�HQMR\HG�D�GD\�DQG�D�KDOI�RI� OHDUQLQJ�� FRQ-QHFWLQJ�DQG�VKDULQJ�DERXW� WKHLU� MRXUQH\� WR�KHDOWK�FDUH�FRQVXPHULVP�DW�7KH�,QVWLWXWH�IRU�+HDOWK&DUH�&RQVXPHULVP¶V��IRUPHUO\�&'+&�6ROXWLRQV��FORUM West conference.

In its second year hitting the West Coast, the event continued to be the only national conference solely dedicated to innovative health and EHQH¿W� PDQDJHPHQW�� 7KLV� \HDU¶V� WKHPH�� ³7KH� -RXUQH\� WR� +HDOWK&DUH�Consumerism,” purposed to help businesses of all sizes navigate the ever-VKLIWLQJ�KHDOWK�DQG�EHQH¿W�ODQGVFDSH�DQG�DUULYH�DW�FRVW�VDYLQJ�VROXWLRQV�

+HDOWK�FDUH�FRQVXPHULVP��LQ�FRQWUDVW�WR�WUDGLWLRQDO�HPSOR\HU�VSRQ-sored health plans, involves putting health care decision making and pur-chasing power into the hands of employees. This may include the adoption RI�KHDOWK�VDYLQJV�DFFRXQWV��+6$V��ÀH[LEOH�VSHQGLQJ�DFFRXQWV�DQG�FRUSR-

rate wellness programs—all of which have been proven to cut health care costs and boost employee well-being. FORUM attendees were

given insights on how to implement these consumer-driven solutions, effectively communicate the policy changes to their employee consumers and comply with current health care laws.

7UXH� WR� WKH� ,+&¶V�PRWWR�� DWWHQGHHV�KDG� WKH�RSSRUWXQLW\� WR� ³OHDUQ��connect and share” with industry professionals from across the country. ,+&�(GLWRULDO�$GYLVRU\�%RDUG�&KDLUPDQ�5RQ�%DFKPDQ�RSHQHG�WKH�HYHQW�and shared the stage with Dr Wendy Lynch, co-director of Altarum Center IRU� &RQVXPHU� &KRLFH� LQ� +HDOWK� &DUH� DQG� 'U�� -RKQ� 5H\QROGV�� IRUPHU�SUHVLGHQW�RI�+HDOWKFDUH�6ROXWLRQV�ZLWK�),6��ZKR�ZDV�DSSRLQWHG�SUHVLGHQW�and CEO of Cielostar.

7KH�WULR��DORQJ�ZLWK�,+&�)RXQGHU�DQG�&(2�'RXJ�)LHOG��HVWDEOLVKHG�WKH�WRQH�IRU�WKH�HYHQW��DV�WKH�DWWHQGHHV�KLW� WKH� MDFNSRW�ZKHQ�LW�FDPH�WR�learning connecting and sharing about health care consumerism.

7KHUH�DOVR�ZHUH� IDPLOLDU� IDFHV�WDNLQJ�WKH�VWDJH� IRU� WKH�¿YH�JHQHUDO�sessions, including former policy advisor to president George W. bush, 5R\�5DPWKXQ��OHJDO�H[SHUW�-RKQ�+LFNPDQ��-RKQ�<RXQJ��VHQLRU�YLFH�SUHVL-dent of consumerism for Cigna, population health management expert Dr. Dee Edington, Jon Comola, and Don Weber.

“Every year, we strive to bring value by featuring the foremost inno-vators in the health care consumerism space,” Field said.

In addition to familiar faces, attendees got to learn, connect and share with other established thought leaders in the health care consum-erism space such as: Adam bosworth, CEO and founder of Keas; Chief 0HGLFDO�2I¿FHU��'U��&LQG\�+DLQHV��RI�+HDOWK'D\��:DOO\�*RPDD��SUHVLGHQW�RI�$&$3�+HDOWK��3UDYHHQ�0RRJDQXU��&22�RI�:LVHU7RJHWKHU� DQG�'HQD�%UDYDWD��PHGLFDO�GLUHFWRU�RI�&DVWOLJKW�+HDOWK�

Another popular session, which proved again to be informative, was WKH�HPSOR\HU�SDQHO�JHQHUDO�VHVVLRQ��ZKLFK�ZDV�WLWOHG��³:KDW�+HDOWK�&DUH�&RQVXPHULVP�0HDQV�WR�<RX�´�7KLV�SDQHO�IHDWXUHG�-HQQLIHU�-XQJ��GLUHFWRU�RI�EHQH¿WV�IRU�%ULGJHSRLQW�(GXFDWLRQ��PDNLQJ�KHU�GHEXW�DORQJ�ZLWK�6WHYH�/DIIHUW\��ZKR�LV�WKH�GLUHFWRU�RI�KHDOWK�EHQH¿WV�IRU�7DUJHW��'LDQD�$QGHUVHQ��VHQLRU�YLFH�SUHVLGHQW�RI�+5� IRU�=LRQV�%DQNFRUSUDWLRQ�� URXQGHG�RXW� WKH�¿QDO�JHQHUDO�VHVVLRQ�RI�WKH�HYHQW�

MORE THAN 300 ON THE ROAD TO HEALTHCARE CONSUMERISM: LEARNING, CONN ECTING SHARING

BY TODD CALLAHAN » EDITORIAL DIRECTOR THE INSTITUTE FOR HEALTHCARE CONSUMERISM


LEARN.

Employees Not Only Attended FORUM, They Participated in Program

,W� LV� QR� VHFUHW� HPSOR\HUV� ÀRFN� WR� RXU� HYHQWV�� DQG� )2580� :HVW�in Las Vegas continued the trend, as City of Las Vegas, Station Casinos and Target paid a visit to the Red Rock to learn, connect and share. Some of the employers also became part of the program, including Sam 6KDOOHQEHUJHU�� WKH�&)2�RI�5-�<RXQJ�� WKH�¿IWK� ODUJHVW� LQGHSHQGHQW�RI¿FH�products dealer in the United States. Shallenberger participated in one of WKH�¿YH�VKDUH�VHVVLRQV� LQ�WKH�ZRUNVKRS�WUDFNV��DQG�KH�DOVR�KDG�D�FKDQFH�to connect during the ample network breaks with our 36 venders in the grand ballroom.

“I made valuable connections at the forum, including providers of an employee offering for my next renewal,” Shallenberger said. “It was a pleasure to share our experiences with consumer-driven health are as a panelist. The high-level of participation was great.”

7DUJHW�+HDOWK��D�JROG�VSRQVRU�RI� WKH�HYHQW��DOVR�KRVWHG�D�/HDJXH�RI�Leaders dinner where the top thought leaders met to discuss the state of the health care consumerism megatrend and ways to increase employee engagement in becoming better consumers of health and wellness.

During the dinner conversation, guests connected on three questions: �� +RZ�FDQ�ZH�LPSURYH�KHDOWK�OLWHUDF\"�� +RZ�FDQ�ZH�VWUXFWXUH�UHZDUGV�WR�GULYH�FRQVXPHU�HQJDJHPHQW��DQG�� +RZ�GR�ZH�ZRUN� WRJHWKHU� WR�PDNH� WKH�KHDOWK� FDUH� V\VWHP�PRUH�

HI¿FLHQW� DQG�PD[LPL]H� WKH� YDOXH� RI�LQYHVWPHQW"

The valued takeaway points were:�� Simplify health care language�� Leverage technology to help educate

consumers about health care, and�� provide health care professionals with

tools to help them interact with consumers.

,Q�DGGLWLRQ�WR�)2580��WKH�,+&�SDUWQHUHG�ZLWK� &DVWOLJKW� +HDOWK� WR� FR�VSRQVRU� WZR�roadshows, which involved breakfast and a discussion panel, focusing on consumerism and WUDQVSDUHQF\��7KH�¿UVW�EUHDNIDVW�DQG�GLVFXVVLRQ�event was held Oct. 2 at The Westin Minneapolis

and more than 40 attended the inaugural event.participating in the informative and interactive discussion panel in

0LQQHDSROLV�ZHUH��%UDYDWD��<RXQJ��$RQ�+HZLWW�9LFH�3UHVLGHQW�%DUE�9DVNR��Jim Chase, the president of MN Community Measurement and Michelle 0XUUD\��WKH�EHQH¿WV�PDQDJHU�IRU�+XEEDUG�%URDGFDVWLQJ�

7KH�VHFRQG�URDGVKRZ�ZDV�KHOG�2FW��DW�WKH�+LOWRQ�%RVWRQ�%DFN�%D\�KRWHO��7KH�GLVFXVVLRQ�ZDV� WLWOHG�³7UDQVSDUHQF\� LQ�+HDOWK�&DUH�±�+RZ�WR�Empower the Individual” and more than 20 attended the event.

7KH� IHDWXUHG� SDQHOLVWV� ZHUH�� <RXQJ�� 3HWHU� +D\HV�� SULQFLSDO� RI�+HDOWKFDUH�6ROXWLRQV��6FRWW�0DWWKHZV��VHQLRU�GLUHFWRU�RI�SURGXFW�PDUNHWLQJ�IRU� &DVWOLJKW� +HDOWK� DQG� 0DUJXHULWH� 'UHVVHU�� GLUHFWRU� RI� LQIRUPDWLRQ�V\VWHPV�DQG�GDWD�DQDO\VLV�IRU�0DVVDFKXVHWWV�+HDOWK�4XDOLW\�3DUWQHUV�


MORE THAN 300 ON THE ROAD TO HEALTHCARE CONSUMERISM: LEARNING, CONN ECTING SHARING

BY TODD CALLAHAN » EDITORIAL DIRECTOR THE INSTITUTE FOR HEALTHCARE CONSUMERISM

CONNECT.


Ready to cut health care costs, engage your employees and get the skinny on current health care legislation? Don’t miss another opportunity to LEARN. CONNECT. SHARE. Register today for IHC FORUM East in Atlanta on May 9-10. www.theihccforum.com

Share Sessions Have Successful Debut at Las Vegas FORUM

Making its debut at FORUM West 2012, Share Sessions received much UHFRJQLWLRQ�DQG�VXFFHVV��/HYHUDJLQJ�RII�RI�,+&¶V�PLVVLRQ�WR�OHDUQ��FRQQHFW��share, Share Sessions provided an authentic collaborative environment

where employers such as boeing, Staples, Con-Way, Tesla Motors, pitney bowes; and health plan SURYLGHUV� &LJQD�� +XPDQD� DQG�8QLWHG+HDOWKFDUH� SURYLGHG� D�round-table feel for attendees as they engaged with these thought-leaders on a conversational level; promoting education, and even networking.

“For this FORUM we wanted

something different, hence the creation of Share Sessions,” Field said. “Attendees had the chance to sit and talk with employers who are making FRQVXPHULVP� ZRUN�� DQG� ,� DP� FRQ¿GHQW� WKDW� RXU� NH\QRWH� VSHDNHUV� DQG�workshop leaders left attendees with valuable takeaways and actionable solutions that’ll have an immediate impact on their companies’ bottom lines. All in all, the debut of our Share Sessions was a huge success, as well as our entire rundown; I’m looking forward to FORUM East 2013.”

SHARE. “All in all, the debut of our Share Sessions was a huge success, as well

as our entire rundown; I’m looking forward to FORUM East 2013.”

2013EAST & WEST Formerly CDHC Solutions FORUM

SAVE THE DATE

ATLANTACobb Galleria Centre

TBA 2013

FieldMedia LLC is the parent company to The Institute for HealthCare Consumerism, THEIHCC.COM, HealthCare Consumerism Solutions magazine, EmployersWeb.com, and The Institute for HealthCare Consumerism FORUM (formerly CDHC Solutions Forum). 292 South Main St., Ste 400, Alpharetta, GA 30009

JOIN THE INSTITUTE AND GET A DISCOUNT TO THE FORUMSWWW.THEIHCCFORUM.COM


PEOPLE ON THE MOVEBRIEFS

Aflac Launches Vision Now Enhanced Vision Insurance Plan

$ÀDF�� WKH� 1R�� SURYLGHU� RI� YROXQWDU\� DQG� JXDUDQWHHG�UHQHZDEOH�LQVXUDQFH� LQ� WKH� 8QLWHG� 6WDWHV�� DQQRXQFHG� WKH� ODXQFK� RI� $ÀDF� 9LVLRQ�Now®. The new individual vision insurance plan will offer enhanced EHQH¿WV� ZLWK� LQFUHDVHG� EHQH¿W� SD\PHQWV� IRU� UHJXODU� H\H� H[DPLQDWLRQV�and vision correction procedures with no premium increase.

Vision impairment is a serious public health concern among adults, affecting more than 2.9 million people in the U.S. In fact, more than 150 million Americans use corrective eyewear to compensate for refractive errors, spending more than $15 billion each year on eyewear. Maintaining healthy vision goes beyond purchasing necessary eyewear. Approximately ��UHIUDFWLYH�VXUJLFDO�SURFHGXUHV�ZHUH�SHUIRUPHG�LQ��DORQH�LQ�the U.S., highlighting how critical it is to take preventative steps for eye health.

,Q� UHVSRQVH� WR� FXVWRPHUV¶� QHHGV�� $ÀDF� UHFHQWO\� LQFUHDVHG� WKH� (\H�([DPLQDWLRQ� DQG� 9LVLRQ� &RUUHFWLRQ� %HQH¿WV�� 7KH� (\H� ([DPLQDWLRQ�%HQH¿W�QRZ�SD\V�� IRU� RQH� H\H� H[DPLQDWLRQ�SHU� FRYHUHG�SHUVRQ��SHU�policy year.

Nine Small Iowa Communities Named Blue Zones Project Demonstration Sites; 12 Large Towns Finalists for Selection

:HOOPDUN�%OXH�&URVV� DQG�%OXH�6KLHOG� DQG�+HDOWKZD\V� DQQRXQFHG�QLQH� DGGLWLRQDO� FRPPXQLWLHV� KDYH� EHHQ� QDPHG� DV� %OXH� =RQHV� 3URMHFW�GHPRQVWUDWLRQ� VLWHV� LQ� ,RZD�� 7KHVH� FRPPXQLWLHV� DUH� WKH� ¿UVW� ZLWK�populations of less than 10,000 citizens to be named and include: Algona, $XGXERQ��'HFRUDK�� )DLU¿HOG��+DUODQ�� 2VDJH�� 5HG�2DN�� 6SLULW� /DNH� DQG�Woodbine.

7KHVH� FRPPXQLWLHV� MRLQ� &HGDU� )DOOV�� 0DVRQ� &LW\�� 6SHQFHU� DQG�:DWHUORR�� ZKLFK� ZHUH� QDPHG� LQ�0D\� DV� WKH� ¿UVW� %OXH� =RQHV� 3URMHFW��demonstration site communities in Iowa with populations greater than 10,000 citizens.

,Q� DGGLWLRQ� WR� WKH� VPDOO� FRPPXQLWLHV� WKDW� ZLOO� RI¿FLDOO\� EHJLQ�WKHLU� MRXUQH\� WRZDUG� LPSURYHG� ZHOO�EHLQJ�� ,RZD� FRPPXQLWLHV� ZLWK�populations of more than 10,000 citizens are moving forward in the VHOHFWLRQ� SURFHVV� WR� EHFRPH� %OXH� =RQHV� 3URMHFW� GHPRQVWUDWLRQ� VLWHV��These communities submitted applications in August in the second and ¿QDO� VHOHFWLRQ� URXQG� IRU� FRPPXQLWLHV� RI� WKLV� VL]H�� DQG� DOO� KDYH� EHHQ�GHHPHG�TXDOL¿HG� WR�SURJUHVV�DV�¿QDOLVWV��7KH�¿QDOLVWV� LQFOXGH��$OWRRQD��

burlington, Cedar Rapids, Clinton, Davenport, Dubuque, Iowa City, Marion, Muscatine, Ottumwa, Oskaloosa and Sioux City.

The selected communities will receive assistance from experts to develop and implement a blueprint for making permanent environmental, social and policy changes that transition people into healthier behaviors that can lead to longer, happier lives.

Specialty Pharmacies Positioned to Play Valuable Role in Growing ACO Marketplace

More than 100 new CMS Shared Savings accountable care RUJDQL]DWLRQV�KDYH�FRPH�RQOLQH�LQ��MRLQLQJ�DW�OHDVW�WKDW�PDQ\�$&2V�LQ�WKH�SULYDWH�VHFWRU�LQ�D�WHVW�RI�ZKHWKHU�D�IRFXV�RQ�WKH�KHDOWK�RI�D�GH¿QHG�population can improve health outcomes and lower health care costs. As ACO providers search for partners to achieve better population health, specialty pharmacies are positioned to collaborate and bring targeted expertise in ensuring drug regimens are properly managed—for better health outcomes and lower costs.

Spending on specialty drugs topped $50 billion in 2010, and is expected to represent 40 percent of health plan drug spending by 2020. 7KH�&HQWHU�IRU�0HGLFDUH��0HGLFDLG�6HUYLFHV�GH¿QHV�D�VSHFLDOW\�GUXJ�DV�one that costs more than $600 per month. Specialty drugs also may be GH¿QHG�E\� WKHLU�QDUURZ�XVH� WR� WUHDW� VSHFL¿F��PDLQO\� FKURQLF�� DQG�RIWHQ�rare conditions; special handling required; and the need for patient counseling in their use. With these highly specialized drugs comes the need for a more specialized pharmacy to manage the demanding clinical and patient safety aspects required for their safe and effective use.

