Transforming Society: Workplace Wellness Programs IRF EDUCATION DAY OCTOBER 4, 2011.

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Presentation transcript:

Transforming Society: Workplace Wellness Programs IRF EDUCATION DAY OCTOBER 4, 2011

Agenda (HIDDEN) TimeTopic 2 minVideo of the American lifestyle (tees up the issue visually) 10 minState of Wellness : Wellness defined 13 minWellness programs – Overview 13 minWellness Incentives Overview of incentives (law, types, etc.) Non-cash incentives – evolution and application 5 minSo what? How wellness can impact your (business) health!

Health Globally..\..\..\Video\Dean Ormish.mpg

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State of Wellness in US

MORE ON HEALTHCARE THAN COFFEE

We’re #1! US Ranks # 1 per capital health spending # 36 life expectancy # 39 infant mortality # 43/42 adult mortality.

The US Standard

“IF 70% OF CHRONIC DISEASES ARE DIRECTLY RELATED TO LIFESTYLE CHOICES, THEN WE’VE GOT TO…ADDRESSES THE 20% OF THE POPULATION THAT DRIVES 80% OF HEALTHCARE COSTS” We have met the enemy…

Major Health Risks

Personal and Financial Crisis! Since 1950, Healthcare costs increased 247 times! Healthcare spending = 17.6% GDP “25 by 25”

Wellness Programs – Overview

Wellness Programs wellness initiatives Allow organizations to be proactive in preventing illness and promoting healthier lifestyles for employees workplace wellness Programs designed to improve the health and well-being of employees (and their families) to enhance organizational performance and reduce costs

Wellness Program Focus Behaviors and health risk factors Reduce chronic illness Provide continuum of support

Wellness Program Elements Awareness / Education Health Risk Assessments Activity and Weight Mgmt Behavior Modification

Wellness Program Rationale Source: American Institute for Preventive Medicine

Effective Wellness Program Design  Culture of wellness  Executive example  Baseline data  Long term view  Communications & education  Confidentiality of data  Incentives & Rewards  Employee engagement  Individual and participation Options  Vendor management  Measurement  Verification  Legality

Wellness Incentives – Overview

Incentive Legislation (HIDDEN SLIDE)

Wellness Legislation HIPAA No Discrimination 20% Cap on Attainment Incentives PPACA Attainment incentives up to 50% of coverage cost

Incentives to the Rescue! “Changing behaviors is the most significant challenge…” Non Cash awards increased voluntary participation by 64%!

National Business Group on Health (Helen Darling, President of the National Business Group on Health, Safety & Health Magazine, June 2005 ) “The best way to help employees without turning them off is to use positive incentives, not negative, and give lots of options.”

Incentives Are Crucial Can’t obtain participation goals without incentives – Watson Wyatt For 50% HRA Participation: $50 incentive

Incentive Thresholds Participation increases 7% for each $100 increase in incentive value. For 60% participation in broad wellness programs: invest $356 For 60% participation in HRA completion: invest $163

How Incentives Used 89 % of corporate wellness programs offer incentives:  Merchandise and gift cards (53%)  Promotional items (44%)  Pre-tax cash in HSA or FSA account (32%)  Health plan premium discount or credit (32%)  Mandatory HRA to participate in benefits (15%) Michael Nadeau, President and Chief Executive Officer, Viverae

Change in Incentive Usage Survey of NAM and ERC Membership

So what? How wellness can impact your (business) health!

Next Steps Workplace Wellness Study provides comprehensive resource Lead by example (your wellness program?) Umbrella recognition program - include wellness Employee engagement – recognition and wellness key elements Travel, merchandise, cards, and premiums as usual, drive results!

What Comes Next?

31 Give us “The One Big Thing”