Global Rewards Your Benefits – Total Health. 2 | MDT Confidential Medtronic, Inc. Our Business,...

Global RewardsYour Benefits – Total Health

2 | MDT Confidential

Medtronic, Inc.Our Business, Our People, Our Mission

• World’s leading medical technology company, providing life-long solutions for people with chronic disease

• Over $14 billion in annual sales

• 38,000 employees worldwide – 26,000 U.S.– Average age: 41– Average length of service: 7 years

• Established in 1949 by Earl Bakken, inventor of first external pacemaker

• Patient focused and driven by the Mission


To contribute to human welfare by application of biomedical engineering in the research,

design, manufacture and sale of instruments or appliances that

alleviate pain, restore health and extend life.

A Mission that Supports a Culture of Health


What we do…

5 | MDT ConfidentialTotal Well-Being

A Great Place to Work


Global Rewards Programs

Total Rewards: Compensation Financial Benefits Stock ownership

Medtronic offers a variety of resources for the growth of each employee’s mind, body, heart, and spirit.

These resources allow employees to be fully present both at work and in their personal lives.

Total Health: Wellness / HealthCare EAP / Work Life Resources


What is Total Health?

A comprehensive, integrated wellness approach that includes a health focused set of tools and resources designed to:

• Help you assess your health through a confidential questionnaire about your health and lifestyle

• Improve and maintain your and your family’s overall health and well-being with a personalized health website and one-on-one health coaching

• Help you become a better health consumer by taking advantage of the resources that are most relevant to you as an individual

Open to all employees and covered spouses


Principles Guiding Total HealthFACT: over 50% of health care costs are driven by lifestyle behaviors

• Invest in health rather than cost of treatment– Prevention, Early detection

• Increase awareness for employees and dependents– Communication of tools, resources and programs

• Improve health through behavior change– Health questionnaire, health coaching, financial incentives

• Reduce inappropriate use of health care

• Increase productivity

• Limit health care costs secondary to a healthy population


Assessment & Screening

Employee/Spouse

Company-sponsoredPrevention

HealthDecision Support

Tools

LifestyleBehaviorChange

Disease Management

and Care Support

HealthCoach

Total Health Model

Goal: To keep the healthy, healthy, and improve the health of employees and family


Total Health Components That Support Wellness

• 100% Coverage Preventive Care Services• Healthy Pregnancy Programs• Nurse Lines• Chronic Care Management• Disease Management• Smoking Cessation Programs• Provider Searches – quality, cost, location• Health Club Discounts and Frequent Fitness Reimbursement• Employee Assistance Programs


Total Health Components That Support Wellness

• Free Flu Vaccinations• Wellness Screenings on-site• “Total Health” website• Health Risk Questionnaire • Lifestyle Health Coaching• Phone based & on-site classes• Healthy Eating Options• On-site Fitness Centers• Smoke Free Environments• Live Healthy Medtronic Program


• WebMD Health Coaches serve as personal navigators for the Total Health program – directing individuals to the right resources and providing guidance for positive change

• Eligible participants receive a Welcome Kit mailed to their home address and are contacted proactively by a personal Health Coach who invites them to participate in the program– Follow-up calls set goals and monitor progress– Coaches can refer people to relevant resources

such as smoking cessation or lifestyle improvement programs

• All Health Coaches have degrees in a health related field such as nutrition, exercise physiology, education or health promotion, and experience working with individuals to improve health and well-being

Health Coach

Health Information Decision Counseling Lifestyle Coaching Health Care Navigation

Health Coach


Total Health Roll-out and Incentives

• New unified vendor partners – Vendor Summits

• Initial roll-out: September 2006 – Chance to win prizes, achieved 50% HRQ completion

– Address privacy concerns

• Healthy Incentives introduced March 2007 – Motivate employees to take part in health improvement programs

– $100 contribution in Healthy Incentives Account

• 2008: Premium differential for completion of HRQ – $50 less per month for health coverage

– New HRQ completed by year end - achieved 88% HRQ completion

– Common password, improved ease of access to website

• 2009 and 2010: Complete HRQ 10/1 – 12/31/ to save $$$– $50 per month cost differential / Chance to win prizes

• 2010 Puerto Rico roll-out


Total Health – Building a Culture of Health

• Visible Senior Management Support– Brand Sponsor of the Medtronic Twin Cities Marathon – Kids Marathon

– Medtronic Foundation that supports health in the community

– American Heart Association Heart Walk

– Sr. Leader “Champions” for Wellness programs

• On-site Wellness Centers, Wellness Screenings, Flu Vaccinations, Massage

• “Do” Campaign

• Open staircases, attractive stairwells, windows

• Healthy cafeteria and vending options

• Walking and bike paths

• On-site clinics

• Mother’s Rooms

• Smoke-Free Environments


Evolution of Medtronic’s

Total Health Culture

2001 2007Prior to 2001

Introduced Integrated Total Health

Early adopter of CDHP with HRA

40-years of wellness and fitness programs. Traditional medical plan options

“Many programs available to me”

Employee Engagement

Employer Actions

“I am in charge”“Taking action will

improve my health and reduce costs over

time”

2010

“I receive incentives for participating”“My participation strengthens our

business”

•Alliance for Healthier MN•PR Wellness Programs•Global Pilot Rollout

“I can do something about my health”“Fully engaged another culture”