Digital Insurance to Launch One of Nation’s First Private Insurance Exchanges for Small- to Medium-sized Businesses

:KLOH� WKHUH¶V� VLJQL¿FDQW� GLDORJXH� LQ� WKH� PDUNHWSODFH� IURP�FRPSDQLHV� GHYHORSLQJ� QHZ� EHQH¿WV� DSSURDFKHV� IRU� ODUJH� HPSOR\HUV��'LJLWDO� ,QVXUDQFH� �ZZZ�GLJLWDOLQVXUDQFH�FRP�� LV� ODXQFKLQJ� RQH� RI� WKH�¿UVW�SULYDWH� LQVXUDQFH�H[FKDQJHV� LQ� WKH�FRXQWU\� VSHFL¿FDOO\�GHVLJQHG� WR�DGGUHVV�WKH�QHHGV�RI�VPDOO��WR�PHGLXP�VL]HG�EXVLQHVVHV��60%��

As broker behemoths scramble to create private exchange strategies DQG� GH¿QHG� FRQWULEXWLRQ� EHQH¿WV� VWUDWHJLHV�� SULYDWHO\� KHOG� 'LJLWDO�� WKH�QDWLRQ¶V� ODUJHVW� DQG� PRVW� WHFKQRORJLFDOO\� DGYDQFHG� HPSOR\HH� EHQH¿WV�only agency, is rolling out a SMb solution supported by an infrastructure LW�KDV�VSHQW�PRUH�WKDQ�D�GHFDGH�EXLOGLQJ�DQG�UH¿QLQJ��

PEOPLE ON THE MOVEDavid Gregory

Denver Management Advisors Inc. Cielostar

Dr. John Reynolds

» » » » » »

Gregory

Reynolds

HEALTHCARE CONSUMERISM SOLUTIONS


Digital’s private exchange, in partnership with the Vermont Chamber RI� &RPPHUFH�� RIIHUV� D� GH¿QHG� FRQWULEXWLRQ� VROXWLRQ� WR� HPSOR\HUV��participating employers simply designate the amount they want to FRQWULEXWH� DQQXDOO\� WR� HDFK� HPSOR\HH¶V� EHQH¿WV� SDFNDJH� �D� ³GH¿QHG�FRQWULEXWLRQ´��DUUDQJH�SD\UROO�GHGXFWLRQ�DQG�WKHLU�ZRUN�LV�GRQH��

The exchange empowers employees to prioritize insurance needs and choose from an online marketplace the types of insurance and coverage that best meets their needs.

LifeVest Health Debuts Personal Health Investment Program at Health 2.0

� /LIH9HVW� +HDOWK� ,QF�� D� VWDUWXS� FRPSDQ\� GHGLFDWHG� WR� SURPRWLQJ�KHDOWK\� OLYLQJ� E\� RIIHULQJ� PDUNHW�GULYHQ� ¿QDQFLDO� LQFHQWLYHV� WR� XVHUV��ZDV� RQH� RI� HLJKW� FRPSDQLHV� VHOHFWHG� WR� SUHVHQW� DW� WKH� +HDOWK� �� )DOO�Conference in San Francisco.

/LIH9HVW� +HDOWK� ZDV� IRXQGHG� E\� &(2� -RQ� &RRSHU�� &72� %UDG�patterson and CSO Mike Logsdon. The three bring together a diverse UDQJH�RI�H[SHULHQFH�LQ�KHDOWK�FDUH��'XULQJ�+HDOWK��¶V�/DXQFK�6HVVLRQ��Cooper, patterson and Logsdon presented their new value-based health incentive program that works like a stock tied to your individual health, creating an innovative carrot and stick approach to improving health.

/LIH9HVW� +HDOWK� SDUWLFLSDQWV� HQWHU� LPSRUWDQW� KHDOWK� PHWULFV� DQG�select how much money to invest in their own health. Over the course of three months, users update their health data regularly. At the end, if their KHDOWK�KDV�LPSURYHG��WKH\�JDLQ�YDOXH�RQ�WKHLU�RULJLQDO�LQYHVWPHQW��+HDOWK�declines result in a loss of value.

/LIH9HVW� +HDOWK� DOVR� DQQRXQFHG� WKHLU� EHWD� SURJUDP� ZKLFK� DOORZV�anyone interested in the program to try it free of charge for charity by visiting their website at www.lifevesthealth.com.

Employers and health plans also can use the system to enhance wellness initiatives, adding their own incentives to the program as needed for each employee.

PHX Acquires NHBC3UHPLHU� +HDOWKFDUH� ([FKDQJH� �3+;�� ,QF�� DQQRXQFHG� WKDW� LW� KDV�

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1+%&�VSHFLDOL]HV� LQ� WKH�PDQDJHPHQW�RI�KHDOWK�FDUH�QHWZRUN�UHOD-tionships for a broad base of clients, including third party administrators, insurance companies, health maintenance organizations and self-funded

employer groups. Its product portfolio enables access to a myriad of QHWZRUNV�WKDW�FDQ�EH�FXVWRPL]HG�WR�¿W�WKH�EXVLQHVV�UXOHV�DQG�JHRJUDSKLF�coverage requirements of its clients while ensuring the deepest discounts available.

7KHVH�FDSDELOLWLHV�UHVXOW�LQ�VLJQL¿FDQW�UHGXFWLRQV�RI�KHDOWK�FDUH�FRVWV�DQG�PHDVXUDEOH�LQFUHDVHV�LQ�RSHUDWLRQDO�HI¿FLHQF\�IRU�LWV�FOLHQWV�

Teladoc Joins Blue Shield of California to Bring Tele-health Solution to 350,000 Members in California

7HODGRF�� WKH� QDWLRQ¶V� ¿UVW� DQG� ODUJHVW� WHOH�KHDOWK� SURYLGHU��announced a new health care initiative this year with blue Shield of California to provide tele-health services for California public Employees’ 5HWLUHPHQW�6\VWHP��&DO3(56��PHPEHUV��

7KURXJK�%OXH�6KLHOG�RI�&DOLIRUQLD¶V�+02�SODQV��&DO3(56�members now have around-the-clock access to Teladoc’s network of &DOLIRUQLD�EDVHG�� VWDWH�OLFHQVHG�� ERDUG�FHUWL¿HG� SK\VLFLDQV�� 7HODGRF�offers affordable health care consultations for routine medical issues via phone, any time, day or night, allowing members to save time and PRQH\��2QOLQH�YLGHR�LV�DYDLODEOH��D�P��WR��S�P��ORFDO�WLPH��VHYHQ�GD\V�a week.

During the last eight years, blue Shield has focused great attention on the unique needs of CalpERS, resulting in new innovative approaches to health care delivery such as Teladoc. Further innovations are constantly being developed and considered by blue Shield to extend the value of their health plans.

The service may be used when a member is unable to visit their GRFWRU�� VXFK� DV� DIWHU� RI¿FH� KRXUV�� DQG� LV� QRW� D� UHSODFHPHQW� IRU� WKHLU�primary care physician. Teladoc’s network of physicians treat non-emergency medical issues, such as allergies, bronchitis, pink eye, sinus problems and ear infection for adults and children. Teladoc physicians also may write short-term prescriptions for non-controlled substances if medically appropriate.

Health Insurance Brokers Partner with Zane Benefits to Offer New Defined Contribution Solutions

=DQH� %HQH¿WV�� WKH� OHDGHU� LQ� GH¿QHG� FRQWULEXWLRQ� KHDOWK� EHQH¿WV��announced a new broker partner program available to health insurance EURNHUV�WR�KHOS�WUDQVLWLRQ�VPDOO�EXVLQHVV�FOLHQWV�WR�GH¿QHG�FRQWULEXWLRQ�solutions. The program provides brokers with free ongoing training, sales

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PEOPLE ON THE MOVEBRIEFS

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and implementation support along with customized sales and marketing materials.

New studies predict U.S. businesses are gearing up to abandon WUDGLWLRQDO�KHDOWK�FRYHUDJH�LQ�IDYRU�RI�WKH�GH¿QHG�FRQWULEXWLRQ�PRGHO��$V�a result, health insurers are already dusting off their once-ignored indi-vidual market product lines to appeal to individuals as well as employees. And, businesses of all sizes are looking to health reimbursement arrange-PHQWV� �+5$V�� WR� FRQWURO� EHQH¿W� FRVWV� ZKLOH� NHHSLQJ� HPSOR\HH�PRUDOH�and retention up.

Experts predict group health insurance costs to hit an all-time high this renewal period due to key health care reform provisions taking effect. =DQH�%HQH¿WV¶�VROXWLRQ��RIWHQ�UHIHUUHG�WR�DV�D�GH¿QHG�FRQWULEXWLRQ�KHDOWK�SODQ�RU�+5$��DOORZV�DQ�HPSOR\HU�WR�QDPH�LWV�SULFH��5DWKHU�WKDQ�SD\LQJ�WKH�KLJK�FRVWV�WR�SURYLGH�D�VSHFL¿F�JURXS�KHDOWK�SODQ��D�³GH¿QHG�EHQH¿W´��HPSOR\HUV�LQVWHDG�¿[�WKHLU�FRVWV�E\�HVWDEOLVKLQJ�D�PRQWKO\�GROODU�DPRXQW��D� ³GH¿QHG� FRQWULEXWLRQ´�� WKDW� HPSOR\HHV� FKRRVH� KRZ� WR� VSHQG�� 0RVW�employees are able to buy individual policies for less than the monthly amount funded by the company. The allowance also can be used for eyeglasses, dental care and other medical expenses.

HealthNow New York Inc. Selects Inovalon’s Prospective Advantage Solution

Inovalon Inc., a leading provider of data-driven health care solutions, DQQRXQFHG� +HDOWK1RZ� 1HZ� <RUN� ,QF�� SDUHQW� FRPSDQ\� RI� %OXH&URVV�%OXH6KLHOG� RI�:HVWHUQ� 1HZ� <RUN� DQG� %OXH6KLHOG� RI� 1RUWKHDVWHUQ� 1HZ�<RUN�� KDV� H[SDQGHG� LWV� SDUWQHUVKLS� WR� LQFOXGH� ,QRYDORQ¶V� 3URVSHFWLYH�Advantage® solution.

Inovalon’s prospective Advantage solution combines advanced health care data analytics with coordinated patient and provider encounter facilitation and support to identify and proactively close gaps in quality, care, assessment, documentation and risk score accuracy. Analytics provide meaningful insight for all forms of patient outreach and intervention—from print materials and call center interaction, to web-enabled decision support platforms and wireless tablets for in-community member assessment optimization.

This data-driven approach helps health plans determine and achieve the right intervention for the right member, in the right venue, at the right time, resulting in improved quality and healthcare outcomes, as well as ¿QDQFLDO�SHUIRUPDQFH�

Evolution1 Named to 2012 Marcum Tech Top 40 List(YROXWLRQ�� KDV� EHHQ� QDPHG� WR� WKH� ¿IWK� DQQXDO� �� 0DUFXP�

Tech Top 40 list of the 40 fastest growing technology companies in Connecticut. Through the awards, Marcum LLp, one of the nation’s OHDGLQJ�DFFRXQWLQJ�DQG�DGYLVRU\�¿UPV��DQG�7KH�&RQQHFWLFXW�7HFKQRORJ\�&RXQFLO��&7&��UHFRJQL]H�WKH��IDVWHVW�JURZLQJ�WHFKQRORJ\�FRPSDQLHV�LQ�Connecticut based on revenue growth over the past four years.

Evolution1 is the nation’s largest electronic payment, on-premise, and cloud computing health care solution that administers reimbursement DFFRXQWV��LQFOXGLQJ�+6$V��+5$V��)6$V��9(%$V��35$V��DQG�:HOOQHVV�DQG�Transit plans. With its partners, Evolution1 saved its customers and their employees more than $2 billion in 2011 through annual health care cost reductions and tax savings. Additionally, Evolution1 saved its partners more than $43 million in annual operating costs through claim and payments automation.

FSAstore.com Closes More Than $2 Million FinancingFSAstore.com, the only e-commerce site exclusively stocked with

ÀH[LEOH�VSHQGLQJ�DFFRXQW��)6$��HOLJLEOH�SURGXFWV�DQG�VHUYLFHV��FORVHG�LWV�VHFRQG� URXQG�¿QDQFLQJ� RI�PRUH� WKDQ��PLOOLRQ�� 7KH�¿QDQFLQJ�� OHG� E\�Originate Ventures, includes investment from previous investors point Judith Capital and Columbia business School Lang Fund, as well as additional angel investors.

The funding will be used to accelerate sales, marketing and development initiatives, as the company continues to expand to meet growing consumer demand for its products and services. FSAstore.com HQDEOHV�FRQVXPHUV�ZLWK�ÀH[LEOH�VSHQGLQJ�DFFRXQWV� WR�XVH� WKHLU� WD[�IUHH�dollars to purchase more than 6,000 health care products and browse hundreds of services directly from the website. FSAstore.com partners GLUHFWO\�ZLWK�)6$�$GPLQLVWUDWRUV��73$V��WR�PDNH�D�ZLGH�UDQJH�RI�KHDOWK�products, tools, and services directly available to FSA holders.

“We are thrilled that Originate Ventures, a leading early stage inves-WRU� LQ� WKH� KHDOWK� FDUH� VHFWRU�� LV� MRLQLQJ� RXU� H[LVWLQJ� LQYHVWRUV� LQ� RXU� ODW-HVW� ¿QDQFLQJ� URXQG�� ZKLFK� ZLOO� SURYLGH� XV� ZLWK� WKH� UHVRXUFHV� QHFHVVDU\�to expand our operations to meet the rapidly growing demand for our products and services,” said Jeremy Miller, FSAstore.com founder and president.

Gov. Martin O’Malley Paul Fronstin

Employee Benefit Research Institute

DominiumTom Schulte

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Fronstin Scott

HEALTHCARE CONSUMERISM SOLUTIONS

PEOPLE ON THE MOVE BRIEFS


Affinity Health Plan Bertram “Bert” Scott

WorldOne

Kerry Hicks

WellPoint Inc. Angela F. Braly

Burnham Benefits Insurance Services

Scott Aston

Lockton

are Jennifer Maddux Christine Ferris Sarah Rossetti Bethany Greene

other key HR issues. Rossetti is now serving as an account manager in

Blue Cross and Blue Shield of Louisiana Wendy Bateman

Humana Inc. Dr. John Montgomery

MedecisionJerry Baker

CVS Caremark Alan Lotvin, M.D. to the

Content and Design AHIP—All Rights Reserved: © AHIP 2012

Educating your new employees about health insurance within their first year at your organization helps motivate and retain them. It can also bring them up to speed much more quickly and help them become more productive members of your sta! sooner.

Introducing Health Insurance 101: An Orientation"is online course provides your new employees with a basic foundation of health insurance knowledge. It’s broken into bite-sized modules making it easy for people to fit it into their busy lives. Students move through the materials at their own pace and in the sequence they choose, maximizing both interest and comprehension.

Make It Your Organization’s Orientation CourseIf your organization has unique training needs or you wish to supplement the course with your exclusive products and services, we will work with you to mold the course into one that’s designed specifically for your employees.*

* For bulk purchases only

Learn. Achieve. Succeed.www.ahip.org/[email protected]

Give Your New Employees a Healthy Start

Want to Know More?

For answers to your questions about the course curriculum, visit www.ahip.org/courses, contact our Support Team at 800.509.4422, or e-mail [email protected].

For questions about customization and bulk pricing, e-mail Lindsey Miranda Canaley at [email protected].


Who: An employer whose workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year.

When: beginning Jan. 1, 2014, employers with 50 or more full-time workers are required to provide health coverage or incur applicable penalties. At least through the end of 2014, employers may rely on the:

1. safe harbor method for ongoing employees,2. rule for new employees reasonably expected to work full-time,3. safe harbor method for variable hour and seasonal employees, and4. safe harbor based on Form W-2 wages.Employers will not be required to comply with any subsequent IRS

guidance that is more restrictive until at least Jan. 1, 2015.What: Determining the ppACA legally recognized number of full-

time employees is critical to establishing compliance with aspects of ppACA requirements and exposure to certain coverage penalties.

A full-time employee with respect to any month is an employee who is employed on average at least 30 hours of service per week. To determine the number of full-time workers can be complicated.

1. ³2QJRLQJ� HPSOR\HHV´� ±� WKRVH�who have been employed by the employer for at least one complete standard measurement period.

2. 1HZ� HPSOR\HHV´� ±� WKRVH� UHDVRQDEO\� H[SHFWHG� WR� ZRUN� IXOO�WLPH��(PSOR\HUV�ZLOO�QRW�EH� VXEMHFW� WR� D�SHQDOW\� IRU� IDLOLQJ� WR�offer coverage to employees for the initial three months of employment.

3. ³9DULDEOH�(PSOR\HHV´�±�WKRVH�IRU�ZKRP�LW�FDQQRW�EH�GHWHUPLQHG�that the employee is reasonably expected to work on average at least 30 hours per week.

4. ³6HDVRQDO�(PSOR\HHV´�±�DUH�WKRVH�ZKR�SHUIRUP�ODERU�RU�VHUYLFHV�on a seasonal basis, and retail workers employed exclusively during holiday seasons.

Executive Summary:The IRS has put out guidelines for the calculation of full-time

employees. It is not as easy as one might assume. In addition there are safe harbor and transition rules that apply.

There are two safe harbor options allowed when determining an employee’s full-time status:

1. Employers are given three months or, in certain cases, six months, without incurring a penalty, to determine whether a variable employee is a full-time employee.

2. $�³/RRN�EDFN�VWDELOLW\�SHULRG´��IURP�WKUHH�WR��PRQWKV��DOORZV�

an employer to determine whether the employee averaged at least 30 hours per week. If the employee were determined to be a full-time employee during the measurement period, then the employee would be treated as a full-time employee during a subsequent “stability periods.”

Potential Penalties:1. �� SHU� ZRUNHU� IRU� DOO� IXOO�WLPH� ZRUNHUV� �LQ� H[FHVV� RI� ��

for employers who fail to offer all full-time employees the RSSRUWXQLW\�WR�HQUROO�LQ�LWV�PLQLPXP�HVVHQWLDO�EHQH¿WV�

2. $3,000 per affected worker is for employers who offer minimum essential coverage that is not affordable to a worker and the worker elects to receive a premium subsidy tax credit

when purchasing coverage through a health insurance exchange. Coverage is considered affordable if the employee’s required contribution does not exceed 9.5 percent of the employee’s household income. The penalty is assessed only on those employees receiving a subsidy tax credit through an exchange.

$Q�HPSOR\HU�ZLOO�QRW�EH�VXEMHFW�WR�a penalty if the coverage offered to an

employee is affordable based on the employee’s Form W-2 wages. This is often referred to as the affordability safe harbor.

In addition, use of any of the safe harbor methods described above are not required, but optional.

Actions: Employers will need to calculate the number of full-time workers related to ppACA requirements. It may be necessary to consider employment contracts and work schedules during 2013 in preparation for this 2014 requirement. Employers will need to be in compliance or incur penalties. Employers should check with their compliance and legal teams, insurance brokers, agents, consultants and insurers in preparation for the changes to be implemented in 2014.

