Wellness Fundamentals

Julie EvartsEHD

Healthcare Facts

• The US spends more on healthcare than any other country.

• We spend over $1 Trillion dollars on healthcare annually.

• Although we spend more dollars on health care than any other industrialized nation, our citizens are not the world’s healthiest.

Source: Surgeon General’s Report on Physical Activity Health, 1996.

PresenterPresentation NotesThe United States spends over $1 trillion dollars on healthcare annually.Although we spend more dollars on health care than any other industrialized nation, our citizens are not the world’s healthiest.

Life Expectancy vs. Health Care Spending

Per Capita Health Care Spending in International Dollars

Life

Exp

ecta

ncy

3 0

4 0

5 0

6 0

7 0

8 0

9 0

0 50 0

100 0

200 0

300 0

400 0

500 0

150 0

250 0

350 0

450 0

Sierra Leone

United States

Japan

Cub a

Health Care Spending is on the RiseOur nation spends more on health care

than any other country in the world

Chronic diseases account for 75% of the $1.4 trillion we spend on health care

$245 billion an average of $1,066 per person

1980

$1.4 trillion an average of $5,039 per person

2001

SOURCE: Heffler et al., Health Affairs., Health Spending Projections For 2001-2011: The Latest Outlook, March/April 2002.

$2.8 trillion an average of $9,216 per person

2011

PresenterPresentation Notes

Chronic diseases account for 75% of the $1.4 trillion we spend on health care but only 1% of health dollars are spent on public health efforts to improve overall health.

Despite evidence that prevention works, there are many existing opportunities that we have not taken advantage of to prevent chronic disease. These include: the use of early detection practices for cancer, diabetes, and heart disease; school health education programs, supportive environments for physical activity and healthy eating in communities, and established standards for preventive care practices.

For 1980 estimates - see http://www.cms.hhs.gov/statistics/nhe/historical/t1.aspFor 2001 and 2011 estimates, see Centers for Medicare and Medicaid Services, Office of the Actuary; US Department of Commerce, Bureau of Economic Analysis; and US Bureau of the Census

(summary table of 2001 and 2011 presented by Heffler et al., Health Affairs., Health Spending Projections For 2001-2011: The Latest Outlook, March/April 2002.

Notes: About 2011:National health expenditures are projected to reach $2.8 trillion in 2011, growing at a mean annual rate of 7.3 percent during the forecast period 2001- 2011. During this period we expect health spending to grow 2.5 percent per year faster than nominal gross domestic product (GDP), so that by 2011 it will constitute approximately 17 percent of GDP, up from its 2000 level of 13.2 percent.

Preventable Illness

• Of the 2+ million people who die in the US each year, approximately 1 million of these deaths are due in large part to preventable causes.

• The leading causes of death in the US in 2000 were :– Tobacco (435,000)– Poor Diet and Physical Inactivity (400,000)– Alcohol Consumption (100,000)

Source: CDC Media Relations, March 2004

PresenterPresentation Notes*Much of the illness in the US is directly preventable. Examples of Preventable Illness:Childhood illnessDiabetesHeart DiseaseCancer Many MoreLet me divide the room in half….. According to the statistics, this half (point) will live a nice long life and die of natural causes, but this half, according to the statistics, is going to die of something that is preventable. As I read it, that’s a 50/50 chance of dying of something that is preventable. If you told me today that I had a 50/50 chance of winning the lottery, I’d run out and buy some lottery tickets! I’m giving you the tools you need to help improve your own personal odds! Now let’s talk about some of those lifestyle choices and their link to chronic disease.

Increases in Health Insurance Premiums Compared to Other Indicators, 1988-2005

Reprinted by Zywave, Inc. with permission from Employee Benefits News Benefits 2006 Sourcebook. Copyright 2005 by Securities Data Publishing. All Rights Reserved.

Source: KFF/HRET Survey of employer-Sponsored Health Benefits: 1999-2005; KPMG Survey of Employer-Sponsored Health Benefits; 1993, 1996; The Health Insurance Association of America (HIAA): 1988-1990; Bureau of Labor Statistics, Consumer Price Index (U.S City Average of Annual Inflation (April to April), 1988-2005; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April), 1988-2005.

0%

5%

10%

15%

20%

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Health Insurance Premiums Workers Earnings Overall Inflation

*Estimate is statistically different from the previous year shown at p

What Really Drives Costs?