“Wellness is a global issue”


Wellness Impact ScorecardHealthy Population

Healthy Practices

• 95% Non-smokers• 72% Physically Active• 50% Exercise 30+ min. 5 or more times per week• 79% Healthy Cholesterol• 80% Low Risk• HRQ Average Score 84 versus Benchmark 78• Over 100% increase in weekly fruit sales• New Turkey Burger = 21% decrease in Hamburger sales• Wellness Entrée sales increased 24% in 2009


Total HealthEngaging the Population

Participation

• 88% HRQ Completion 2007, 2008, 2009• 10,134 Wellness Screening participants 2009• 8,500 Flu Vaccinations 2009• Over 10,000 Engaged with a Health Coach to date• 3,100 Live Healthy Medtronic program 2010• 18,000 Earned $100 Healthy Incentive contribution 2009• Over 2,000 earned Healthy Incentive contribution for

January 2010


Wellness Impact ScorecardOutcomes

Risk reduction

Top risks: diet, weight, stress, blood pressure, activity• 58% Eliminated or Reduced at Least One Health Risk• 15% Reduction in Smoking, 95% Non-smokers• 72% Reduction in At Risk Cholesterol 2007 to 2009• 50% Reduction in At Risk Glucose 2007 to 2009• 20% Increase in Low Risk population (80%)• 2% Decrease in High Risk (3%)• 8,200 Pounds Lost from Live Healthy Medtronic 2010


Bloodwork Summary

CholesterolGlucose


Wellness Impact ScorecardOutcomes – Over $4 Million Annual Savings

Utilization and Cost Reduction

• $3M cumulative cost avoidance from reduced risks 2007 to 2009• $1.5M annual savings from screening costs vs. doctor’s office• $400K cost avoidance from flu vaccination program• 20% increase in preventive screenings• 30% decrease in medical and RX claims from population in health

coaching• $600K cost avoidance due to prevented preterm births• 54% decrease in ER visits due to diabetic conditions• 72% increase in diabetic preventive visits• 6.5-5.4% decrease in health care cost trend• ROI 2:1


• "I liked the way the coach made more suggestions to help me try to achieve my goals."

• "I think the coach was very positive, very encouraging, and very knowledgeable. I'm glad that we have this program and that I was able to use it!”

• “I appreciate the coaches taking time to call. Talking to them gives me courage to continue.”

• “My coach is exceptional.”• “The program is great! She showed me a lot of

tools accessible on my website that I didn't even know were there.”

What participants are sayingabout health coaching


I was diagnosed with Type 2 Diabetes this fall. I found out my glucose level was elevated from the Wellness Screening. This was really a wake-up call for me, and after working with a nurse educator I knew I needed to eat better and exercise more. I had already started to make some changes, but when I saw the message for Live Healthy America I was really excited. I knew that joining a team with my co-workers and tracking weight loss and exercise minutes would really help me stay motivated. So far I am happy to report that I have lost 7 pounds since the beginning of the Live Healthy America program, and 28 pounds since the diabetes diagnoses. I need the most help on the exercise part, and I’m hoping the pedometer you’re offering will build some awareness for me. Thanks for all you do to keep Medtronic employees on the right track!

A real-life story

I was diagnosed with Type 2 Diabetes this fall. I found out my glucose level was elevated from the Wellness Screening. This was really a wake-up call for me.


Key Employee Concerns to Address

Concern Medtronic Response

Privacy • Address personal privacy in all communications• Aggregate data is used to direct Total Health efforts

Lack of understanding of the business case – “why is this so important?”

• Key messages regarding goals for employee health and opportunity for cost savings

• Share success stories of employees with improved health, cost savings, etc.

Potential of a positive program becoming negative

• Share business case for HRQ premium differential• Emphasize Total Health tools and programs beyond the HRQ

Access • Access available from work or home – 24/7• Provide laptops at Wellness Screenings• Support local HR in providing access and instructions for employees

with kiosk access• Single Sign-On


Lessons Learned

• Create a brand for your program• Strong communication strategy

– Address data privacy, why this is important to the company, use many communication vehicles

• Stage your roll-out, don’t try to do it all at once– Gain employee “buy-in” to the program– Share success stories

• Leverage vendor’s knowledge and best practices• Address program access issues

– Customer Service phone number– Common password– Computer kiosks

• Expect to hear from the “vocal minority”• Provide health coaches with company and program information• Keep it simple• Changing behavior is a long process – helped by one-on-one interaction,

multiple touch points, the right incentives, and program enhancements that keep it “new” and interesting


Health Improvement through Engagement• Continuous improvement of program through ongoing tight

integration with WebMD Health Coaches

• Personalize wellness initiatives by location/business

• Increase targeted messaging

Healthy Incentive Program – new 2010• Earn up to $150 annually

• Focus on Prevention / Stay Healthy / Improve Health

Total Health Expansion• Puerto Rico rolled out early 2010, incentive program planned

for Q2 and premium differential planned for 2011

• Europe roll-out Q4 2010

• Spouses – discussion of premium differential 2011

Health Alerts / Claims / PHR• Communication campaign and roll-out 2011

Virtual Clinic Pilot

Looking Ahead …2011


Thank You

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Global Rewards Your Benefits – Total Health. 2 | MDT Confidential Medtronic, Inc. Our Business,...

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