The “Win / Win” of a Focus on Wellness Presented by: Noel R. Baril Vice President – Total Rewards Henry Ford Health System

The Henry Ford Health Philosophy Henry Ford Health System strives to embrace a Culture of Health through our health care strategy We offer health benefits to positively impact the health and productive lives of our employees, their families and the community We consider benefits an investment, rather than an expense: Use health status to drive desired outcomes Incorporate “Value” Wellness (health) into benefit design

HFHS Asks Employees to Self-Report Their Health Risks HRA: Risk Prevalence Condition/Issue HFHS HealthMedia Weight (BMI 25+) 66% 63% Depression (Yes or Currently being treated) 18% 30% Insomnia (6 hours or less sleep) 26% 27% Stress (Fairly or Very often) 14% 29% Chronic Conditions (1 or more) 45% 43% Tobacco Use (Yes) 10% *Derived from aggregate data taken between September 2009 to November 2010, with 20,259 participants.

Understanding the ‘Costs’ of Productivity Impairment Payroll of $1B @ $20 per hour 22,000 employees work 46M hours (2,080) $5M per hour $7,500 per minute Challenge: Maximize productivity Realizing 1% unproductive time equals $10M Consider the impact of poor health conditions Migraines Lower back-pain Carpel tunnel pain Impairment hurts employee, productivity, and ultimately engagement in your organization 4

How Can We Improve the Health of Our Community? To improve the health status of our employees, HFHS focuses on three areas: Providing incentives that motivate employees (and families) to improve their health and reduce their health risks Significant co-pay incentive (no deductible) Creating a culture of wellness Wellness Champions, Inclusion of Workplace Safety Managing chronic conditions Member Qualification Form HFHS and HAP effectively use incentives across all three of these areas to reduce health risks, improve health and improve patient self-management.

HAP’s Health Engagement Program is a Key Tool Two-tiered HMO plan design: Enhanced with lower co-pays and lower/no deductible Standard with same level of benefits, higher co-pays and deductible Employees start in the Enhanced benefit level Within 90 days, participants must: Complete the HAP online iStrive HealthMedia Health Risk Assessment Visit their Personal Care Physician and Successfully complete the Member Qualification Form HAP’s Health Engagement program incorporates personal responsibility into its benefit designs. Members become active partners in maintaining their health. Those who commit to health improvement goals save money on out-of-pocket costs. Those who don’t will pay higher out-of-pocket costs when they utilize health care services.

HAP Health Engagement Participation at HFHS Participation target was 70 percent Actual participation was 85.48 percent Henry Ford partnered with HAP in the rollout of Health Engagement to maximize impact with employees

Health Engagement: Closing the Gap Level 1 Level 2 Level 3 2011 2012 2013 Must (within 90 days): * Complete HRA * Complete MQF (score 85 or >) Agree to treatment plans to achieve wellness targets Must (within 90 days): * Complete HRA * Complete MQF (score 85 or >) Achieve treatment plan wellness targets Must (within 90 days): * Complete HRA * Complete MQF (score 85 or >) Achieve treatment plan wellness targets and other requirements Level Represents the year the member joined Health Engagement

According to Health Media, Inc.: Wellness Programs Are Working! This translates to: $1 M in medical claims $5 M in increased productivity For every point lifestyle improves, HFHS saves per employee: $30 on medical claims annually $140 in improved productivity 2 points 5,9200 20,259 # of participants 4,200 5,000 890 6,300 Source: Dr. Vic Strecher, Health Media Inc. ENGAGE Conference, May 2010 Health Engagement

In Closing…The Challenge We must intensify our focus on wellness — as individuals, as business leaders, and as a society in order to break the unsustainable cycle of risky health behavior and chronic disease. HFHS and HAP continue to learn lessons that will help us to create a supportive wellness environment across Michigan.