RISK– Not Pricing –DRIVES COST

Health

Risks &

Consum

er Beha

vior

Utiliz

ation

$$

Claims

Costs

Risk Factors for Every 100 Employees

• 25 have Cardiovascular disease• 12 are Asthmatic• 6 are Diabetic• 26 have High Blood Pressure• 30 have High Cholesterol• 63 are Overweight or Obese• 21 Smoke• 31 use Alcohol excessively• 20 don’t wear Seatbelts• 24 don’t Exercise• 44 suffer from Stress

Source: Department of health and Human Services

What is Wellness?

• “An intentional choice of a lifestyle characterized by personal responsibility, moderation, and maximum personal enhancement of physical, mental, emotional and spiritual health.”

What is Worksite Wellness?

• “An organized program in the workplace that is intended to assist employees and their family members in making voluntary behavior changes which reduce their health and injury risks, improve their health consumer skills and enhance their individual productivity and well- being.”

Why Wellness in the Work Place?

• The majority of Americans work.

• People spend most of their waking hours at work.

– The average workweek has grown to almost 50 hours per week.

– More than one-third of Americans are now working 10+ hours a day and 39% are working on the weekends.

Source: Schor, The Overworked American, 1992

PresenterPresentation Notes* The Worksite is an Ideal Setting to Address Health and Well-Being. Why you ask?

Why Wellness in the Work Place? For Employees

• Increased knowledge about the relationship between lifestyle and health

• Increased opportunity to take control of their health and medical treatment

• Improved health and quality of life through reduction in risk factors

• Increased morale via management’s interest in their health and well being

• Increased opportunity for support from co-workers and environment

• Reduced work absences• Reduced medical costs• Reduced presenteeism related productivity loss

Why Wellness in the Work Place? For Employers

• Increased worker morale• Increased worker productivity• Informed and health-care cost-conscious workforce• Recruitment tool• Opportunity for cost savings via:• Reduced sick leave absenteeism• Reduced disability claims• Decreased healthcare utilization• Decreased overall health and benefit costs• Fewer on-the-job accidents• Lower casualty insurance costs

Why Wellness in the Work Place? For the Community

• Contributes to establishing good health as a norm• Provides a model for other local organizations• Improves quality of life of citizenry• Helps control (and possibly reduce) the economic and

social burden on all taxpayers from premature mortality and morbidity

Expectations

• Changing lifestyles and health behavior takes a lot more that a 1 hour lunch and learn or a 12 week aerobic exercise class.

• Long term health behaviors like smoking, exercise, dietary habits, weight maintenance, stress response and safety practices are very difficult to change and even more difficult to maintain over the long haul.

Employee Expectations

• “Benefit Entitlement” attitude

Employer Responsibility

• “Get sick” credit card

Wellness Program success

• Add as another layer of employee benefits

• Strive to tap into an individuals intrinsic motivation

• Employee must feel valued

• Foundation before roof

Keys to a Successful Wellness Program

• Strong senior and mid-level management support

Keys to a Successful Wellness Program

• Create a cohesive “Wellness Team” or “Task Force”

• Formally appoint wellness team members

• Write health promotion responsibilities into job descriptions

Keys to a Successful Wellness Program

• Collect data to drive a results-oriented Wellness Initiative

Keys to a Successful Wellness Program

• Create a “SMART” annual operating plan• S – Specific• M – Measurable• A – Achievable• R – Relevant• T – Time based

Keys to a Successful Wellness Program

• Choose appropriate health promotion interventions

Keys to a Successful Wellness Program

• Create a supportive health promoting environment– Vending machines– Birthday/Holiday celebrations

Keys to a Successful Wellness Program

• Carefully Evaluating outcomes

Your Future… Health?

“We spend our entire lives sacrificing our health to gain money… then when we reach our

retirement years, we sacrifice all our money to try and regain our health.”

Unknown

Wellness FundamentalsHealthcare FactsLife Expectancy vs. Health Care SpendingHealth Care Spending is on the Rise�Preventable IllnessIncreases in Health Insurance Premiums Compared to Other Indicators, 1988-2005�What Really Drives Costs?Risk Factors for Every 100 EmployeesWhat is Wellness?What is Worksite Wellness?Slide Number 11Why Wellness in the Work Place?Why Wellness in the Work Place?�For EmployeesWhy Wellness in the Work Place?�For EmployersWhy Wellness in the Work Place?�For the CommunitySlide Number 16ExpectationsEmployee ExpectationsEmployer ResponsibilityWellness Program successSlide Number 21Keys to a Successful Wellness ProgramKeys to a Successful Wellness ProgramKeys to a Successful Wellness ProgramKeys to a Successful Wellness ProgramKeys to a Successful Wellness ProgramKeys to a Successful Wellness ProgramSlide Number 28Keys to a Successful Wellness ProgramYour Future… Health?