© 2012 Health Fitness Corporation

VS.

Perspectives on Employee Health & Incentives

T h e C o s t s o f E m p l o y e e H e a l t h

We l l n e s s Pr o g r a m I n c e n t i v e s

View employees’ poor health habits as the biggest challenge to maintaining affordable benefit coverage2

2 out of 3 can’t estimate how

much their employer spends on

health benefits6

61%23%

{

$100 $100 $100 $100 $100

E m p l o y e r s E m p l o y e e s

E m p l o y e r s E m p l o y e e s

N e w G u i d a n c e o n I n c e n t i v e s

Many are not aware of the connect ion between thei r health and the health care dol lar, or the posi t ive impact of relat ively smal l behavioral changes

Calculated the monthly spend by employers to be less than $500 per month

{

Agree

Disagree

offer wellness programs365%

provide an incentive based on tobacco-use status

base on achievement of outcomes such as body mass index or cholesterol

To improve employee health

How incentives are used5:

Most don’t want to feelforced to participatein wellness7

agree that employers are right to offer wellness programs in an effort to control health care costs

favor offeringa financialreward to those who meetspecific health goals

oppose charging more for health coverage if theydo not participate in wellness programs

oppose charging more for health coverage if they don’t meet health goals

apply surcharges to employees for not participating in wellness programs

To make outcomes-based incentives fair and effective with improving employee health, recently published guidance9 suggests the following:

Sources:1 The Road Ahead: Shaping Health Care Strategy in a Post-Reform Environment, Towers Watson/National Business Group on Health, 20112 Performance in an Era of Uncertainty, Towers Watson/National Business Group on Health, 20123 Health Care Survey, Aon Hewitt, 20124 Ibid.5 “Large Employers Expect Health Benefits Costs to Increase 7% in 2013, SHRM 6 “The U.S. Health Consumer is Health-Finance Illiterate and Resistant to Linking Wellness to Health Plan Costs,” Health Populi, July 30, 20127 “Perceptions of Health Benefits in a Recovering Economy: A Survey of Employees,” National Business Group on Health, July 26, 20128 Health Care Survey, Aon Hewitt, 20129 “Guidance for a Reasonably Designed, Employer-Sponsored Wellness Program Using Outcomes-based Incentives,” Journal of Occupational and Environmental Medicine, July 2012

44%44%

29%29%

22%22%

65%

77%77%

80%80%

68%68%

71%71%

Avoid using a reward or penalty that is so large it discourages participation.

Use the 4 most common targets of weight, cholesterol, blood pressure and tobacco use.

Reward for progress toward the standard targets, instead of just rewarding those who meet the goal.

Help employees integrate healthy behaviors by offering personalized support, such as a health coach, so they are more likely to internalize and sustain healthy behavior changes over time.

For employees with a medical condition that makes it difficult to achieve the health standard, defer to the employee’s health care provider for a reasonable alternative standard or a waiver.

35%

To read more about the JOEM guidance on outcomes-based

incentives, visit www.the-hero.org.

GUEST RECEIPT

Guest Check

Total

453272NO. PERSONS DATE CHECK NO. AMOUNT

453272TABLE NO. NO. PERSONS CHECK NO. SERVER NO.

$11,176

Total bill for health care for each employee (employees pick up the difference)1

$8500amount spent per employee on health care coverage in 2011

2011 2012

Used incentives withcondition management

Used incentives withwellness programs