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7KH�LQIRUPDWLRQ�SUHVHQWHG�DQG�FRQWDLQHG�ZLWKLQ�WKLV�DUWLFOH�ZDV�VXEPLWWHG�E\�5RQDOG�(�� %DFKPDQ�� 3UHVLGHQW� � &(2� RI� +HDOWKFDUH� 9LVLRQ�� 7KLV� LQIRUPDWLRQ� LV� JHQHUDO�LQIRUPDWLRQ� RQO\�� DQG� GRHV� QRW�� DQG� LV� QRW� LQWHQGHG� WR� FRQVWLWXWH� OHJDO� DGYLFH�� <RX�VKRXOG�FRQVXOW�\RXU� OHJDO�DGYLVRUV�WR�GHWHUPLQH�WKH� ODZV�DQG�UHJXODWLRQV� LPSDFWLQJ�\RXU�EXVLQHVV�

Rnald E. Bachman FSA, MAAA, is president and CEO of Healthcare Visions Inc. He is a senior fellow at the Center for Health Transformation, the Georgia Public Policy Foundation, the Wye River Group on Health, and the National Center for Policy Analysis. Bachman is the chair of the editorial advisory board of !e Institute for HealthCare Consumerism and can be reached at [email protected].

Determination of Full-time Employees under PPACA

REGULATORY & COMPLIANCE

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HPSOR\HH¶V�)RUP�:��ZDJHV�

BY RONALD E. BACHMAN FSA, MAAACHAIRMAN EDITORIAL ADVISORY BOARD

THE INSTITUTE FOR HEALTHCARE CONSUMERISM


Private health insurance exchanges or “private exchanges” have been D�YHU\�KRW�WRSLF�VLQFH�WKH�SDVVDJH�RI�WKH�$IIRUGDEOH�&DUH�$FW��$&$��LQ�2010. While private exchanges did exist prior to the ACA, the health

care reform law gave them new life—one that is on pace to be a prominent ¿[WXUH�LQ�WKH�SXUFKDVLQJ�PRGHO�IRU�WKH�KHDOWK�LQVXUDQFH�PDUNHWSODFH�

Under the ACA, “public exchanges” are required to be offered at the state level. The public exchanges are governed and operated by each state and/or with the assistance of the federal government, and are required to be operational before 2014. A key difference is the public exchanges will provide consumers with mandated plan options and the subsidized premiums for eligible consumers, while the private exchanges will offer a wide variety of plans from private insurance companies.

What Is A Private Exchange?Simply put, a private exchange is an online marketplace where

employees, or “consumers,” shop for insurance. A private exchange offers a variety of insurance plans for consumers to choose from, including health, dental, Medicare, vision and more. The concept is similar to travel sites where consumers shop for airfare, hotels and rental cars all at one web site.

+RZHYHU��WKH�SULYDWH�H[FKDQJH�PRGHO�LQFRUSRUDWHV�D�IHZ�DGGLWLRQDO�elements integrating employers and their employees:

�� (PSOR\HHV�VKRS�RQ�D�SULYDWH�H[FKDQJH�DV�FRQVXPHUV�EHFDXVH�WKH\�were directed to go there by their employer. These consumers are shopping for the insurance coverage traditionally offered by their employer.

�� 7KH�HPSOR\HU�LV�VHQGLQJ�HPSOR\HHV�WR�WKH�SULYDWH�H[FKDQJH�ZLWK�the added bonus of providing them with employer contributions, which can be used to help employees pay for health care expenses. 7KLV�FRQFHSW�LV�FDOOHG�D�³GH¿QHG�FRQWULEXWLRQ�KHDOWK�SODQ´�DQG�LW�HQDEOHV�WKH�HPSOR\HU�WR�HVWDEOLVK�D�¿[HG�EXGJHW�DQG�DOORFDWH�IXQGV�equally to employees. The funds can be used by the employees to pay for such expenses as dental, health, Medicare and vision insurance premiums, among other health care expenses.

�� $� WUXH� SULYDWH� H[FKDQJH� SURYLGHV� YDULRXV� LQWHUDFWLYH� DQG�transactional resources, including plan comparison tools, decision support technology, application submission resources, a call center with licensed insurance representatives and more.

Why Is A Private Exchange Appealing to Employers?$FFRUGLQJ�WR�D�UHFHQW�VWXG\�E\�$RQ�+HZLWW��HPSOR\HU�VSRQVRUHG�KHDOWK�

LQVXUDQFH�SUHPLXPV�ZLOO�LQFUHDVH�PRUH�WKDQ��SHUFHQW�IURP��WR��This trend is unsustainable for most employers.

Many employers have been shifting more health insurance premium costs to employees for several years now, forcing employees to look for individual insurance on their own or select the least expensive group plan offered by their employer. Rather than shifting more costs, assessing

annual health care spending and evaluating plan utilization, employers are quickly migrating to private exchanges.

7KH� GH¿QHG� FRQWULEXWLRQ� IXQGLQJ� PRGHO� LV� PRUH� WUDQVSDUHQW� DQG�ÀH[LEOH�IRU�HPSOR\HUV��,W�DOORZV�WKH�HPSOR\HU�WR�HVWDEOLVK�DQ�DQQXDO�KHDOWK�care budget and provide employees with funds that can be used to help pay for their own health care expenses.

7KH� IXQGLQJ� VRXUFH� IRU� WKH� GH¿QHG� FRQWULEXWLRQ�PRGHO� LV� D� KHDOWK�UHLPEXUVHPHQW�DUUDQJHPHQW��+5$��ZKLFK�LV�HVWDEOLVKHG�E\�WKH�HPSOR\HU��8SRQ�SXUFKDVLQJ�D�TXDOL¿HG�SODQ�� LQGLYLGXDO�RU� IDPLO\�KHDOWK� LQVXUDQFH��WKH�HPSOR\HH�LV�UHLPEXUVHG�E\�WKH�+5$��(YHQ�EHWWHU��ERWK�WKH�HPSOR\HU�DQG�HPSOR\HH�UHDS�WKH�WD[�DGYDQWDJHV�RI�WKH�+5$�DV�FRQWULEXWLRQV�DUH�WD[�deductible and insurance premiums are tax-free expenses.

Piecing It All TogetherThe private exchange concept is holding greater appeal to employers

throughout the United States, and this will continue, as the public exchanges become a reality in 2014. In order to properly coordinate all of the employer and employee functions within a private exchange, it is ideal to work with a vendor to integrate all components within one environment.

The following features are optimal for a successful private exchange:1. � $ELOLW\� WR� HGXFDWH� WKH� HPSOR\HU� RQ� WKH� GH¿QHG� FRQWULEXWLRQ�

funding model and work with them to establish an annual health care budget.

2. � $ELOLW\�WR�VHDPOHVVO\�HVWDEOLVK�DQ�+5$�3. � $ELOLW\� WR� HGXFDWH� HPSOR\HHV� DERXW� WKH� EHQH¿WV� SURJUDP� DQG�

process.4. Decision support tools to assist employees with their shopping

experience.5. Online insurance resources for employees to directly apply for

the coverage they need.6. Integrated support staff to assist with all inquires, including

education, insurance shopping, reimbursements and more.$� UHFHQW� VWXG\� E\� %RR]� � &RPSDQ\� LQGLFDWHG� HPSOR\HUV� DQG�

consumers showed stronger interest in a private exchange versus a public exchange. The notion of allowing employees to shop for individual health insurance is glaring, but with the appropriate private exchange environment and resources, the experience can be very rewarding.

With all of the new regulations and increasing costs of health care, why would an employer want to continue to offer the traditional group KHDOWK� SODQ� PRGHO"� 3OXV�� WKH� UHVRXUFHIXOQHVV� RI� WKH� SULYDWH� H[FKDQJH�experience can make all past employer issues and concerns seem like a bad dream that was long forgotten.

Nick Severino, Director of Marketing, Flexible Bene"t Service Corporation (Flex) Flex owns and operates the InsureXSolutions™ private health insurance exchange. Based in Rosemont, Ill., Flex has been working with employers throughout the U.S. since 1988.

Private Exchanges: The Future Health Insurance Purchasing Model Has Arrived

BY NICK SEVERINODIRECTOR OF MARKETING

FLEXIBLE BENEFIT SERVICE CORPORATION (FLEX)PRIVATE EXCHANGES

© 2012 BBY Solutions, Inc. INCENTIVE POINTS

Positivity is contagious. So create some good vibes with Reward Zone® Incentive Points, which allows you to easily motivate, thank and reward your employees. There’s an online tool that allows you to manage and track your account as you award Best Buy® Reward Zone points in amounts of your choosing. It’s easy for you to use and easy for them to love.

Learn more at RewardZoneIncentivePoints.com/CDHC.

THEY JUST MIGHT WHISTLE WHILE THEY WORK

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Organizations are increasingly implementing employee health programs to create healthier,

more effective workforces. There’s good reasoning for this important strategy.

An economic study of the impact RI� FKURQLF� GLVHDVH� RQ�8�6�� FRPSDQ\� SUR¿�WDELOLW\� IRXQG� LI� WKH� ODVW� GHFDGH¶V�KHDOWK�FDUH�WUHQGV�SHUVLVW��RSHUDWLQJ�SUR¿�WV�RI�FRPSDQLHV�LQ�PDMRU�LQGXVWULHV�OLNH� WHFKQRORJ\�DQG�¿�QDQFH�FRXOG�GHFOLQH�DQ�DYHUDJH�RI��SHUFHQW� LQ��RU�more years unless they can increase their prices or productivity. The most SUR¿�WDEOH�¿�UPV�FDQ�H[SHFW�D��SHUFHQW�GHFUHDVH�

Companies competing in today’s global economy simply can’t afford to LJQRUH�WKH�KHDOWK�RI� WKHLU�HPSOR\HHV�� ,W¶V�QRW� MXVW� WKH�FRUSRUDWH�ERWWRP�OLQH�that’s taking a hit. Employees also are paying more out of their pockets year after year for higher premiums.

With more companies turning to prevention as a key strategy to FRXQWHU�ULVLQJ�KHDOWK�FDUH�FRVW�WUHQGV��9LUJLQ�+HDOWK0LOHV�surveyed��8�6��HPSOR\HUV� DQG� PRUH� WKDQ� �� HPSOR\HHV� WR� JDXJH� WKHLU� SHUFHSWLRQV� RI�wellness strategies and programs. The results highlighted the growing use RI� ¿�QDQFLDO� LQFHQWLYH²DQG� KRZ� ERWK� HPSOR\HUV� DQG� HPSOR\HHV� YLHZ� WKRVH�incentives as a desired “carrot” for healthy behavior change.

Incentives: A Key Component of Employee Health InitiativesLeading employers recognize the value of prevention-based efforts. They

want to keep their employees healthy and out of the health care system before WKH\�GHYHORS�FRVWO\�FKURQLF�FRQGLWLRQV�WKDW�GULYH��SHUFHQW�RI�WRGD\¶V�KHDOWK�care costs.

At the root of these conditions are personal behaviors—like not getting HQRXJK�SK\VLFDO�DFWLYLW\��QRW�HDWLQJ�ZHOO��DQG�VPRNLQJ��7KDW¶V�D�PDMRU�SURE�OHP��QRW�MXVW�IRU�LQGLYLGXDOV��EXW�DOVR�IRU�FRPSDQLHV�FRYHULQJ�KHDOWK�FDUH�FRVWV��

0RVW� RUJDQL]DWLRQV� VXUYH\HG� �� SHUFHQW�� UHSRUW� WKHLU� RUJDQL]DWLRQ�RIIHUV� HPSOR\HH� KHDOWK� DQG� ZHOOQHVV� EHQH¿�WV�� DQG� QHDUO\� �� SHUFHQW� FLWHG�“reducing health care costs” as the organization’s top priority when it comes to investments. It’s clear employers view incentives as a key component of WKHLU�HIIRUWV��SHUFHQW�VDLG� WKH\�RIIHU� LQFHQWLYHV� WR�PRWLYDWH�HPSOR\HHV� WR�engage in their health and wellness programs. Incentivizing employees to make better health decisions makes business sense. So how do employers best XVH�LQFHQWLYHV�ZLWK�WKHLU�HIIRUWV"

When I say “incentives,” I’m not talking about t-shirts or water bottles. Traditional wellness programs, centered on those sorts of perks, have proven to be ineffective at sustaining employee engagement or driving long-term behavior changes.

(IIHFWLYH� LQFHQWLYHV� VWHHU� FOHDU� RI� D� ³RQH�VL]H�¿�WV�DOO´� DSSURDFK�� 6LQFH��9LUJLQ�+HDOWK0LOHV�KDV�ZRUNHG�ZLWK�OHDGLQJ�8�6��HPSOR\HUV�WR�GHVLJQ�effective incentives-based employee health programs. We often see clients

using a range of incentives with their programs—from cash and gift cards, to premium discounts and health VDYLQJV�DFFRXQW� �+6$��FRQWULEXWLRQV��and more. To effectively design your incentives strategy, it’s imperative to

¿�QG�RXW�ZKDW�PRWLYDWHV�\RXU�HPSOR\HHV�DQG�HQVXUH�WKH�RIIHUHG�LQFHQWLYHV�DUH�tied to the behaviors you want to encourage.

Driving Employee Engagement and Outcomes With Incentives$V�PRUH�HPSOR\HUV�RIIHU�LQFHQWLYHV�ZLWK�WKHLU�HPSOR\HH�KHDOWK�EHQH¿�WV��

ZH� RIWHQ� KHDU� DERXW� WKHP� DOLJQLQJ� WKRVH� LQFHQWLYHV� IRU� RXWFRPHV�� QRW� MXVW�program participation. Nearly 39 percent of employers offer incentives for a combination of program participation and outcomes. Nearly 26 percent offer LQFHQWLYHV�IRU�SURJUDP�SDUWLFLSDWLRQ�RQO\��ZKLOH�MXVW�PRUH�WKDQ��R�SHUFHQW�RI�employers offer only outcomes-based incentives.

To understand more, organizations were asked how they position the incentives they offer. More than 6 percent of employers say they position LQFHQWLYHV�DV�D�³FDUURW´��H�J��³,I�\RX�SDUWLFLSDWH�GR�;��\RX¶OO�HDUQ�<«´��MXVW��SHUFHQW�VDLG�WKH\�SRVLWLRQ�WKHP�DV�D�VWLFN��H�J��³,I�\RX�GRQ¶W�SDUWLFLSDWH�GR�;��\RX¶OO�PLVV�RXW�RQ�KDYH�WR�<«´��,QWHUHVWLQJO\��QHDUO\�D�TXDUWHU�RI�HPSOR\HUV��SHUFHQW��VDLG�WKH\�SRVLWLRQ�LQFHQWLYHV�DV�ERWK�D�FDUURW�DQG�D�VWLFN�

Likewise, Employees had an overwhelmingly positive view toward LQFHQWLYHV�� 1HDUO\� �� SHUFHQW� RI� HPSOR\HHV� VDLG� WKH\� YLHZ� LQFHQWLYHV� DV� D�reward, versus only 5 percent viewing them as a punishment.

Incentives are proving to be a strong motivator in driving employee SDUWLFLSDWLRQ��$OPRVW� ��SHUFHQW� RI� HPSOR\HHV� VXUYH\HG� VDLG� LQFHQWLYHV� DUH�a “very important” factor in their participation in the health and wellness EHQH¿�WV� WKHLU� HPSOR\HU� RIIHUV�� (LJKW\�WKUHH� SHUFHQW� RI� HPSOR\HHV� VD\� WKH\�participate in health and wellness programs to improve their health, and only 20 percent said they participate solely to avoid incurring penalties.

ConclusionUntil recently, employers were still asking, “Do I really need to pay

for health insurance DQG incentives to have employees take better care of WKHPVHOYHV"´�%XW�WRGD\�PDQ\�HPSOR\HUV�DUH�LQVWHDG�DVNLQJ��³+RZ�GR�,�DOLJQ�P\�ZHOOQHVV�VWUDWHJ\�DQG�PDQDJH�FRVWV"´�:KHQ�ZH�VSHDN�WR�WKHP�DERXW�WKH�ability to truly measure impact, drive high employee engagement and bring WRJHWKHU�LQFHQWLYHV�WR�JHW�WKH�RXWFRPHV�WKH\�QHHG��WKH\¶UH�VD\LQJ��³<HV��,�UHDOO\�need to focus my employees and programs to improve the health outcomes and my costs.” And offering incentives is a proven strategic approach.

7RP� $EVKLUH� LV� 693� RI� 3URGXFWV� DQG� 0DUNHWLQJ� IRU� 9LUJLQ� +HDOWK0LOHV�� 3DUW� RI� 6LU�5LFKDUG� %UDQVRQ¶V� IDPHG� 9LUJLQ� *URXS�� 9LUJLQ� +HDOWK0LOHV� SURYLGHV� SURJUDPV� DQG�WHFKQRORJLHV�WKDW�HQJDJH�\RXU�ZRUNIRUFH�LQ�JRRG�KHDOWK��ZZZ�YLUJLQKHDOWKPLOHV�FRP�

Financial Incentives: The Desired ‘Carrot’ for Healthy Behavior Change

REWARDS & INCENTIVES

1HDUO\��SHUFHQW�RI�HPSOR\HHV�VDLG�WKH\�YLHZ�LQFHQWLYHV�DV�D�UHZDUG��YHUVXV�RQO\��SHUFHQW�YLHZLQJ�WKHP�DV�D�SXQLVKPHQW�

BY TOM ABSHIRESENIOR VICE PRESIDENT,

MARKETING AND MEMBER ENGAGEMENTVIRGIN HEALTHMILES


The health care landscape is changing dramatically and costs continue WR� JURZ�� 7KH� &HQWHUV� IRU� 0HGLFDUH� DQG� 0HGLFDLG� 6HUYLFHV� �&06��UHFHQWO\� HVWLPDWHG� DQQXDO� WRWDO� VSHQGLQJ� RQ� KHDOWK� FDUH� DW� ��

trillion. Contributing to these costs are hundreds of millions of dollars lost DQQXDOO\�WR�LQHI¿FLHQFLHV�DQG�ZDVWH�VXFK�DV�IUDXG�DQG�DEXVH��ODFN�RI�FDUH�coordination, and unnecessary or duplicative services.

The Trends:KHWKHU�\RX�DUH� IRU� LW�RU�DJDLQVW� LW�� WKH�$IIRUGDEOH�&DUH�$FW� �$&$��

has already begun to have a considerable impact on employers, payers, providers and consumers. With the introduction of health insurance exchanges, commercial health plans will be forced to compete in both business and consumer environments.

Employers will now be weighing their health care options across private plans, self-funding, and exchanges.

providers will bear more risk through accountable care organizations �$&2�V��0HGLFDUH�6KDUHG�6DYLQJV�3URJUDPV�DQG�FRPPHUFLDO�ULVN�FRQWUDFWV��and will place more emphasis on care coordination at the point of care.

