Building a Sustainable WELLNESS Strategy 2015

What is Wellness? active process awaremaking choices successful Wellness is an active process of becoming aware of and making choices towards a more successful existence -National Wellness Institute 2

Why Wellness? 3

Why Wellness? 75 cents of every dollar “Largely preventable and highly manageable chronic diseases account for 75 cents of every dollar we spend on health care in the U.S.” –Kaiser Family Foundation, 2014 CDC: Four modifiable health risks account for a majority of chronic diseases: - Tobacco use - Tobacco use - Poor eating habits - Poor eating habits - Lack of physical activity - Lack of physical activity - Excessive alcohol consumption - Excessive alcohol consumption 4

Why Wellness? A well designed, long-term strategy… Improves the health, well-being & engagement of employees (& their families) Enhances morale, productivity & safety Enhances organizational performance Enhances recruitment and retention Contains cost 5

is the key to success Engagement is the key to success The following components are critical to engagement: A long term strategy Executive & mid-level support A culture that supports wellbeing Defined accountability Participant access Confidentiality An effective communication strategy Measurable outcomes (employee & employer) Meaningful incentives 6

Case Study: Case Study: The Reynolds Company Who are we? Supplier of electrical, industrial automation, switchgear, lighting and datacom products Multiple locations in Texas and Louisiana Professional and warehouse staff Non-unionized Low turnover Average age: Female 40; Male 37 26% Female; 74% Male All employees have internet access 7

Case Study: Case Study: The Reynolds Company 8 ProviderHumana Principal Wellness Company (PWC) United Healthcare (UHC)Viverae Year Population Insured Employees All EmployeesInsured EmployeesAll Employees Eligible Incentive $250 drawing $300 H.R.A or H.S.A contribution $75/quarter H.R.A or H.S.A contribution up to $350/yr in gift cards SAME as 2010; +$600/yr medical premium incentive $600/yr medical premium incentive $600/yr medical premium incentive Strategy Health Assessment Health Assessment & Screening Heath Assessment, Screening & Coaching or Activities Health Assessment & Coaching Health Assessment, Screening & Coaching Health Assessment, Screening & Coaching/Activities (Wellness Score) Health Assessment, Screening & Outcomes or Alternative Standards Participation23%64%47%45%58%42%36% Our Journey…

Case Study: Case Study: The Reynolds Company What we learned: The importance of maintaining a consistent program/platform and selecting one, long-term vendor partner Implications : Risk classifications and measurements of success differ - Measuring program success at the employer and participant level difficult - Leadership support suffers Program access, components and relationships (health coaching) change - Engagement and culture suffers 9

Case Study: Case Study: The Reynolds Company Successes The data: - Average number of risk factors decreased 4%¹ - High/very high risk blood pressure decreased 43%¹ - Compliance of annual physicals, well-women exams, mammograms and prostate exams increased¹ - While the number of claimants with musculoskeletal claims increased 28%, the total spend decreased 47%² Employee feedback and individual achievements Viverae cohort data: 115 participants United Healthcare claims: Utilization by Diagnosis

11 Impact of Health Care Reform Provisions for preventive care coverage and treatment HIPAA non-discrimination testing - Increased incentives for a health-contingent programs: Wellness: up to 30% Tobacco: up to 50% - Tobacco use declaration (3 options) - Alternative standard: Upon completion the participant must receive the same total reward during the plan year Affordability testing These statements are not intended to serve as legal advice and nothing contained in this presentation should be considered legal advice.

12 Compliance Until we receive formal guidance from the EEOC: Promote a program that is reasonably designed to promote good health and prevent disease Communicate the program and incentives as a benefit Allow participants to qualify for the incentive at least once per plan year Offer a program that is available to all “similarly situated individuals” & communicate the availability of an alternative standard on all collateral If insured spouses are eligible, they should complete their own “steps” Limit your incentive(s) to 30% (or less)or 50% if the program is designed to address tobacco use. Non-wellness participant premium must satisfy affordability testing Ensure participant confidentiality Use aggregate reporting to promote health and prevent disease These statements are not intended to serve as legal advice and nothing contained in this presentation should be considered legal advice.

Questions

Leah T. Scoggins, MS Higginbotham Wellness & Health Risk Management Practice Leader Kim Wilborn-Haygood, PHR The Reynolds Company Director of Human Resources