Employee Assistance Programs & Wellness Programs By: Ryan Okimura Guillermo Garcia Wiqar Shah “ AD ” Kullar ….Please Find a Seat … Sit Back..Relax..and Enjoy the Show!

What are Employee Assistance Programs? A confidential and comprehensive program of counseling services for employees and their families Designed to reduce risk, cut costs, and enhance employee productivity

What are Employee Assistance Programs? Some EAP providers offer such services as retirement assistance, wellness/health promotion and fitness, and crisis management Further examples include: Alcohol & substance abuse, domestic violence, and stress management

What are Wellness Programs? Cost effective employee benefits that can improve employee health and morale and limit healthcare costs Main objective is prevention and organizational wholeness Examples include: exercise and relaxation classes, financial counseling, and weight management

History Beginning in the mid 1960’s to mid 1970’s, workplace counseling focused on addiction – alcohol and drug problems Mid 1980’s – the impact of health benefit cost containment approaches brought about considerable change and consolidation Today, the market is divided among several large, national behavioral health and assistance providers

Implementation Internal/In House Consortia Fee-for-Service Contracts Fixed-Fee Contracts Peer-Based Programs

Why offer Employee Assistance Programs? Unlimited positive outcomes Leads to a more energetic, positive and productive workplace Reduced employee turnover, lower overall health care costs, and reduction in on-the-job accidents and injuries

Why offer Employee Assistance Programs? Up to 68% of all workers will, at some time, experience workplace problems severe enough to prevent them from coping with day-to-day activities As a prevention tool As a form of managed care As a multi-purpose human resource tool As a way to show you care

Video: “How Your EAP Can Help”

Cost Issues 3:1 Return on Investment in 1 st year 4:1 Return on Investment thereafter Johnson & Johnson spend $4.5 million on preventive health care programs Estimates that without preventive measures, medical bills would be at least $13 million or higher

Cost of Implementing an EAP Annual EAP Costs per Number of Company Employees Number of EmployeesCost Range Cost Mean Number of EmployeesCost Range Cost Mean More than 5,000$14-25$ $24-60$ ,000-5,000$17-39$ $29-75$ ,000$21-36$25.00Fewer than 25$30-100$ $23-45$27.31Consortium$10-25$18.00

What can an EAP do for your company? High Return on Investment Lower Medical Claims Decreased Use of Mental Health Insurance Reduction in Employee Turnover Increase in Employee Productivity

Corp Care Video

INTERMISSION Please enjoy a cold beverage at Round Table! Presentation will resume in 25 minutes.

Not Having an EAP Will…. Reduce Productivity Reduce Morale Reduce Profits Increase Health Care Costs Increase on-the- job Accidents

Current Problems and Issues 2003 survey showed only 47% of companies offered exercise and fitness programs Lack of participation if companies do offer them Many smaller and medium sized firms are still in the process of implementing EAPs

Issues Employees are afraid to seek help in fear employer may find out State of Denial of problems

Cost Savings in Action! Several national studies have demonstrated that EAP’s provide a payback of between $4,000 and 7,000 for every $1,000 invested Abbot Lake County showed a 6 to 1 payback through savings in health insurance premiums

Wellness Programs Examples

Stress A recent study by the National Institutes of Health indicates that 70% of all illness is stress related Directly linked to heart disease, lung ailments, accidents, cirrhosis of the liver and suicide

Alcohol Abuse Alcohol Cost Calculator: ostcalculator.org/ ostcalculator.org/

Absenteeism Psychological problems account for 61% of absences from work each year, 65-85% of employee terminations and 80-90% of industrial accidents. An estimated 1,000,000 workers are absent on an average of workday because of stress related complaints. (The American Institute of Stress, 2000) Unscheduled absenteeism costs employers as much as $688 per employee per year.

Mental Health More than 54 million Americans have a mental disorder in any given year, although fewer than 8 million seek treatment. (Surgeon General’s Report on Mental Health, 1999) Depression and anxiety disorders – the two most common mental illnesses – each affect 19 million American adults annually (National Institute of Mental Health, 1999) The estimated economic burden of depression was $43.7 billion: $31.3 billion for indirect costs such as decreased productivity and lost work days, and $12.4 billion in direct costs such as medication and physician time (NMHA, 2000)

Mental Health Grief - 30 million people grieve each day in the United States. Employers can't afford to ignore grief. (Source: United Behavioral Health) Up to one-half of all visits to primary care physicians are due to conditions that are caused or exacerbated by mental or emotional problems (Collaborative Family Healthcare Coalition, 1998.) Two out of ten people suffering from clinical depression start out with stress.

Mental Health Calculator Example

Substance Abuse 40% of industrial fatalities and 47% of industrial injuries are linked to alcohol consumption and alcoholism. 36% of all employee thefts were directly related to drug problems of abusing employees. Drug-reliant employees incur 300% higher medical costs and benefits compared with healthy co-workers. (U.S. Chamber of Commerce, Workers at Risk: Drugs and Alcohol on the Job. 1990) Nearly 25% of a drug dependent employee’s salary is lost through increased use of medical benefits. 70% of all current adult illegal drug users are employed. (CSAT, 1999)

Video: Killing the Patient

Workplace Violence Workplace murders claim the lives of 1,000 people each year. Another 2 million people per year are victims of a violent event or threat in the workplace. EAP has three tools to reduce the risk of workplace violence: 1) Confidential and accessible consultation for employees who feel stressed 2) Anger Management Training and 3) assistance for supervisors who are addressing potentially violent situations.

Workplace Violence Studies indicate that workplace violence costs American businesses anywhere from $6.4 billion to $36 billion annually. On the average, it costs the company $53,000 per event in law suits, workers comp claims, and public image problems

Wellness – Fitness is the Key to Prevention!

Wellness – Eating Right

Stories General Motors Corporation EAP saves the company $3,700 for each employee enrolled in the program. (ASIS OP Norton Information Resources Center, Substance Abuse; A Guide to Work Place Issues, November 1990) United Airlines estimated it gets a $16.95 return for every dollar invested in employee assistance. (ASIS OP Norton Information Resources Center, Substance Abuse; A Guide to Work Place Issues) Philadelphia Police Department employees undergoing treatment reduced their number of sick days by an average of 38% and their injured days by 62%.

Thank You! Questions??

Employee Assistance Professionals Association: The Impact of EAP Use on Health Care Costs: p/zarkin.pdf p/zarkin.pdf U.S. Department of Health and Human Services: ance_programs.aspx ance_programs.aspx