The Solution+HDOWK�FDUH�DV�ZH�NQRZ�LW�ZLOO�FRQWLQXH�WR�FKDQJH�LQ�WKH�QHDU�WHUP��EXW�

formulating and executing a clear population health management plan will ensure you are always on the best path to improving health care quality and HI¿FLHQF\�DQG�FRQWDLQLQJ�FRVWV��

+HDOWK�FDUH�DQDO\WLFV�FDQ�EH�HIIHFWLYHO\�XVHG�WR�SODQ��LPSOHPHQW��PDQDJH�and measure population health management initiatives. Through the com-ELQDWLRQ� RI�PHPEHU�FHQWULF� FOLQLFDO� DQDO\WLFV� DQG� ULVN� VWUDWL¿FDWLRQ�� KHDOWK�plans, providers and employers can transform data into concrete actions.

To demonstrate how analytics can drive comprehensive population health management across the continuum of risk, we used a pyramid con-VWUXFW�GHULYHG�IURP�DQ�DFWXDO�KHDOWK�SODQ�H[SHULHQFH��7KH�SULPDU\�REMHFWLYH�was to stratify the population around opportunities for near-term cost savings.

Very High Relative Risk: Near-term Cost SavingsThe smallest segment of the pyramid contained approximately 6,000

members with predicted costs for the next year of $25,000 per member per year. Of those members, 42 percent had coronary artery disease �&$'�� 7KH� WRWDO�SUHGLFWHG�FRVW�RI� WKLV� JURXS�ZDV�DERXW��PLOOLRQ�D�year. This is a very large cost attached to a small group of members, a VLJQL¿FDQW�SRUWLRQ�RI�ZKLFK�KDYH�D�PDQDJHDEOH�FKURQLF�FRQGLWLRQ�

$FWLRQDEOH� LQVLJKWV� FRPH� IURP� EOHQGLQJ� VWUDWL¿FDWLRQ� DQG� FOLQLFDO�analysis from other data sources to identify CAD-related gaps in care and recent patterns of utilization that may be driving near-term risk. Further modeling can be applied to rank these highest risk members for outreach

and intervention centered around near-term events such as likelihood to be hospitalized or to visit the emergency room. These trigger points create VSHFL¿F�RSSRUWXQLWLHV�DURXQG�PHPEHUV�WR�HQJDJH�LQ�EHKDYLRU�FKDQJH��

High/Moderate Risk: Quality ImprovementThis middle segment of the pyramid had substantially more members.

While lower in relative risk, this group still had average predicted costs of more than $5,000 per member per year and multiple gaps in care such as a 40 percent statin gap rate among diabetics.

This high/moderate relative risk segment offered opportunities to focus on quality improvement among members with chronic conditions emphasizing a longer-term approach and a lower intensity program than would be appropriate for the very highest risk members. The prevalence RI�GLDEHWHV�ZDV��SHUFHQW� LQ� WKLV� VHJPHQW�� VXEVWDQWLDOO\�KLJKHU� WKDQ�WKH�RYHUDOO�SRSXODWLRQ�DYHUDJH��2I�WKRVH�GLDEHWLFV��D�VLJQL¿FDQW�SURSRUWLRQ��SHUFHQW��KDG�D� VWDWLQ�JDS��%\�SUR¿OLQJ� WKH�JDS� UDWH�DPRQJ�GLIIHUHQW�network providers, including benchmarking against the network overall as well as a normative database, providers could see their performance and engage members proactively to close gaps in care. Simultaneously, WKH�SODQ�FRXOG�UDQN�WKHVH�PHPEHUV�E\�D�&DUH�*DS�,QGH[��&*,��DOORZLQJ�IRU�the prioritization of member-focused outreach efforts based on those with multiple opportunities to improve quality of care.

Low/Very Low Relative Risk: Engagement and WellnessThe bottom segment of the pyramid represented the largest but

relatively lowest risk segment of the population. The goal for this group was to heighten awareness around prevention and lifestyle risks and more actively engage those members in their health and in their health SODQ��&RPELQLQJ�FODLPV�DQG�KHDOWK�ULVN�DVVHVVPHQW��+5$��GDWD�UHYHDOHG�opportunities around access to primary care, early detection efforts and a ��SHUFHQW�+5$�UHSRUWHG�REHVLW\�UDWH�

prevalent conditions in this segment were mainly non-chronic in QDWXUH�VXFK�DV�JHQHUDO�V\PSWRPV��(17��GHUPDWRORJLF��LQIHFWLRQV��LQMXULHV�and more. These members tended to use services infrequently and therefore generated fewer claims from which to derive insights.

The ConclusionThe health care landscape is changing. Don’t be afraid to change with

it. Developing and implementing a clear population health management plan fueled by health care analytics will ensure you are always on the best SDWK�WR�LPSURYLQJ�KHDOWK�FDUH�TXDOLW\�DQG�HI¿FLHQF\��DQG�FRQWDLQLQJ�FRVWV��Through the combination of member-centric clinical analytics and risk VWUDWL¿FDWLRQ��KHDOWK�SODQV��SURYLGHUV� DQG�HPSOR\HUV� FDQ� WUDQVIRUP�GDWD�into concrete actions.

Analytic Strategies that Drive Cost, Quality and Wellness Improvement

BY PETE WAGNERSENIOR VICE PRESIDENT EMPLOYER SOLUTIONS

VERISK HEALTH

POPULATION HEALTH MANAGEMENT

2013EAST & WEST Formerly CDHC Solutions FORUM

CALL FOR SPEAKERS

ATLANTACobb Galleria Centre

TBA 2013

FieldMedia LLC is the parent company to The Institute for HealthCare Consumerism, THEIHCC.COM, HealthCare Consumerism Solutions magazine, EmployersWeb.com, and The Institute for HealthCare Consumerism FORUM (formerly CDHC Solutions Forum). 292 South Main St., Ste 400, Alpharetta, GA 30009

SUBMIT YOUR APPLICATION TODAYWWW.THEIHCCFORUM.COM


BENEFIT COMMUNICATIONSBY CONNIE GEE

VICE PRESIDENTMED-VISION

FRU�HPSOR\HUV�DQG�HPSOR\HHV��SRRU�KHDOWK�FRVWV� MREV�DQG�GLPLQLVKHV�standards of living. It’s getting to the point where we cannot afford to get sick, which is why it’s critical to start changing the attitudes and

SHUFHSWLRQV�RI�WKH�KHDOWK�FDUH�FRQVXPHU�DQG�WKH�EHQH¿W�VSRQVRUV��+HDOWK�FDUH�FRVWV�IRU�HPSOR\HHV�KDYH�LQFUHDVHG�DW�D�SHUFHQWDJH�DOPRVW�

three times more than the rate of wages. During the past 10 years, premiums KDYH�LQFUHDVHG��SHUFHQW�ZKLOH�ZDJHV�KDYH�JURZQ��SHUFHQW�DQG�LQÀDWLRQ�KDV�JURZQ��SHUFHQW��7KLV�PHDQV�ZRUNLQJ�LQGLYLGXDOV�ZHQW�EDFNZDUGV�LQ�WKHLU�¿QDQFLDO�JURZWK�DV�PRUH�FRPSDQ\�UHYHQXH�ZHQW�WR�KHDOWK�FDUH�FRVWV�instead of increased wages.

In 2012, the cost for family coverage exceeds $15,000, with workers SD\LQJ�DERXW��RI�WKLV�FRVW��7KH��SDLG�E\�HPSOR\HUV�SUHYHQWV�this revenue from being used to grow the company and hire more staff. The numbers tell us it’s time for a better approach to employee health care.

Enhance Health Care by Engaging EmployeesThe goal of wellness programming is to encourage truly meaningful

lifestyle changes, resulting in stronger workforces. The process for achieving this goal includes a focus on engaging employees to commit to personal responsibility and long-term results.

Employers can produce effective plans that establish health awareness initiatives, mechanisms to encourage participation, health education programs and workplace policies for promoting a healthy environment. but XQOHVV�LQGLYLGXDOV�¿QG�WKHLU�LQWULQVLF�PRWLYDWLRQ��EHKDYLRU�FKDQJHV�ZLOO�QRW�be sustainable.

7KH�NH\�LV�WR�IROORZ�D�VWUDWHJLF�SURFHVV�WR�LQWHUSUHW�HPSOR\HU�VSHFL¿F�GDWD�and to create wellness strategies meeting the needs of both the organization and the individuals. One example would be to identify individuals who have high blood pressure but are not compliant with their plan of treatment.

,W¶V�HVVHQWLDO�WR�LQFOXGH�VSHFL¿F�LQIRUPDWLRQ�IURP�WKH�LQGLYLGXDOV�ZKR�are not compliant. Discover why they are not compliant—what is their perception of their condition—and how does it make them feel when they are not compliant.

Plan a Comprehensive Business StrategyA written strategic plan serves as a roadmap and validation for a

wellness program. A strategic program is not “cookie cutter” in nature with occasional events or random programs. A true employee wellness program is designed to be a long-term behavioral program, building a culture of wellness.

The communications plan should use available resources, address the purpose of the communication, the type of audience and the type of response requested to reach optimum participation and engagement levels.

Consult With Experts to Perform an Analysis and Define ObjectivesChange requires measurement, and the value of numbers cannot

EH� XQGHUVWDWHG�� +HDOWK� GDWD� DQDO\WLFV� DQG� RWKHU� PHWULFV� VKRXOG� EH� WKH�

foundation of all behavior change activities. This answers the questions of “why” and “what” of programming and measures the achievement of expectations. If these questions cannot be answered, then there is little likelihood of successful engagement.

$�TXDOL¿HG�SURIHVVLRQDO�FDQ�HQYLVLRQ�WKH�³ELJ�SLFWXUH´�RI�DQ�HIIHFWLYH�program. Working with an experienced wellness professional is an impor-tant component to getting a return on your investment.

Promote Participation Through Targeted and Customized Programs

programs need to be relevant to issues workers face. Most employer groups are diverse populations. What is relevant to one segment is probably not relevant to another segment. The programs and the delivery of programs should therefore be as diverse as the populations.

Communication materials should be created based on demographic data and delivered with consideration for the way individuals are accustomed to receiving communications. Other considerations should include worksite IDFWRUV�LQÀXHQFLQJ�HPSOR\HH�KHDOWK�VXFK�DV�H[LVWLQJ�SROLFLHV��SUDFWLFHV�DQG�EHQH¿WV��

At the heart of an effective employee wellness program is the wellness committee. This team should be as diverse as the population. Essentially, it LV�DQ�³DFWLRQ�SODQ´�FRPPLWWHH�FKDUJHG�ZLWK�WKH�DFKLHYHPHQW�RI�WKH�VSHFL¿F�JRDOV�DQG�REMHFWLYHV��7KH�UROHV�ZLWKLQ�WKH�FRPPLWWHH�DUH�XVXDOO\�GLYLGHG�LQWR�individuals who are action oriented, people oriented, and problem solvers.

Utilized effectively, the wellness committee can be the key to effectively engaging employees and perpetuating the program’s progress.

Tracking Mechanism and Evaluate Results and Successes Remember change requires measurement. On-going evaluation is

essential to answer what is working to engage employees—what is not work-ing—and what needs to improve as evidenced by data. positive outcomes will impact continued support of the program, and negative outcomes will determine what the next steps are for improvements.

On-going assessments to provide better outcomes must be applied to each component of the program, and each component should be monitored. The application of process improvement includes planning, organizing and managing resources, tools and time.

%\�LPSOHPHQWLQJ�WKHVH�¿YH�VWHSV��HYDOXDWLQJ�UHVXOWV��DQG�¿QH�WXQLQJ�WR�enhance engagement, employers are on track to lowering health care costs and improving quality of care for employees.

&RQQLH�*HH�LV�YLFH�SUHVLGHQW��KHDOWKFDUH�GDWD�DQDO\VW��DQG�ZHOOQHVV�VWUDWHJLF�SODQQHU�IRU�0HG�9LVLRQ�//&��ZKLFK�XVHV�GDWD�DQDO\WLFV�WR�FXVWRPL]H�DFWLRQ�SODQV�WKDW�LPSURYH�TXDOLW\�RI�FDUH�DQG�GHFUHDVH�KHDOWK�FDUH�FRVWV��0HG�9LVLRQ�FDWHUV�WR�WKH�KHDOWK�SODQQLQJ�QHHGV�RI�VHOI�IXQGHG�HPSOR\HUV��*HH�KDV�PRUH�WKDQ��\HDUV�RI�H[SHULHQFH�ZRUNLQJ�LQ�KHDOWK�SURPRWLRQV��GLVHDVH�PDQDJHPHQW��ZRUNIRUFH�XWLOL]DWLRQ��DQG�ZHOOQHVV�SURJUDPPLQJ��6KH�FDQ�EH�UHDFKHG�DW�[email protected]�RU�YLVLW�www.med-vision.com��

The ROI for Engaging Employees


In Act 2, Scene 2 of William Shakespeare’s Hamlet, Polonius stumbles upon the troubled young prince, who is consumed with a book. Polonius asks the lad what he is reading.

“Words, words, words,” says Hamlet, who in his description of the text adds, “…They have a plentiful lack of wit.”

Perhaps the Danish prince was reading your company’s 6XPPDU\�RI�%HQH¿WV�RI�&RYHUDJH��6%&��RU�WKH�RFHDQ�RI�LQIRUPDWLRQ�associated with open enrollment.

“Though this be madness, yet there is method in’t,” adds Polonius, describing Hamlet’s odd behavior, but he also could have been speaking about the chaotic months in the fall that has nothing to do with conference play in college football or layaway SODQV�IRU�&KULVWPDV�JLIWV�

From mid October to December brokers are making their

VDOHV� SLWFK� DQG�EHQH¿W� DQG�+5�PDQDJHUV� DUH� WU\LQJ� WR� HGXFDWH�their employees about the newest products coming down the pike. However, these words, words, words, frequently fall on deaf ears.

While your employees may not express, as eloquently as Shakespeare, their distain toward the abundance of paper work and educational material provided during the madness of open enrollment, their importance need to be stressed.

More so than ever, the 2012 open enrollment period is arguably the most critical time frame when it comes to the future RI� HPSOR\HU�VSRQVRUHG� KHDOWK� EHQH¿WV� IRU� ERWK� HPSOR\HU� DQG�employee.

BY TODD CALLAHAN » EDITORIAL DIRECTORTHE INSTITUTE FOR HEALTHCARE CONSUMERISM

RULES OF ENGAGEMENT

Personalized Messaging

Key to Getting

Employees’ Attention


Open enrollment should be an opportunity for employers to help save the bottom line of the company as well as help preserve and improve the human capital of the organization.

<HW� WRR� PDQ\� WLPHV� RUJDQL]DWLRQV¶� +5�teams perform a 15-minute spiel about what is different this year. Usually this means the company has switched providers or is adding a new wellness program.

They offer brochures, pens, stuffed novelty items and forms to the employee and announce they will be back in two weeks to enroll employ-ees into the new plan. The key factor on the UHWXUQ�WULS�LV�WKH�+5�PDQDJHU�WHOOLQJ�WKH�HPSOR\-ee, “Sign here, here and here.”

That is what we call open enrollment. It’s neither engaging nor effective when it comes to educating the employee population and their

families, who are usually on the outside of the decision process, when it comes to becoming better consumers of health.

As Harry Gottlieb, the founder of The Jellyvision Lab, revealed during a workshop titled, ³+RZ�WR�0DNH�<RXU�%HQH¿WV�&RPPXQLFDWLRQ�D�ORW�0RUH�(QJDJLQJ�´�DW�7KH�,QVWLWXWH�IRU�+HDOWK&DUH�&RQVXPHULVP� �,+&�� )RUXP�:HVW� LQ� /DV� 9HJDV�RQ�6HSW�� EHQH¿W�GLUHFWRUV� DQG�+5�SHRSOH� DUH�WKH�RQO\�RQHV�ZKR�WKLQN�EHQH¿WV�DUH�LPSRUWDQW�

The entertaining and engaging Gottlieb was dead on as he spoke to the packed conference room. Most people do not care about their EHQH¿WV�XQWLO�WKH\�QHHG�WR�XVH�WKHP�

They are more concerned with making a crucial sale; meeting a tight deadline with a proposal or making sure productivity continues WR�UXQ�VPRRWKO\�RQ�WKH�IDFWRU\�ÀRRU�

However, if they knew the importance of being a smart, educated consumer of health and KHDOWK� FDUH� EHQH¿WV�� SHUKDSV� WKH\� ZRXOG� VHH�making the right decision when it comes to one’s health care plan is as vital to the company’s and the individual’s bottom line as increased productivity on the assembly line.

ENGAGE ENGAGE ENGAGEAs with any product, if nobody buys it then

it doesn’t matter how good it is or how much money it saves the consumer. This is where WKH� EHQH¿W�PDQDJHU� DQG� WKH�+5� WHDP�KDYH� WR�¿JXUH�RXW�KRZ�WR�VWUHVV�WKH�LPSRUWDQFH�RI�RSHQ�enrollment.

This requires more than a 15-minute spiel and a return trip in two weeks to collect the enrollment forms. Education and engagement is a yearly process. This helps gain the trust of the employees and makes them feel the company cares about the well-being of each employee and their family.

Once the trust is established, getting the employee population engaged becomes an easier process.

'XULQJ� ,+&� )2580� :HVW�� KHOG� DW� WKH�

5HG�5RFN�5HVRUW��&DVLQR��6SD��PRUH�WKDQ��DWWHQGHHV�ZHUH�DEOH�WR�/($51��&211(&7�DQG�6+$5(� ZLWK� VRPH� RI� WKH� OHDGLQJ� KHDOWK� FDUH�consumerism advocates in the nation.

A key learning point was the art of engagement, and a reoccurring theme of all the workshops, focusing on engagement and engagement tools, was personalized messaging.

HEY YOU, YEAH YOUWhen you check the mail and an envelope

says dear resident or preferred customer, those are probably being tossed in the trash. However, if your name appears on the envelope, it is more than likely getting your attention, and you will take action.

The same is true in the messaging of HPSOR\HH�EHQH¿WV��³+H\�\RX�´�RU�³'HDU�HPSOR\-ee,” is not going to cut it. You might as well ¿OH� WKH�PDWHULDO� LQ� WKH� UHF\FOLQJ�ELQ�EHFDXVH� LW�will either go in the trash or in someone’s desk drawer, never seeing the light of day.

While this strategy is more time consuming than the blanket, “Dear employee,” envelope, it is more cost-effective in the long run.

And who says it has to be printed material. With a diverse workforce, there are several options in delivering the targeted message, either through printed material, email, snail PDLO��&'�RU�ZKDWHYHU�IRUP�EHVW�FDWHULQJ�WR�\RXU�employee population.

