Building a Sustainable WELLNESS Strategy 2015

What is Wellness?

Wellness is an active process of becoming aware of and making choices towards a more successful existence

-National Wellness Institute

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Why Wellness?

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Why Wellness?

• “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 - Poor eating habits - Lack of physical activity - Excessive alcohol consumption

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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 cost5

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

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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

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Case Study: The Reynolds Company

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Provider Humana Principal Wellness Company (PWC) United Healthcare (UHC) Viverae

Year 2007 2008 2009 2010 2011 2013 2014

Population Insured Employees All Employees Insured Employees All Employees

Eligible 279 349 349 263 256 380 417

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

Participation 23% 64% 47% 45% 58% 42% 36%

Our Journey…

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 suffers9

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

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1. 2013-2014 Viverae cohort data: 115 participants2. 2012-2014 United Healthcare claims: Utilization by Diagnosis

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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.

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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, MSHigginbotham

Wellness & Health Risk Management Practice Leader

Kim Wilborn-Haygood, PHRThe Reynolds Company

Director of Human Resources