michigan purchasers health alliance kellogg company september 18, 2008
TRANSCRIPT
Michigan Purchasers Health Alliance
Kellogg Company
September 18, 2008
• Strategy• Programs• Coaching ROI
AgendaAgenda
Benefit strategyBenefit strategy
Competitive position
Actual (salaried)
95
Goal
100
Cost
Actual (4 year CAGR)
Active health – 3.0%
Benefit trend – 3.5%
Goal
Active health – 0%
Benefit trend - @ inflation
Employee Health
Actual (2007)
65% low risk (+2 from 06)
Goal
70%-80% low risk
Productivity
Actual
17% report medical issues
Goal
10% report medical issues
Employee Satisfaction
Actual
67% satisfied
Goal
70% satisfied (56% norm)
• Feeling Great• Screening/Health Assessment
• Weight Loss Challenge
• Holiday Hold Out
• Weight Watchers at Work
• Go The Distance
• Flu Shots
• Coaching
• Incentives
• Rec Leagues
• Corporate Cup
HealthHealth
Overall Program Comparison 2006Overall Program Comparison 2006
Program Participation 2005 2006 TotalsLM-12 DM LM-12 DM To Date
# of Eligible 742 222 845 562 2,371# of Enrolled 324 132 277 175 908% of Eligible Enrolled 44% 59% 33% 31% 38%% Still Active 0% 0% 2% 18% 5%
Return on InvestmentReturn on Investment
• The model used to calculate the ROI is based of research conducted by the Health Enhancement Research Organization (HERO).
• HERO determined the cost of a particular risk using a large database of individuals tracked over 3 years.
• Risks have been adjusted for medical inflation.
• The total benefit per resolved risk is calculated by multiplying the inflation adjusted HERO risk costs by the actual number of risks resolved.
• An ROI is generated by comparing the total program costs with the benefit savings.
Outcomes – Lifestyle ManagementOutcomes – Lifestyle Management
Kellogg 2006 Top 8 Risks Pre & Post LM12
0
50
100
150
200
250
Weight Cholesterol Exercise Hypertension Stress Life Sat Tobacco Safety
Numb
er of
Risk
s
Starting Ending
Outcomes – Disease ManagementOutcomes – Disease Management
Kellogg 2006 Top 8 Risks Pre & Post DM
0
20
40
60
80
100
120
140
Weight Cholesterol Back Pain Exercise Diabetes Hypertension CAD/CVD Stress
Num
ber o
f Risk
s
Starting Ending
Kellogg Overall Program Comparison Kellogg Overall Program Comparison
Total ROI 2005 2006 TotalsLM-12 DM LM-12 DM To Date
Enrollment Cost $51,840 $32,640 $44,320 $44,625 $173,425Estimated Benefit $79,889 $30,825 $63,167 $70,890 $244,771Year 1 ROI Forecast 1.54 0.94 1.43 1.59 1.41
Questions?Questions?