WHAT OTHERS ARE DOINGYou are not alone. With the added pressure

of remaining compliant with regulations put IRUWK� E\� WKH� $IIRUGDEOH� &DUH� $FW�� D� VOXJJLVK�economic recovery and a diverse workforce in age and culture, companies of all sizes are trying WR�¿JXUH�RXW�KRZ� WR�HQJDJH� WKHLU�HPSOR\HHV� WR�be better consumers of health.

'XULQJ� ,+&� )2580� :HVW�� EHQHILW�GLUHFWRUV� DQG� +5� PDQDJHUV� IURP� IRXU� RI� WKH�largest, most diverse companies in the world—

A key learning point was the art of engagement, and a reoccurring theme of all the workshops,

focusing on engagement and engagement tools, was personalized messaging.


&RQ�:D\� ,QF�� 7KH� %RHLQJ� &RPSDQ\�� 3LWQH\�Bowes and Staples Inc.—participated in an interactive share session focusing on effective engagement and communication.

A packed room listened to the quartet of panelists, moderated by Kim Buckey, principal of compliance communications practices with +LJK5RDGV�� VKDUHG� UHVSHFWLYH� SDLQ� SRLQWV� RI�trying to engage and effectively communicate with a diverse workforce. They also shared the importance of education and offered strategies and tactics that worked best in yielding a high percentage of employee engagement in a health care plan or wellness program.

The following are highlights from the share session, featuring: Mary Bradley-Hall, director RI� EHQH¿WV� IRU� 3LWQH\� %RZHV�� /LVD� *RPH]�� WKH�VXSHUYLVRU� DQG� EHQH¿WV� DGPLQLVWUDWRU� IRU�&RQ�:D\� ,QF�� /DUD� /D5RVH�� PDQDJHU� RI� %RHLQJ�+HDOWK� � 3URGXFWLYLW\� 'DWD� 0DQDJHPHQW� ZLWK�7KH�%RHLQJ�&RPSDQ\�DQG�1DQF\�/D]JLQ��ZKR�LV�WKH�GLUHFWRU�RI�JOREDO�EHQH¿WV�IRU�6WDSOHV��,QF�

THE BOEING COMPANYBoeing is the world’s largest aerospace

company and leading manufacturer of commercial jetliners and defense, space and security systems. The company, based LQ� &KLFDJR�� HPSOR\HHV� PRUH� WKDQ� ��people across the United States and more than 90,000 are nonunion employees spread over 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere, which can lead to challenges when trying to engage such a massive population.

PROBLEM: With its 90,000 employees spread around the globe and the diversity of WKH� SRSXODWLRQ²RI¿FH�ZRUNHUV� WR� DVVHPEO\� OLQH�ZRUNHUV²/D5RVH� DQG� WKH� EHQH¿W� WHDP� IDFHG� D�GLI¿FXOW�VLWXDWLRQ��7KH�GLI¿FXOW\�ZDV�FRPSRXQGHG�LQ� �� ZKHQ� D� ODSWRS� FRQWDLQLQJ� VHQVLWLYH�PDWHULDO�ZDV�VWROHQ�IURP�WKH�+5�GHSDUWPHQW�

The computer contained vital informa-WLRQ� IRU��FXUUHQW�DQG�SDVW�HPSOR\HHV�RI�Boeing.

Boeing provided three years of free credit monitoring for employees whose personal infor-

mation was compromised, and all company computers are now installed with encryption software.

“We are even more sensitive to data privacy, DQG�LW�KDV�KDG�D�VLJQL¿FDQW�LPSDFW�´�/D5RVH�VDLG��“We informed our employees and increased our data monitoring and data protection to make sure nothing has been compromised and our employees’ information is safe and secure.”

With the problem of personal security VROYHG�� WKH� EHQH¿W� WHDP� KDG� WR� ¿JXUH� RXW� D�way to solve another problem when it came to engaging the Boeing population.

“Usually open enrollment falls during WKH� EXVLHVW� WLPH� RI� WKH� \HDU�´� /D5RVH� VDLG��“There is so much going on in the production HQYLURQPHQW� DQG� RQ� WKH� VKRS� ÀRRU� WKDW� WKH�employees have no energy left when it comes to GLVFXVVLQJ�EHQH¿WV�

“It is tough to get their attention.”

SOLUTION: In an attempt to get the employees’ attention, Boeing installed Kiosks on the factory ÀRRU�WR�KHOS�VDYH�WLPH�GXULQJ�RSHQ�HQUROOPHQW��/D5RVH�DGGHG��SHUFHQW�RI�%RHLQJ¶V�HQUROOPHQW�is performed online.

To engage the decision-makers at home, Boeing mailed personalized postcards as a reminder open enrollment was approaching and what new products were available.

The personalized mailing also helped when WKH� LQIRUPDWLRQ� DERXW� HPSOR\HH� EHQH¿WV� ZDV�not positive.

Boeing, known for its generous employee KHDOWK� EHQH¿W� SODQV�� ZDV� RQH� RI� WKH� ¿UVW� ODUJH�companies to implement a health savings account.

7ZR� \HDUV� DJR�� ZKHQ� $&$� ZDV� SDVVHG��the company was concerned the health care law could potentially harm its employees EHFDXVH� RI� WKH� VR�FDOOHG� ³&DGLOODF� SODQ´� WD[�penalizing employers offering virtually no-cost comprehensive plans to their employees.

In a letter mailed to each nonunion employee, Boeing informed it workforce they would pay more for their health care. Deductibles ZLOO�JR�XS�WR��IRU�LQGLYLGXDOV��DQ�LQFUHDVH�RI�$100. For families, the new deductible will be ��DQ�LQFUHDVH�RI��

In addition, Boeing instituted a copayment of 10 percent after the deductible had been met. The copayment rose to 20 percent in 2012.

The changes reduced the value of the Boeing plan, but it’s unclear whether the FRPSDQ\� ZLOO� HVFDSH� WKH� ³&DGLOODF� SODQ´� WD[�ORRPLQJ�LQ��RU�ZKHWKHU�$&$�ZLOO�VWLOO�H[LVW�

To curb rising health care costs, Boeing implemented a wellness program and just recently focused on wellness incentives. The company contributed to employee HSA accounts if they participated in a health risk assessment or a biometric screening.

This fall, the company made participation mandatory in order to get credit, and if employees chose not to participate, there would be consequences, such as higher copays.

“Employees were concerned about privacy and wanted to know how the results were going WR� EH� XVHG�´� /D5RVH� DGGHG�� ³:H� DVVXUHG� WKHP�their privacy was safe and showed how the data was going to be collected and how it would be used. As the employees got more comfortable with the process, the more they began to par-ticipate.”

There is so much going on in the production environment and on the shop floor that the

employees have no energy left when it comes to discussing benefits.


Boeing also offers its employees a wellness µWRRONLW¶�FRPSULVHG�RI��HOHPHQWV��LQFOXGLQJ�D�website, a monthly health newsletter, a yearly health risk assessment, weight management tools, family care resources, an employee assistance program and exercise opportunities.

CON-WAY Inc.&RQ�:D\� )UHLJKW� LV� DQ� LQGXVWU\� OHDGHU�

in the transportation and logistics industry FRPELQLQJ�WKH�UHVRXUFHV�RI�PRUH�WKDQ��professionals, decades of experience and LQGXVWU\�OHDGHUVKLS��DQG�WKH�¿QDQFLDO�VWDELOLW\�RI� D� �� ELOOLRQ� SXEOLFO\� WUDGHG� FRPSDQ\� WR�create competitive advantage for its customers.

However, when it comes to communicating DQG� HQJDJLQJ� HPSOR\HHV�� &RQ�:D\� LV� DW� D�unique disadvantage than other firms—accessibility.

PROBLEM:� :KLOH� WKH� PDMRULW\� RI� &RQ�:D\�Freight’s employees head home after a long day, PRUH� WKDQ� �� HPSOR\HHV� ZRUN� IURP� KRPH��which means their truck, which complicates matters. They also are leery of change.

³(LJKW\�¿YH�SHUFHQW�RI�RXU�SRSXODWLRQ�DUH�in a truck,” Gomez shared. “That creates a challenge for communications.”

Two years ago the company implemented D� KLJK�GHGXFWLEOH� KHDOWK� SODQ� DQG� SXW� WKH� +5�department in charge of the communication and HGXFDWLRQ�RI�WKH�HPSOR\HH�SRSXODWLRQ��+5�ZHQW�to its vendors, grabbed all of the educational material and blasted its employee population with information.

E-blasts were routinely sent out, and an online portal was created during open enroll-ment. The result was a 2 percent enrollment

rate, as employees preferred the same old health plan.

“The feedback was, we are truck drivers, and we need little blasts of information,” Gomez said. “We run freight, and you are bombarding us with this information.”

SOLUTION:� 8VLQJ� VXUYH\V�� &RQ�:D\� DVNHG�its employees what was the best method of communication. The company also developed a three-year communications plan as it moved forward with introducing a consumer-directed health plan and a wellness program.

“We had never done that before,” Gomez said of the three-year plan. “It became painfully apparent that baby bits of information is better. You don’t have to say it all at once.”

In the second year of the communications SODQ��&RQ�:D\�KDV� VHHQ� D� VL[� SHUFHQW� LQFUHDVH�in participation and expects that to continue to grow as the culture begins warming to the idea RI�D�&'+3�

&RQ�:D\� DOVR� SURGXFHG� D� QHZ� 6XPPDU\�3ODQ� 'HVFULSWLRQ� �63'�� ZKHQ� &'+3� ZDV�introduced, but ran into a roadblock on distributing it to a mobile workforce.

An online portal was created to house the 63'��EXW�PRUH�WKDQ��KDYH�UHTXHVWHG�D�KDUG�copy of the book because the truck drivers do not have access to computers.

&RQ�:D\� DOVR� LV� H[SHULPHQWLQJ� ZLWK� D�microsite that provides employees with calculators and educational support tools and equipping each truck with an integrated geospatial technology solution allowing Skype and email capabilities. This makes the communications and engagement process less cumbersome.

PITNEY BOWESPitney Bowes is a leading provider of

customer communication technologies and serves small-to-medium size businesses as well as large corporations in more than 100 countries. 9DOXHG�DW��ELOOLRQ��3LWQH\�%RZHV�KDV��global employees and its software, equipment and services help businesses communicate more effectively in today’s multichannel environment, allowing its clients to build long-term customer UHODWLRQVKLSV�DQG�GULYH�SUR¿WDEOH�JURZWK�

PROBLEM: With 29,000 employees spread around the globe, logistics is a monumental pain point for Hall, who is based in the company KHDGTXDUWHUV� RI� 6WDPIRUG�� &RQQ�� 7KRVH� SDLQ�points are compounded with the fact many employees of Pitney Bowes work off-site in the mailrooms of other companies as contractors.

“Sixty percent or our staff are hourly workers and work offsite and are outsourced. 6R�LW�LV�GLI¿FXOW�WR�HQJDJH�WKHP�´�VDLG�+DOO��ZKR�is responsible for the development of the U.S. health care strategy, including quality assessment of health care programs, management of health care suppliers, development and management of the health care budget and the communication of plan offerings for Pitney Bowes’ employees. “A major problem we have is getting our employees to understand they are Pitney Bowes employees and not American Express.”

Pitney Bowes implemented a value-based health plan in 2002. The company also has a ÀH[LEOH� VSHQGLQJ� DFFRXQW� �)6$�� DQG� UHFHQWO\�launched a health and wellness initiative that provides incentives for employees to staying healthy. This includes nutrition counseling, weight management programs and smoking

It became painfully apparent that baby bits of information is better. You don’t have to say it all at once.


cessation. Depending on location, employees can take advantage of on-site clinics, pharmacy ¿�WQHVV�FHQWHUV�DQG�QXWULWLRQ�IRFXVHG�FDIHWHULDV�

Pitney Bowes offered exceptional employee EHQH¿�WV�� EXW� HPSOR\HHV� ZHUH� QRW� IXOO\� WDNLQJ�DGYDQWDJH�RI�WKRVH�EHQH¿�WV�

SOLUTION: To increase employee awareness and participation rates, Pitney Bowes partnered with health plans, such as UnitedHealthcare and &LJQD��WR�WDUJHW�QHZ�KLUHV��7KLV�VWUDWHJ\�LQFOXGHG�a personalized welcome letter addressed to the employee and each family member.

The initial result was a 29 percent increase in primary care physician activity among Pitney Bowes employees. Due to the success with the new hires, Pitney Bowes expanded the program to the entire population.

Through company newsletters, both in digital and print, Pitney Bowes started with the mid-year health checkup and targeted employees who had been delinquent on their KHDOWK� VFUHHQLQJ�� 7KH� UHVXOW�ZDV� D� ��SHUFHQW�uptake in participation in screenings.

“The personalized message was very helpful,” Hall added.

As far as open enrollment, Pitney Bowes uses online forms as well as paper forms to enroll employees in a health and wellness program.

STAPLESStaples, the world’s largest

RI¿�FH�SURGXFWV�FRPSDQ\�SURYLGLQJ�products, services and expertise in WKH� FDWHJRULHV� RI� RI¿�FH� VXSSOLHV��WHFKQRORJ\�� IXUQLWXUH�� FRS\� �print, and cleaning and breakroom supplies, has 90,000 associates in PRUH�WKDQ��FRXQWULHV�WKURXJKRXW�1RUWK�DQG�6RXWK�$PHULFD��(XURSH��Asia and Australia.

The company’s annual sales total $25 billion, ranking second in the world in H&RPPHUFH�VDOHV��SURYLQJ�6WDSOHV�NQRZV�KRZ�WR�cater to the consumer. The problem was creating consumers of health care.

PROBLEM: Staples implemented a health UHLPEXUVHPHQW�DUUDQJHPHQW� LQ��DQG� WKHQ�moved to go full-replacement by adding a health savings account with a high-deductible health plan.

While the eligible associates were experts ZKHQ� LW� FDPH� WR� RI¿�FH� VXSSOLHV�� WKH\�ZHUH� QRW�as knowledgeable when it came to managing a &'+3�

Lazgin and her team had to get Staples employees educated and excited about the EHQH¿�WV�RI�HQUROOLQJ�LQ�D�&'+3�

³:H� WULHG� WR� PDUU\� ¿�QDQFLDO� ZHOO�EHLQJ�along with healthy well-being, but we did not get much traction,” Lazgin said. “We decided to get more personal and to get them [associates] to understand the importance of an HSA like they GR�ZLWK�WKHLU��N��´

SOLUTION: Education was the key. Since employees were familiar with how their retirement plan worked, Lazgin and her team began conducting on-site clinics. They stressed the importance of preparing for the future and budgeting for future medical expenses.

The message was received, as contributions to HSAs increased by 70 percent.

In addition to on-site clinics, Staples designed www.stapleslivewell.com to help

educate associates and their families about FKRRVLQJ� WKH� ULJKW� EHQH¿�WV� SDFNDJH� DQG�participating in a wellness program. There was even a podcast on how to choose an FSA, +5$� RU� DQ� +6$�� WKURXJK� YHQGRUV� &LJQD� DQG�UnitedHealthcare.

The website also provides a quarterly %HQH¿�WV� 6KRS� 6PDUW� 1HZVOHWWHU�� WRROV� VXFK� DV�DVVRFLDWH�FRQQHFWLRQ��¿�QG�D�GRFWRU��RU�WDNH�D�SHU�sonal health assessment. It also provides an inter-active welcome kit, a full-time enrollment guide, DQ� +5$� XVHU� JXLGH�� DQ� +6$� XVHU� JXLGH� DQG� D�VXSSOHPHQWDO�GHQWDO�SODQ�GHVLJQ�JXLGH�IURP�$À�DF�

$QRWKHU� SRSXODU� RIIHU� LV� WKH� 0'/,9(��which allows a Staples associate to consult with a physician over the phone or through an RQOLQH�YLGHR��KRXUV�D�GD\��GD\V�D�\HDU�IRU�nonemergency medical care.

7KH� ERDUG�FHUWL¿�HG� GRFWRUV�� SHGLDWULFLDQV�and licensed therapists can write a prescription and send it to your pharmacy of choice as soon as the online or phone visit is over.

There also are interactive social media

budgeting games that have not only helped enhance employee education and engagement, but wives, husbands and children are visiting the website and participating.

Staples routinely use blogs on its employee site about the importance of getting yearly physicals and saving for the future.

³1RW� DOO� RI� RXU� HPSOR\HHV� KDYH� DFFHVV� WR�computers, “ Lazgin said. “But those who do, say it is an effective tool.”

A major problem we have is getting our employees to understand they are Pitney Bowes employees and not American Express.

We decided to get more personal and to get them [associates] to

understand the importance of an HSA like they do

with their 401(k).

Savvy employers appreciate the power of consumer-directed health plans (CDHPs). However, these plans still haven’t achieved signifi cant traction. A widening group of experts believes this

failure is a function of ineffective education, impacted by low health plan literacy and insuffi cient consumer engagement.

So how can employers better educate and engage their employees to make better health

care decisions? One answer is to turn to proven techniques of consumer product marketers—personalizing communications by using attitudinal segmentation. Consumer marketers have used this technique for years to increase consumer response—but until now, no one has cracked the code on how to use attitudinal segmentation to increase the response and engagement of employees in how they choose and use health insurance and services.

How Targeted Employee Communication

Can Increase CDHP Adoption Rates

BY ROGER TRAVIS » PRESIDENT » EXPERIENCELAB INC.


Is about to face rehab from a traumatic injury

Considering starting a family

Experiencing complications from high blood pressure

Facing challenging work-related physical fi tness requirements

Just diagnosed with diabetes

First time she’s ever had health

insurance coverage

Fighting cancerMentally ill mother

is a dependent

Wife has Alzheimer’s


Proof of a “Failure to Communicate” 7KH� &'+3� YDOXH� SURSRVLWLRQ� LV� FOHDU��

These plans empower employees to shop more wisely for medical services and take greater responsibility for their well-being—much as homeowners can manage their deductibles and coverage options.

:LWK� FORVH� WR� �� SHUFHQW� RI� HPSOR\HHV�QRW�XQGHUVWDQGLQJ� WKHLU�EHQH¿�WV�� WKHUH¶V� D�GLUH�need for better communications and decision-VXSSRUW�WRROV��&'+3V�DOVR�DUH�JRRG�IRU�EXVLQHVV��Although known over the past few years as a hallmark of large employers, including General (OHFWULF�� -30RUJDQ� &KDVH� � &R�� DQG� 1LVVDQ��this concept is gaining popularity with more employers.

6HYHQW\�VHYHQ�SHUFHQW�RI� VPDOO�¿�UPV�QRZ�EHOLHYH�&'+3V�DQG�KLJK�GHGXFWLEOH�KHDOWK�SODQV��+'+3V��UHSUHVHQW�WKH�NH\�WR�FRQWUROOLQJ�KHDOWK�care costs—a critical realization in the nation’s post-health care reform environment.

,W¶V�HDV\�WR�VHH�ZK\��&'+3V�DUH�D�EDUJDLQ��Their price point is low enough that it encourages employees to enroll—and there are often addi-tional incentives to consider, such as employer FRQWULEXWLRQV�WR�D�KHDOWK�VDYLQJV�DFFRXQW��+6$��&'+3V�IHDWXULQJ�DQ�+6$�FRVW�QHDUO\��SHUFHQW�OHVV� WKDQ� RWKHU� SODQ� W\SHV� LQ� �� YV��IRU�D�332�DQG��IRU�DQ�+02�

They save companies anywhere from ��WR��D�\HDU�SHU�HPSOR\HH�FRPSDUHG�with other plans. That is why employers also sweeten the pot to steer enrollment to these vehicles. Employers contributing to their employees’ HSA provide an average of $919 for VLQJOH�FRYHUDJH�DQG��IRU�IDPLO\�FRYHUDJH�

Despite these advantages, there are a number of obstacles that prevent a widespread embrace of these plans. Only about 19 percent RI� FRYHUHG� ZRUNHUV� DUH� HQUROOHG� LQ� D� &'+3��ZKLOH�MXVW��SHUFHQW�RI�HPSOR\HUV�UHSRUW�D�SODQ�adoption rate of more than 50 percent.

Why is that the case? 2QH� H[SODQDWLRQ� LV� ³RQH�VL]H�¿�WV�DOO´� FRP�

munications, which lack personalized or relevant information, don’t help employees make these complex health care decisions. Some employees also are reluctant to change—or may suspect the new plan isn’t as “good.” Another problem is health insurance decisions evoke an emotional response from some employees that can under-mine the prospect of logic-based decisions.

7KHUH¶V� DOVR� D� ¿�QDQFLDO� DQG� KHDOWK� FDUH�“literacy” component involved. Employees REYLRXVO\�QHHG�WR�XQGHUVWDQG�KRZ�&'+3V�ZRUN�before they can be expected to sign up for coverage. An estimated 90 million U.S. adults are unable to understand the health care system.

,Q� DGGLWLRQ�� SHUFHQW� RI� UHVSRQGHQWV�to a recent industry survey thought employee ¿�QDQFLDO� OLWHUDF\� ZDV� VR� LPSRUWDQW� LW� FRXOG�actually reduce vulnerability to major economic crises.

Finance and health care are two issues often too complex for much of the population to process. If employees don’t understand basic coverage terms and concepts, then they will not be able to take full advantage RI� WKH� &'+3� GHVLJQ�� /LWHUDF\�is an employee education and communication challenge.

The way information is disseminated is just as critical as the featured content. One SRWHQWLDO� EOLQG� VSRW� RI� WKH� &'+3� PRGHO� LV�a failure to satisfy employee communication preferences. The chief objective is to offer a FRPSUHKHQVLYH� PL[� RI� RQOLQH� DQG� RIÀ�LQH�messaging that resonates with each employee segment. It also is important employees be given enough time to process plan information as they need it – ahead of open enrollment—and on their smart phone or at home.

$OO�RI�WKHVH�FKDOOHQJHV�PDNH�LW�GLI¿�FXOW�IRU�+5� DQG� EHQH¿�WV� SURIHVVLRQDOV� WR� GHOLYHU� SHU�VRQDOL]HG� &'+3� FRPPXQLFDWLRQV�� :KLOH� WKH\�may use focus groups and surveys to spark LGHDV� WR� LPSURYH� EHQH¿�WV� FRPPXQLFDWLRQV�� RU�segment communications for exempt vs. non-exempt staff, the results are still the same: extensive open-enrollment sessions, lots of one-RQ�RQH�HPSOR\HH�PHHWLQJV�DQG�ORZ�&'+3�DGRS�tion rates. These labor-intensive tasks keep an DOUHDG\� EXV\� +5� GHSDUWPHQW� IURP� PDNLQJ� D�more strategic contribution to the organization.

The Solution: Attitudinal Segmentation for Employee Communications

The time has come to adopt an innovative approach to employee communications based on employee attitudes about health care and

¿�QDQFH�� 7KH� XVH� RI� DWWLWXGLQDO� VHJPHQWDWLRQ�HQDEOHV� +5� GHSDUWPHQWV� WR� XVH� FRQVXPHU�marketing techniques that help employees make informed choices.

As an example, an advertising campaign pitching the same product used two approaches: positioning the product as the “smart choice” to one segment and the “cool choice” to another. :K\�QRW�DSSO\�LW�WR�HPSOR\HH�EHQH¿�WV"

The idea is to use pre-determined “segments” of the population focused on KHDOWK� FDUH� DQG� ¿�QDQFH� GHFLVLRQ�PDNLQJ��*URXQGEUHDNLQJ� UHVHDUFK� KDV� GLYLGHG� ��million Americans with employer-sponsored health insurance into seven unique segments or personalities demonstrating different attitudes and beliefs about health insurance-related matters.

Unlike segmentation based on age, income and standard demographics, this segmentation approach predicts health attitudes and related ¿�QDQFLDO� GHFLVLRQV�� 7KH� UHVHDUFK� VKRZV� KHDOWK�FDUH� DQG� UHODWHG� ¿�QDQFLDO� GHFLVLRQ� GULYHUV� DUH�based on several different dimensions. They LQFOXGH�� DQ� HPSOR\HH¶V� ¿�QDQFLDO� HQJDJHPHQW�SUHIHUHQFHV�� ¿�QDQFLDO� NQRZOHGJH� DQG� FRQ¿��GHQFH�� GLVFLSOLQH� LQ� PDQDJLQJ� ¿�QDQFHV�� VHQVH�of security in health coverage; HDHP interest; premium or price sensitivity and communica-tion channel preference.

The seven unique segments and percentage of the U.S. population are:

�� SHUFHQW�DUH�GHVFULEHG�DV�VDWLV¿�HG�DQG�FRQ¿�GHQW��

�� SHUFHQW�DUH�NQRZOHGJHDEOH�EXW�insecure,

“We analyzed how 168 million American employees evaluate health insurance plans. Our national research into employee attitudes

uncovered seven predictive personality types, each with unique needs, attitudes and behaviors around CDHP adoption.”


�� SHUFHQW�DUH�FRQ¿�GHQW�DQG�¿�QDQFLDOO\�VRSKLVWLFDWHG�

�� 15 percent are undisciplined but healthy,

�� SHUFHQW�DUH�ZRUULHG��LQVHFXUH�DQG�unknowledgeable,

�� SHUFHQW�DUH�PRGHUDWH�DGYLFH�seekers, and

�� SHUFHQW�DUH�FORVH�PLQGHG�DQG�FRQWHQW�ZLWK�WKHLU�¿�QDQFLDO�knowledge.

But how do you know which segment an employee is in? As part of this breakthrough research, these personality types can be determined very simply—as employees’ view the EHQH¿�W� FRPPXQLFDWLRQV�� 8VLQJ� WKLV� LQWHUDFWLYH�DSSURDFK�� HDFK� HPSOR\HH� UHVSRQGV� WR� ¿�YH�simple statements that statistically determine their segment with 95 percent accuracy:

1. How often do you prepare your own tax return?

2. ,�HQMR\�GHDOLQJ�ZLWK�¿�QDQFLDO�PDWWHUV�� I am anxious I won’t be able to afford

the quality of health care services I need.

�� I am a sophisticated consumer of ¿�QDQFLDO�SURGXFWV�DQG�VHUYLFHV��

5. My household has a long-term ¿�QDQFLDO�SODQ�

In a matter of seconds, the employee views YLGHR�FRQWHQW�VSHFL¿�FDOO\� WDLORUHG�IRU� WKHLU�VHJ�ment. Ongoing personalized communications address health plan choice and health care con-

sumerism topics that are relevant year-round. The upshot is employers adopting this

approach receive eight times the results of “one-size-fits-all” communications. As an example, employees who received attitudinally-segmented communications grew their HSA contributions faster than those in the control JURXS��SHUFHQW�YV��SHUFHQW��

In addition to moving their money, employee feedback was overwhelmingly positive: 7KH\�VDLG�WKH\�¿�QDOO\�XQGHUVWRRG�&'+3V��:LWK�such favorable quantitative and qualitative results, it is easy to see how employers are able WR�PD[LPL]H�WKHLU�&'+3�DGRSWLRQ�DQG�XVDJH�

The Benefi ts of Attitudinal SegmentationFor companies looking for a faster

PLJUDWLRQ� WR� &'+3V� ZLWKRXW� IRUFLQJ� D� &'+3�only choice upon employees, segmenting employees is a must. Employee communications using attitudinal segmentation are more relevant, since they focus on the unique decision drivers for that particular segment.

For example, an employee who doesn’t need a tax shelter will not receive the comprehensive PHVVDJLQJ��IXOO�RI�GLVFORVXUHV��DQG�FRQIXVLQJ�WD[�calculators. Instead, his or her message might be about having a “safety net.”

This approach also builds a platform for better communications not just at open enrollment, but also throughout the year with highly personalized and effective messages about the importance of making smart health care decisions.

It’s also important to keep in mind this approach helps employers with their HSA incentive strategy, too. Originally designed to help employees deal with the initial sticker shock of HDHPs, these incentive contributions FDQ¶W� EH� VXVWDLQHG� LQGH¿�QLWHO\� E\� HPSOR\HUV��,Q� IDFW�� ZLWK� �� SHUFHQW� RI� HPSOR\HUV� QRW�

offering incentives, there is mounting evidence employers are seeking to reduce their subsidy.

Conclusion 7KH� IXOO� SRWHQWLDO� RI� &'+3V� FDQQRW� EH�

realized until employers adopt a more meaning-ful approach to helping their employees better understand the complexities of health care and ¿�QDQFLDO� GHFLVLRQ�PDNLQJ�� 7R� DFFRPSOLVK� WKLV�objective, employers need to offer personalized communications based on attitudinal segmenta-tion of their workforce.

This consumer-marketing technique rep-resents a departure from traditional strategies XVHG� LQ� EHQH¿�WV� FRPPXQLFDWLRQ�� DQG� EHWWHU�enables employers to predict health attitudes DQG� UHODWHG� ¿�QDQFLDO� GHFLVLRQV�� ,Q� WKLV� ZD\��employers can achieve a faster migration to &'+3V� ZLWKRXW� IRUFLQJ� D� &'+3�RQO\� FKRLFH�upon their employees.

Roger M. Travis is president

of ExperienceLab Inc., whose

product, CDHCentric, is a

p a t e n t e d c o m m u n i c a t i o n

program that saves employers

money by increasing employee

adoption and engagement with

consumer-directed health plans.

CDHCentric’s tailored, multi-media communications,

based on seven unique attitudinal segments,

deliver eight times the results of “one-size-fits-all”

communications. For more information call 406-577-

1236 or visit www.experiencelab.com

\

CDHCentric is a process to engage each personality differently. Employees opt in with a simple fi ve-question survey. The survey responses

indicate a personality type for each employee. Communications are tailored by personality type, achieving breakthrough impact.

REAP THE REWARDS OF CORPORATE MEMBERSHIP

REAP THE REWARDS OF CORPORATE MEMBERSHIP

Become a Corporate Member today and save 20%

&RQWDFW�DQ�,+&�6DOHV�UHS�for additional information

770-296-7276

Treatment Selection & Shared Decision Support Platform

Web + Mobile

www. .com [email protected]

heart health

muscle, bone, and joint issues

pregnancydiabetes

respiratory issues

mental health

Reducing Health Care Costs and Energizing

Employees


In late 2010, facing a 60 percent price increase in its traditional health care plan, FitLinxx decided to move to a consumer-driven health plan (CDHP) with a health savings account

(HSA). While that alone would have benefi ted the company, it was by combining an incentive-based health and wellness employee program with the CDHP that ultimately made the change a win-win for employees and for FitLinxx.

According to the Centers for Disease Control (CDC), the biggest contributors to rising health care costs in the United States are lifestyle choices

like poor nutrition, smoking and inactivity. A person’s lifestyle is a major factor in the nation’s chronic disease epidemic and accounts for 75 percent of the money spent per year on U.S. health care.

Meanwhile, the CDC reports 60 percent of adults do not participate in regular physical activity. In fact, Americans spend an average of 56 hours per week not moving—either staring at computer screens, driving or collapsed in front of TVs. This has increased the incidence of obesity, heart disease and other illnesses like diabetes.

BY ANDREA NEWMAN » DIRECTOR, HR, BENEFITS AND ADMINISTRATION » FITLINXX INC.


The good news is increasing physical activ-ity is the single most effective way to improve one’s health, including preventing and managing diseases. In fact, effective wellness programs, including physical activity, have been shown to improve the health of employees, reduce health-care costs and increase productivity.

FitWellAs a provider of health and wellness devic-

es, FitLinxx decided to initiate its “FitWell” ZHOOQHVV�SURJUDP�WZR�\HDUV�SULRU� WR� WKH�&'+3�decision. There were three reasons why the com-pany elected to implement a wellness program: FitLinxx wanted to “walk our talk” regarding the EHQH¿WV� RI�KHDOWK� DQG�ZHOOQHVV�SURJUDPV��KHOS�its employees better understand customer expe-riences with FitLinxx products; and improve the overall health of its employee population.

“FitWell” began as a simple stand-alone program in 2009. FitLinxx created incentives where employees who reached at least one RI� IRXU� DFWLYLW\� JRDOV� �VXFK� DV� ZDONLQJ� WZR�PLOHV�SHU�GD\�RYHU�WKH�FRXUVH�RI�WKUHH�PRQWKV��received a $50 American Express gift check—for a potential yearly total of $200. To assist HPSOR\HHV� LQ�¿QGLQJ� WLPH� WR� UHDFK� WKH� DFWLYLW\�goals, the company blocked out one hour per day on Mondays, Wednesdays and Fridays for “Wellness Time,” in which no meetings could be scheduled and employees were encouraged to be physically active.

In order to track achievements, FitLinxx provided all participants with their own ActiPed “clip ‘n go” wireless all-day activity monitors. Employees simply attached these small devices to their shoes and the ActiPed devices automatically collected accurate activity data, including the number of steps taken, calories burned, distance traveled and total activity time.

When employees walked by wireless DFFHVV� SRLQWV� LQ� WKH� RI¿FH� RU� HPSOR\HHV¶� KRPH�RI¿FHV�� WKH� GDWD� ZDV� DXWRPDWLFDOO\� XSORDGHG�to an interactive health and activity tracking web application called “ActiHealth,” where it was displayed in real-time. When viewing their ActiHealth online communities, employees could see how they were doing against their quarterly activity goals and discern where they ranked against the total participant population.

Individuals often challenged friends or department members to see who was most active. FitLinxx, a company that has developed D�FRPSXWHUL]HG�V\VWHP�WKDW�LV�DWWDFKHG�WR�¿WQHVV�equipment that “learns” a person’s exercise program, discovered friendly competition could serve as a strong motivating force when LW� FRPHV� WR� ZHOOQHVV�� &UHDWLQJ� FRPPXQLWLHV�among workers not only encourages greater

participation and activity, but it also can improve interdepartmental relations.

The results were astounding. Almost 90 percent of employees partici-

pated in the inaugural wellness program, with QHDUO\��SHUFHQW�DFKLHYLQJ�WKHLU�JRDOV��,Q�DGGL-tion, FitLinxx found the three hours set aside for physical activity per week, along with the ¿QDQFLDO� LQFHQWLYHV�� LQFUHDVHG� HPSOR\HH� VDW-isfaction and loyalty and provided a strong recruiting tool.

Switch to CDHP and HSA7ZR�\HDUV�ODWHU��IDFLQJ�D��SHUFHQW�LQFUHDVH�

in health care premiums, FitLinxx evaluated options and decided on a new approach to address its health care situation. The company NQHZ� LW� KDG� WR� ¿QG� D� OHVV� H[SHQVLYH� SODQ� RU�it would have to pass the additional costs to employees. FitLinxx also wanted to implement a program that would take away some of the burden of increased deductibles that comes with D�&'+3�SURJUDP��

This situation and the experience with the “FitWell” program helped the company recognize a tremendous opportunity: By focusing on wellness as a corporate strategy, FitLinxx could help employees improve their well-being, reduce health care costs at the same time and increase employee satisfaction.

After much thought and planning, the com-SDQ\�EHJDQ�RIIHULQJ�HPSOR\HHV�D�&'+3�DQG�+6$��To offset the high deductible, FitLinxx integrated “FitWell” with the new health care plan, creating an incentive-based program to help employees earn money toward their HSA. To get started, the company automatically contributed one-quarter of the annual deductible amount into employee’s HSAs. FitLinxx also enabled its employees to earn up to another one-quarter of the total annu-al deductible by achieving quarterly activity goals and participating in wellness initiatives in a new incentive-based program.

7KH�JRDOV�RI�WKH�QHZ�LQWHJUDWHG�&'+3�DQG�ZHOOQHVV�SURJUDP�ZHUH�¿YHIROG��

�� Encourage an active and healthy lifestyle to improve our employees’ health and well-being.

�� Lower short-term health care premiums by increasing the HPSOR\HHV¶�GHGXFWLEOHV��EXW�RIIVHW�the increase in deductibles with ZHOOQHVV�LQFHQWLYHV��

�� Lower long-term health care premiums as a result of improved employee health.

�� Lower absenteeism and improve productivity.

�� Improve employee satisfaction.

To keep it as simple as possible, FitLinxx created two components of the new program:

First, the company kept incentives for achieving quarterly activity goals, but now made larger contributions into each HSA of those employees who participated in the new health insurance plan. Those not in the plan continued to receive $50 American Express gift checks each quarter by achieving at least one of their activity goals. Activity goals were based on &'&�JXLGHOLQHV��VWHSV�WDNHQ��PLOHV�WUDYHOHG� �WZR� PLOHV� SHU� GD\�� FDORULHV�EXUQHG�DQG��KRXUV�RI�DFWLYLW\�WLPH�

In addition, FitLinxx created wellness incentives in which employees could select from a range of wellness options each quarter to obtain additional HSA contributions. These options included annual physical exams, ÀX� VKRWV�� KHDOWK� VFUHHQLQJV�� KHDOWK� ULVN�assessments, smoking cessation classes and a weight management class. Further, the company offered free on-site biometric screenings to all employees, which could bring to light previously unknown health issues.

'XULQJ� WKH� FRPSDQ\¶V� HPSOR\HH� EHQH¿WV�UHQHZDO� PHHWLQJ� LQ� 1RYHPEHU� �� WKH� +5�department educated employees about the program that would start in January 2011, and continued with ongoing communications through posts on the company intranet, company meetings and a FAQ sheet.

Program EnhancementsIn order to maintain the effectiveness

of the program, FitLinxx continued to solicit employee feedback by email, anonymous surveys, an anonymous comment section on the intranet and monthly company meetings. This has proven very effective at adjusting program elements.

For instance, FitLinxx initially presented small trophies along with the quarterly American Express gift check to employees who met their quarterly goals—but discontinued that reward based upon their responses. Using employee feedback, the company has further enriched the SURJUDP�WR�¿W�HPSOR\HHV¶�QHHGV�LQ��

One suggestion was more quarterly wellness incentive options. Employee polling resulted in the addition of annual vision H[DPV�� GHQWDO� H[DPV�� &35�$('� FHUWL¿FDWLRQ�and free on-site quarterly wellness meetings and roundtables to the program. The last item has proven particularly popular, since FitLinxx brings in experts who provide follow-up support to individuals based upon their unique HQYLURQPHQWDO� DQG� KHDOWK� VLWXDWLRQV� �VWUHVV�PDQDJHPHQW��QXWULWLRQ��HWF��

To ensure there is strong interest and to


build employee support systems for those with the same concerns and interests, FitLinxx used an employee survey to select the four topics for the year for these sessions. In addition, employees requested higher activity goals with greater incentives as they became more active.

Examples of these more advanced TXDUWHUO\� JRDOV� LQFOXGH�� VWHSV�� PLOHV� �WKUHH� PLOHV� SHU� GD\�� FDORULHV�and 270 hours of activity time. Employees, who achieve at least one of these for a quarter, may earn up to an additional 7 percent of their health care deductible over the course of the year. The company anticipated a success UDWH� RI� �� SHUFHQW� RI� LWV� SRSXODWLRQ� DFKLHYLQJ�these augmented goals and has been pleasantly surprised that more than half of the employee population have actually exceeded their goals.

To further encourage employees to achieve higher activity goals, FitLinxx has instituted a quarterly drawing for those who have achieved these advanced goals. As a result, one employee per quarter earns an additional $250 FRQWULEXWLRQ�WR�KLV�KHU�+6$��WKRVH�ZLWK�IDPLO\�FRYHUDJH�HDUQ�WZLFH�WKDW��

Finally, the company has added semi-annual health goals, which include on-site bio-metric screenings three times per year offered DW�)LW/LQ[[¶V� WZR�SULPDU\�RI¿FH� ORFDWLRQV�� 7KH�initial screening obtains baseline numbers using the comprehensive Executive Blood Panel, DV� ZHOO� DV� EORRG� SUHVVXUH� DQG� ZHLJKW�%0,��Individual plan participants can earn an addi-WLRQDO� �� SHU� \HDU� �IDPLO\� SODQ� PHPEHUV�HDUQ� GRXEOH� WKDW�� LI� WKH\� UHDFK� WKH� IROORZLQJ�improvements: blood pressure—less than 120

RYHU��RU�LW�LPSURYHV�IURP�RQH�FDWHJRU\�WR�WKH�QH[W� RYHU� WKH� VL[�PRQWK� SHULRG�� %0,� RI� �� RU�less or 5 percent weight loss over the six-month period.

In addition, it became clear, for medical reasons, some employees simply are unable to SDUWLFLSDWH� LQ� SK\VLFDO� DFWLYLWLHV�� )RU� TXDOL¿HG�employees, the company has created an alternative program. This incorporates non-activity based wellness achievements in the DUHDV�RI�FKROHVWHURO��ZHLJKW�%0,��EORRG�SUHVVXUH�DQG� $�&� OHYHO� �EORRG� JOXFRVH� FRQWURO�� ,I� WKHVH�individuals meet all four of their goals, they UHFHLYH� WKH� VDPH� ¿QDQFLDO� LQFHQWLYHV� DV� WKRVH�participating in the activity program.

ResultsThe “FitWell” program, coupled with

a consumer-driven health plan, has enabled FitLinxx employees to take a more proactive approach to their health while keeping health care costs in line. In addition, the workforce is healthier and more energetic as program participation continues to grow.

Since inception, the company has achieved D� �� SHUFHQW� SDUWLFLSDWLRQ� UDWH� DQG� �� SHUFHQW�VXFFHVV�UDWH��PHHWLQJ�REMHFWLYHV��LQ�WKH�SURJUDP��$QG�IRU�WKH�¿UVW�TXDUWHU�RI��WKRVH�QXPEHUV�increased to 97 and 77 percent, respectively.

In addition, FitLinxx has measured a �� SHUFHQW� LQFUHDVH� LQ� GDLO\� DFWLYLW\� WLPH� SHU�employee since the inception of the program. 0HDQZKLOH��LQVWHDG�RI�WKDW�SRWHQWLDO��SHUFHQW�premium increase, the company has seen a decrease in health care costs.

Moreover, FitLinxx has seen the emergence

of a physically active culture in which people walk or run as a part of their normal daily life. Individuals from different departments, who may have never spoken to each other before, now meet for friendly walks together and the company has seen the emergence of “walking meetings.”

Overall, FitLinxx believes employees are more aware of health indicators and are leading healthier lifestyles. For example, one employee said, “The FitWell program motivates me to be more active and maintain a healthy lifestyle. During the week I walk during wellness time, and I exercise on the weekends. A year ago I ZHLJKHG� �� SRXQGV�� KDG� KLJK� EORRG� SUHVVXUH�DQG�ZDV�D�W\SH�,,�GLDEHWLF��,�KDYH�ORVW��SRXQGV��my diabetes is a memory, and my blood pressure and cholesterol are normal. And, I am no longer taking any medication.”

“FitWell” continues to evolve and grow with the company. Based upon the success of the incentive-based system, FitLinxx anticipates gradually rolling back initial contributions to HSAs in coming years, while increasing the incentive component of its wellness plan.

Although it took some time and lessons were learned along the way, the “FitWell” pro-gram has become an integral part of the com-pany’s culture. Health care costs and employee premiums are steadily decreasing, and employees are truly embracing activity. As a result, they are energized, healthier and more productive.

Andrea Newman is director of HR for FitLinxx (www.

fitlinxx.com), a provider of health and wellness devices.

Health and Wellness Program TipsBased upon our experience at FitLinxx, here are five tips when implementing a health and wellness plan:

Make it as easy as possible to participate – Try to keep the program simple and understandable – and ensure that employees don’t have to intervene to upload or track their activity. Make it seamless and effortless to use.

Communicate – Communication is key; ensure employees understand the overall objectives of the program and incentive element to gain their acceptance. To help them achieve goals, make it easy for them to find out where they stand in meeting their goals.

Develop engaging programs – Beyond financial incentives, consider employee challenges that can really get healthy competition going.

Provide incentives that motivate employees — We quickly learned that cash contributions to HSAs are an effective motivator. And we anticipate increasing incentives (while decreasing initial contributions to HSAs) in the future.

Include social support systems – Scheduled wellness sessions with invited experts have proven very popular and help to provide the support that some employees seek. In addition, by allowing employees to share their experiences and results with friends/co-workers, FitLinxx has created an employee support system that provides positive feedback to other employees when they achieve their goals.

Contribute to the Health Care Consumerism conversation by submitting an article, blog, case study, white paper, podcast or video to The Institute for HealthCare Consumerism’s collaborative, membership-based online community (www.TheIHCC.com), as part of its bi-monthly eNewsletter or in the print and digital publication, HealthCare Consumerism Solutions.

We are actively looking for content including, but not limited to:

Platforms for Your Content:

1. The Institute for HealthCare Consumerism’s Online Community

2. HealthCare Consumerism Solutions

OutlookSuperstars

3. HealthCare Consumerism Today eNewsletter

By Sharing Your Voice or Research With Us, You are Sharing it With the Health and Benefit Management Community and the Health Care Consumerism Conversation At-Large!

CALL FOR CONTENT LEARN. CONNECT SHARE.Share Your Opinions, Strategies, Case Studies, Blogs, White Papers, Podcasts and Videos Online, in our eNewsletters or in Print to Our Widespread Audience of More Than 70,000 Readers!

To Submit Content: For more information, please contact The Institute for HealthCare Consumerism CEO and Founder, Doug Field at [email protected] or Editorial Director, Todd Callahan at [email protected]

The Collective Voice on Innovative Health & Benefit Management

in our eNewsletters or in Print to Our Widespread Audience of More Than 70,000 Readers!

IHC-ContentAd.indd 1 8/9/12 1:25 PM

BY JOSH HILGERSPRESIDENT

HEALTH PARTNERS AMERICA


ASK THEBROKER

What is the employer’s role going to be in regard to health insurance in the near future?For the better part of 60 years the employer has played an integral

role in providing employees with health insurance. Most of us have been a part of that system for so long we may have never stopped to ask “why?”

Think about it. Our employer isn’t truly involved in choosing our life insurance, home

owners or renters insurance or our auto insurance. Why are they making the decisions, or at least heavily infl uencing them, on our health insurance?

If you trace this current system back to its roots, you fi nd offering health insurance was simply a way around government efforts to stave off infl ation concerns. After WWII employers, looking to attract and retain the best and brightest, were not able to do so by traditional means; compensation or bonuses. The government had instituted wage and price controls. As a way around this obstacle, employers went to the insurance companies, who at the time mostly offered catastrophic coverage, and worked out a deal to purchase benefi ts for their employees.

Now one sixth of our economy has been affected by that little work around and created a bigger problem for us now than the little bit of infl ation would have been 60 years ago.

To add more fuel to this fi re, companies began successfully lobbying Congress to treat these benefi ts as tax exempt compensation for their employees and a tax deductible business expense for the employers. This really created a snowball effect on the plan designs of the insurance offerings.

Employers and employees alike quickly realized the huge tax benefi ts to offering more comprehensive benefi t packages versus wages and monetary (taxable) compensation. Insurance carriers were encouraged to include more medical treatment options like chiropractic care, acupuncture and massage therapy. Though these were great additions, they take us away from the defi nition of “health insurance,” which should really be in place to help us with the medical bills that go into the thousands and hundreds of thousands for severe illness or accidents.

One other major factor keeping the employer in the middle of the health insurance process with their employees: underwriting. The 1970s marked the

beginning of states beginning to allow medical underwriting in the individual market. This meant employees with pre-existing conditions did not have affordable options if their employer didn’t offer coverage.

So let’s take a quick look at the pros and cons of the current system and how it is leading to a new role for employers in the near future.

ProsHelps employers attract and retain good employeesEveryone qualifi es—guaranteed issueBenefi ts purchased tax free

ConsLack of portability—Employer owns the plan, not the employee Lack of choice for employees on carrier and plan designPremiums are expensiveBurden on employer to carry these rising costs

However, there is a system beginning to emerge in the market place that addresses all of these issues. It also accomplishes another goal of most employers—get them out of the middle of the relationship between their employees and the insurance carriers.

A defi ned contribution health plan allows an employer to attract and retain employees with tax free dollars that can be used to purchase an insurance plan the employee chooses, owns, and can design to be affordable. We have seen this trend before. The retirement planning industry has almost fully transitioned from a defi ned benefi t (pension) model, to a defi ned contribution (401k) model.

Private exchanges are the perfect vehicle to aid in this transition in the health insurance market. It can educate and inform employees of their decisions, and can be backed by licensed experts to provide one-on-one consultations and service after the sale.

Many companies, large and small, have begun making the transition, including Sears and Darden restaurants, and some municipalities. Brokers, employers, and e mployees should begin to embrace their new roles in the health insurance market and prepare for the future—because it’s here.

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BY TODD CALLAHAN » EDITORIAL DIRECTORTHE INSTITUTE FOR HEALTHCARE CONSUMERSIM

EXECUTIVE SPOTLIGHT

For many, the face of Afl ac is the duck. The feathery company mascot has arguably been the star of the most successful ad campaign in U.S. marketing history.

However, while the duck maybe the face of the Columbus-Georgia based company, it is the Amos family who has helped shape the American Family Life Insurance Company into the top provider of supplemental insurance in the United States.

Founded on Nov. 17, 1955 by brothers John, Bill and Paul Amos, the company has expanded to 4,300 employees and more than 70,000 independent brokers. It protects more than 50 million individuals globally and has 465,000 employer accounts in the United States.

John Amos, the company’s fi rst president and chairman, was not an insurance expert. However, he and his brothers understood the idea people needed fi nancial protection from unforeseen expenses brought on by illness and emergencies. It is that philosophy that has carried over through three generations of Amoses and continues with John’s grandnephew, Paul Amos II, who was named president and chief operating offi cer of Afl ac in January 2007.

It is the family lineage that has built the most successful supplemental insurance provider on a global scale, but Amos doesn’t mind taking a backseat to the duck, which made its debut on a park bench in a commercial in 2000.

“Our duck has been an unbelievable blessing to our company,” said Amos, 38, who joined Afl ac as state sales coordinator of North Georgia in 2002. “We had 12 percent name recognition in 1999, and now we have 94 percent brand recognition. That puts us up there with Coca-Cola, McDonald’s and Nike. So we truly are a household name.”

Amos, whose father, Daniel P. Amos, is CEO, added the main difference between Afl ac and Nike or Coca-Cola is everyone knows the products the soft drink giant and Nike make, but very few consumers have experienced or are familiar with the products and services provided by Afl ac.

“Our key goal going forward is to try to get the average American consumer and the average American business to understand why our products are rolled up to their employees and why our products, now more than ever, are viable today, especially with the situation America is in right now.”

Despite its marketing department struggles to get the message out to employers and consumers about the products offered, Afl ac is not hurting fi nancially. The company has reported revenue growth every year for the last 10 years according to Dividend Monk.

Since naming Amos II president, Afl ac’s sales have eclipsed $10.1 billion, with average sales hovering around $1.4 billion. Amos was a cog

in the organization’s growth when he managed Afl ac’s acquisition of Continental American Insurance Company. The $100 million

merger, which created Afl ac Group Insurance, helped the company to sell innovative product lines to larger accounts

on the group platform.While the recession has hit most providers and

curbed growth, Afl ac is poised for even bigger growth despite the uncertainty of the Patient Protection and

Affordable Care Act’s future and the presidential election in November.

Afl ac is boosted by a bullish market in Japan, which is where 70 percent of Afl ac’s total revenue originates. Afl ac insures one in

four households in Japan. Since Japan has

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national health care and everyone receives government-funded health care benefits, Aflac proves it can flourish in a government-run health plan or a private health plan.

Amos doesn’t see PPACA as a dangerous law that should be repealed and replaced, he sees its passage and the U.S. Supreme Court’s decision to uphold PPACA as an opportunity to better educate consumers about the benefits of Aflac and the value of supplemental health plans.

Because PPACA focuses more on major medical, supplemental benefits are unphased by the controversial law, which has a questionable future with the presidential election looming and Republican candidate Mitt Romney promising to repeal and replace the so called “ObamaCare.”

With rising health care costs and employers continually shifting the cost onto employees, supplemental health benefits are becoming a more cost-effective tool for both the employer and the individual to help curb health care costs. Amos believes health care reform will have a positive impact on business in the long-term for Aflac.

Providing the Power of ChoiceSince Japan has nationalized health care, everyone knows they have to

pay the government-mandated 30 percent copay on that national insurance. So they see having supplemental health is not just a nice product to have but a necessity.

However, supplemental insurance also is a perfect fit in a free health care market. Regardless of whether individuals get their insurance from a private exchange, government-sponsored exchange or through an employer, supplemental health can be an enhancement to any major medical platform.

Employers have nothing to risk and can easily add more supplemental products to their menu of health care benefit options. Employees pay 100 percent of the cost for supplemental products, and they can customize the package to fit their needs, making for a more robust total health care benefit package.

“That is important because so much of what has happened in major medical has been the disappearance of choice,” Amos said. “Choice has, overtime, been lowered, and the reality is we are bringing choice back to the market place and allowing people to choose exactly what they want, and our customers have seen the value in that.”

It’s All About ConsumerismThe philosophy of Health care consumerism is about transforming an

employer’s health benefit plan into putting economic purchasing power—and decision-making—into the hands of participants or employees.

This is best achieved by supplying employees with the decision-making information and support tools they need, along with financial incentives, rewards and other benefits encouraging personal involvement in altering health and health care purchasing behaviors.

Much like account-based health plans, supplemental health care is a crucial tool in health care consumerism. According to Amos, supplemental health plans are essential to the growth of health care consumerism and work well with a health savings account (HSA) with a high-deductible health plan.

“Health care consumerism is a newer phase but the concept of health care consumerism is something that has budded out of what we have seen

with pensions,” Amos said. “It is an obvious trend because I think employers want to understand and be able to control the total cost they are going to spend on health care.”

The rising cost of health care, along with a new millennial generation, who soon will make up 50 percent of the workforce and like to be empowered and make their own decisions about how to spend their health care dollars, also are pushing this trend as the adoption of consumer-directed health plans continue to rise while enrollment of traditional health plans are beginning to decline.

Amos sees the trend of health care consumerism growing much like pension plans which have moved away from the fully-funded pension plans to a defined contribution plan, which has been considered pension consumerism.

“It has allowed an individual to become in charge of their pension,” Amos said. “With the creation of the 401(k), they [employees] became empowered to do things.”

Amos also sees Aflac playing an active role in the growth of the health care consumerism megatrend.

“We are going to fit right square in the middle of it,” Amos said. “I think health care plans are going to continue to raise copays and deductibles, and they are going to start offering less and less because of the rising cost of health care, and as a result, the need for our type of product is going to grow greater and greater.”

Paul S. Amos II FileTitle: President, Aflac & COO, Aflac

U.S. Company: AflacAge: 38Residence: Columbus, Ga.Education: bachelor’s degree from

Duke University; master’s in business administration from Tulane University.

Career Timeline2002 – Joins Aflac and serves as

state sales coordinator for Georgia-North Operation

2005 – Named executive vice president of U.S. Operations2006 – Named COO2007 – Named President; Aflac sales eclipses $10.1 billion2009 – Manages Aflac’s acquisition of Continental American

Insurance Company, a $100 million merger and Aflac’s first ever acquisition. The merger creates Aflac Group Insurance.

2011 – For first time Aflac group policy sales higher than individual policy sales

2011 – Aflac’s assets at year-end 2011 totaled more than $117 billion with annual revenues of more than $22.2 billion.

WWW.THEIHCC.COMWHO’S WHO PROFILES

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HSA/HRA/FSA TECHNOLOGY: ADMINISTRATION & MANAGEMENT

TSYS Healthcare® provides end-to-end strategic payment solutions for consumer directed healthcare. We partner with benefits administrators, financial institutions, health plans, and software providers to navigate all aspects of HSAs, HRAs, FSAs, transportation accounts, cash reimbursements, and lines of credit. TSYS Healthcare cards offer participants the security they expect along with the ability to conveniently access funds from multiple accounts and manage their benefits payments with simplified single-card access. Clients and partners benefit from simplified processes, reduced paperwork and cost savings that can contribute to improved return on investment.

“We built the TSYS Healthcare platform to meet the market demand for reliable, configurable and intelligent solutions. Understanding the dynamic U.S. healthcare market, our customers rely on our option-driven system to prepare them for the future.”

— Trey Jinks, Group Executive, TSYS Healthcare

TSYS [email protected]

DECISION SUPPORT & COST-SAVINGS TOOLS

My HSA Rewards allows individuals to earn cash rewards for purchases made through merchants participating in the program. At launch, the merchant network consists of hundreds of major online retailers representing thousands of brands. The program works like an airline mileage program, but, instead of earning miles, participants earn cash rewards that are directedto a health savings account (HSA). There is no cost to the employer or the employee to join.

“If you want to grow your Health Savings Account faster and with ease, My HSA Rewards is a smart and simple way to put real cash into your HSA from the purchases you make every day.”

— Sanders McConnell, President, My HSA Rewards

MY HSA REWARDS12460 Crabapple RoadSuite 202-254Alpharetta, GA 30009 [email protected]

HSA / HRA / FSA ADMINISTRATION AND FINANCE

Evolution1 and its Partners serve more than seven million consumers, making it the nation’s largest electronic payment, on-premise and cloud computing healthcare solution that administers reimbursement accounts, including HSAs, HRAs, FSAs, VEBAs, Wellness and Transit Plans. It is the only solution that meets more than 1,200 unique plan designs, provides innovative auto-substantiation technologies, simplifies user experience, and automates workflow for Partners, employers, and consumers. It does all this on one technology platform comprised of Lighthouse1™, PayDirect®, the Benny® Prepaid Benefits Card, Lighthouse1 OneCard™ and integrated web portals. Evolution1 and its Partners are dedicated to delivering value, reducing costs and simplifying the business of healthcare.

EVOLUTION1, [email protected]

“The combination of our innovative products will further our leadership position in a rapidly changing healthcare market. Together with our Partners we are committed to reducing costs and simplifying the business of healthcare.”

— Je# Young Chairman and CEO, Evolution1

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WWW.THEIHCC.COM WHO’S WHO PROFILES


Since 1988, Flex has provided comprehensive, benefit reimbursement services to employers throughout the U.S. that are better, faster and more seamless than any in the marketplace. We are advocates of consumer-driven health plans and have fully-dedicated ourselves to the strategic concept of tax-advantaged and account-based programs. Our core portfolio includes:Q COBRA AdministrationQ Flexible Spending Accounts (FSAs)Q Health Reimbursement Arrangements (HRAs)Q Health Savings Accounts (HSAs) – Employer & Individual Solutions!Q Transit/Parking Reimbursement Accounts (TRAs)Q And more!

Our robust, integrated resources provide everything employers need to integrate Flex Plans, including scalable features, simplified transactions/reimbursements, plan design expertise, education/ communication resources and online access.

Just Flex It™ today and discover how simple benefits administration can truly be.


FLEXIBLE BENEFIT SERVICE CORPORATION (FLEX)10275 W. Higgins Road, Suite 500 Rosemont, IL 60018

www.JustFlexit.com [email protected]

DataPath, Inc., is one of nation’s largest providers of CDH solutions specializing in account-based administration systems.

Since 1984, service providers using DataPath systems have provided administrative solutions for over 1 million participants of FSA, HRA, HSA, and COBRA. DataPath is the only solutions provider to design and deliver a full Suite of systems for handling 125, 105, 132, COBRA, HSAs, Credit and Debit Cards all delivered to account holders through a single Internet portal, myRSC.com.

“With the significant changes in healthcare today, our software solutions allow users to create custom plans for clients that benefit both the employer and employee. Not only have we created a single platform for all systems with myRSC.com, with the integration of our mySourceCard® Debit Card at Wal-Mart and other retailers, our clients are able to offer a hassle-free solution with 100% compliance.”

DATAPATH, INC.1601 WestPark Drive, Suite 9Little Rock, AR 72204

501.296.9990www.dpath.com


LifeSynch changes behaviors to improve lives. Our approach integrates care of the mind and body to enhance health, increase productivity and minimize unnecessary medical expenses. Built on a solid foundation of understanding human behavior and how to motivate behavior change, we deliver proven outcomes through:

“Whether it’s LifeSynch’s health coaching, EAP/Work-life, integrated medical-behavioral health or utilization management services, we integrate our behavioral health and behavior change expertise to ensure our members reach their goals and achieve sustainable, long-term improvements toward their health and well-being.”

– Sean Slovenski, President of LifeSynch,

LIFESYNCH2101 W. John Carpenter FrwyIrving, Texas 75063800-207-5101www.lifesynch.com

TOTAL POPULATION HEALTH MANAGEMENT

Q Proven methods that lead to increased engagement and sustained behavior change.

Q Clinicians and coaches who provide personalized attention and form trusted relationships with members.

Q Customizable programs that easily incorporate into existing benefits and services.

Q Scientifically proven best-practice guidelines to proactively manage care.

Q Scalable, user-friendly technology.

SUPPLEMENTAL HEALTH

Delta Dental leads the industry in designing innovative dental coverage programs that keep costs down and deliver quality care. Our diverse client list includes everyone from Fortune 100 companies to public agencies to individuals and families. Our customer’s satisfaction is based on our expansive dentist network, cost-saving mechanisms and superior customer service. We are part of the Delta Dental Plans Association that provides dental coverage to more than 56 million people in the US.

DELTA DENTAL1130 Sanctuary Pkwy, Suite 600Alpharetta, GA 30009

770-641-5196


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FSA/HRA/HSA/TRANSIT/COBRA: ADMINISTRATION & MANAGEMENT

efl exgroup (efl ex) is a nationwide administrator of pre-tax benefi ts and COBRA. Committed to providing fast answers, fast claims, and web self-service, we set the industry standards for service. With a customer focus and Lean Six Sigma methodology, we don’t talk about service, we prove it. See our metrics at efl exgroup.com.

“efl exgroup’s customer service department should be a model for ALL customer service departments. The courtesy, professionalism and knowledge surpass ANY customer service department I’ve encountered! I feel the outstanding, exemplary customer service of efl exgroup is simply the best!”

— Kimberly Adams, Southeast Energy Assistance [testimonial]

efl exgroup2740 Ski LaneMadison, WI 53713

877.933.3539 ext 300 www.efl exgroup.comefgsales@efl exgroup.com

HEALTH DECISION SUPPORT TOOLS

Castlight Health enables employers, their employees, and health plans to take control of health care costs and improve care. Named #1 on The Wall Street Journal’s list of “The Top 50 Venture-Backed Companies” for 2011 and one of Dow Jones’ 50 Most Investment-Worthy Technology Start-Ups, Castlight Health helps the country’s self-insured employers and health plans empower consumers to shop for health care. Castlight Health is headquartered in San Francisco and backed by prominent investors including Allen & Company, Cleveland Clinic, Maverick Capital, Morgan Stanley Investment Management, Oak Investment Partners, Redmile Group, T. Rowe Price, U.S. Venture Partners, Venrock, Wellcome Trust and two unnamed mutual funds.

Giovanni Colella, M.D.CEO and Co-Founder, Castlight Health

CASTLIGHT HEALTH85 Market Street, Suite 300San Francisco, CA 94105

415.829.1400www.castlighthealth.com

PROFESSIONAL DEVELOPMENT

Health Insurance 101: An Orientation is a new, fl exible online course offered by AHIP.

It is designed to teach health insurance basics to those new to health care or individuals who wish to review the fundamentals. The course is formatted in short modules; you learn at your own pace and on your own time, moving through the materials as you choose. Plus, AHIP will customize the course to fi t your organization’s specifi c learning requirements.

AMERICA’S HEALTH INSURANCE PLANS 601 Pennsylvania Ave., NWSouth Building, Suite 500Washington, D.C. 20004Lindsey Miranda Canaley

Tel: 800.509.4422Fax: 202.861.6354 [email protected] www.ahip.org/courses

Envision Pharmaceutical Services, Inc is a full service pharmacy benefi ts management company that delivers! We deliver because our business model is based on transparency and full disclosure, guaranteeing 100% pass through pricing of all pharmaceutical manufacturer rebates and administrative fees at the point-of-sale. Additionally, our affi liate, Envision Insurance Company, is a national Prescription Drug Plan which enables us to offer a variety of solutions for your retirees. Envision is truly a “different” PBM!

“Envision is pleased to be recognized by its clients surveyed by the Pharmacy Benefi ts Management Institute for three consecutive years as the top performer in virtually every category evaluated. This solidifi es our leadership position in providing transparency and full disclosure to the PBM marketplace while continuing to fi nd innovative solutions.”

— Kevin M. Nagle, President & CEO, Envision Pharmaceutical Services/Rx Options

PHARMACEUTICAL BENEFITS MANAGEMENT

ENVISION PHARMECEUTICAL SERVICES, INC.John Ewell, EVP Marketing

[email protected]

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WWW.THEIHCC.COM WHO’S WHO PROFILES


HEALTH INCENTIVES

MedEncentive offers a

patented, web-based

incentive system that’s been

independently validated

to control healthcare

costs. Doctors and patients earn financial rewards for

declaring adherence to best practices and healthy

behaviors, provided they agree to be accountable to

the other party for doing so. Easy to implement and

embraced by users.

MEDENCENTIVECecily HallExecutive Vice President

[email protected]

Transitions Optical, Inc. is the maker of Transitions® lenses, the #1-eyecare professional recommended photochromic lenses worldwide.

Transitions Healthy Sight Working for You® is an education initiative that helps HR professionals and benefits professionals communicate the value of the vision benefit to employees. More information and complimentary education tools are available at HealthySightWorkingForYou.org.

“Don’t overlook your employees’ healthy sight when thinking about your business goals. A vision benefit that includes an eye exam and sight-optimizing eyewear helps ensure that employees see their best, so they can do their best work, directly affecting your business.”

— Pat Huot, Director, Managed Vision Care

TRANSITIONS OPTICAL9251 Belcher RoadPinellas Park, FL 33782

800.533.2081 ext. [email protected]

SUPPLEMENTAL HEALTH

WeCare TLC is a medical risk management company that leverages onsite primary care clinics to provide solutions to rising healthcare costs while improving patient health and wellness.

Our holistic approach to care empowers the clinic staff to act as patient advocates, which increases compliance and decreases unnecessary expensive services.

“Healthcare is now a right and employers are faced with the challenge of truly managing their healthcare costs. We have created a unique medical home clinic model that properly addresses quality of care and cost. This requires constant, aggressive, creative, and directed attention to accomplish but it can be done.”

— Lynn Jennings, CEO, WeCare TLC

HEALTH ACCESS ALTERNATIVES

WE CARE TLC120 Crown Oak Centre DrLongwood, FL 32750

800.941.0644 [email protected]

ExperienceLab has created a breakthrough, patented communication program that saves employers money by increasing adoption and usage of consumer directed health (CDH) insurance plans among their employees. CDHCentric, sold on a subscription basis, delivers regular, multi-media communications that are tailored based on seven unique attitudinal segments developed from proprietary research.

Traditional health plans protect employees from having to learn the basic skills for making cost-effective healthcare decisions. Our segmentation research, which is based on 20 years of behavioral marketing, found 7 unique personality types, and each makes healthcare decisions differently. The result is that, when employee messages are correctly tailored to their personalities, employees become health care consumers!

— Roger Travis, President

CDHCENTRIC507 S. 8th Ave. Bozeman, Montana 59715

617.224.6223 [email protected]

EMPLOYEE COMMUNICATION AND EDUCATION

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ADVERTISING CONTACTS

AHIP .................................................. 20, 48

Best Buy ..................... 24, Inside Back Cover

Castlight ....................................................48

Delta Dental ...............................................47

CDHCentric ............................................... 49

Cigna ....................................................... 10

CodeBaby ................................................. 50

DataPath .................................................. 47

efl exgroup ................................................ 48

Envision Pharmaceutical Services ...............48

Evolution1 ..................................................46

Flexible Benefi t Service Corporation ...........47

HealthCare Consumerism Radio ..................26

HealthStat ........................ Inside Front Cover

IHC About the Institute ...............................42

IHC Corporate Member ...............................38

IHC FORUM Save the Date ..........................15

IHC FORUM Call for Speakers .....................28

IHC Health and Wellness Library ................40

IHC Membership ...........................................9

LifeSynch ...................................................47

MedEncentive ............................................49

MyHSARewards ..........................................48

Transitions ............................................... 49

TSYS Healthcare ................................... 5, 46

WeCare LLC .............................................. 49

Wiser Together ................................... 38, 50

UnitedHealthCare .........................Back Cover

ADVERTISING INDEX

404.671.9551

CEO/PUBLISHER

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MANAGING DIRECTOR

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ACCOUNT MANAGERS

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R E S O U R C E G U I D E



EMPLOYEE ENGAGEMENT TOOLS

Under the CIVA (CodeBaby Intelligent Virtual Assistant) brands of benefi ts and health advisor, CodeBaby improves the healthcare consumer experience and optimizes online self-service on any web-based platform or device with absolutely no IT disruption. Benefi ts advisor offers guidance and self-service options that help consumers and organizations alike to make better decisions about benefi ts selection. Health advisor engages new patient visitors on hospital or offi ce websites or existing patients on wellness, prevention & disease management platforms.

“With the rapid changes in health care, our solutions provide organizations innovative ways to optimize their current platform while meeting the demand for an enhanced online experience. CIVA benefi ts and health advisor solutions are industry-leading models that help consumers and organizations more effi ciently navigate complex health benefi t exchanges and patient portals. “

-Dennis McGuire, CEO

CODEBABY CIVA111 S. Tejon St. Suite 107Colorado Springs, CO 80903877.334.3465codebaby.com/[email protected]

HEALTH DECISION SUPPORT AND COST-SAVING TOOLS

WiserTogether Inc., helps patients

choose the right care at the time. It

offers an innovative online treatment

selection & shared decision support

platform that helps patients make

evidence-based, cost effective

treatment decisions across musculoskeletal, cardiovascular, mental health,

diabetes, pregnancy and respiratory illnesses saving payers money. Currently

1.5 million members have access to the platform through employers and health

plans in the country.

WiserTogether was founded in 2008 and is based in

Washington, DC.

— Praveen Mooganur, COO

WISER TOGETHERPraveen Mooganur

202.276.3074

[email protected]

ADVERTISER: Best Buy AGENCY: SCHERMER AD TITLE: Health and Wellness PUB: CDHC Solutions TRIM: 8.125" x 10.875" BLEED: .125" SAFETY: .25"

NO FEES.NO EXPIRATION DATES.JUST HAPPINESS.™

BEST BUY® GIFT CARDS GIVE EMPLOYEES SOMETHING TO WORK (OUT) FOR

OFFER A LITTLE DESSERT WITH YOUR HEALTH AND WELLNESS PROGRAMThe secret to keeping your employees focused on their wellness is right in front of you. Best Buy Gi! Cards not only have the power to promote wellness programs like smoking cessation and weight loss, they’re also a great way to congratulate and say thank you, with stu" they really want.

Learn more at 877-370-1234 | Gi! [email protected] | CorporateGi! Cards.BestBuy.com/CDHC

BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528

BEST BUY® GIFT CARDS GIVE EMPLOYEES SOMETHING TO WORK (OUT) FOR BEST BUY® GIFT CARDS GIVE EMPLOYEES SOMETHING TO WORK (OUT) FOR

OFFER A LITTLE DESSERT WITH YOUR OFFER A LITTLE DESSERT WITH YOUR OFFER A LITTLE DESSERT WITH YOUR OFFER A LITTLE DESSERT WITH YOUR OFFER A LITTLE DESSERT WITH YOUR HEALTH AND WELLNESS PROGRAMHEALTH AND WELLNESS PROGRAMHEALTH AND WELLNESS PROGRAMThe secret to keeping your employees focused on their wellness is right in front of you. Best Buy The secret to keeping your employees focused on their wellness is right in front of you. Best Buy The secret to keeping your employees focused on their wellness is right in front of you. Best Buy Gi! Cards not only have the power to promote wellness programs like smoking cessation and weight Gi! Cards not only have the power to promote wellness programs like smoking cessation and weight Gi! Cards not only have the power to promote wellness programs like smoking cessation and weight loss, they’re also a great way to congratulate and say thank you, with stu" they really want.loss, they’re also a great way to congratulate and say thank you, with stu" they really want.

Learn more at 877-370-1234 | Gi! [email protected] | Learn more at 877-370-1234 | Gi! [email protected] | CorporateGi! Cards.BestBuy.com/CDHCCorporateGi! Cards.BestBuy.com/CDHC

BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528


BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2011 BBY Solutions, Inc. All Rights Reserved. 10528


BEST BUY® GIFT CARDS GIVE EMPLOYEES SOMETHING TO WORK (OUT) FOR

OFFER A LITTLE DESSERT WITH YOUR HEALTH AND WELLNESS PROGRAMThe secret to keeping your employees focused on their wellness is right in front of you. Best Buy Gi! Cards and e-Gi!Cards, not only have the power to promote wellness programs like smoking cessation and weight loss, they’re also a great way to congratulate and say thank you, with stu" they really want.

Learn more at 877-370-1234 | [email protected] | CorporateGi!Cards.BestBuy.com/CDHC

BEST BUY, the BEST BUY logo and the tag design are trademarks of BBY Solutions, Inc. © 2012 BBY Solutions, Inc. All Rights Reserved. 10528

Engaging consumers to make informed health care decisions UnitedHealthcare’s consumer-driven health (CDH) plans were designed to get employees on the path to good health with improved lifestyle habits and use of the health care system, and greater transparency to help drive better decisions. !at’s why our plans o"er:

and even doctor; as well as expenses related to possible care paths

tools to implement and successfully maintain its consumer-driven health plans.uhctogether.com/CDH or call 1.866.438.5651.

myHealthcare Cost Estimator is currently available to many UnitedHealthcare members, and will launch in additional markets throughout the remainder of the year.©2012 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health plan coverage provided by or through a UnitedHealthcare company. UHCEW506202-002

READY. SET. GROW HEALTHY. UHCTOGETHER.COM/CDH

healthcare consumerism solutions sep/oct 12

Documents

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