Healthy Employees are Important to the Health of Your Business

Health and Wellness in a Time

of Healthcare Reform =
Wellness Defined
A process of being aware of
and actively working
toward better health.

Awareness
If people are going to get healthy,
then they need to have a precise
understanding of their current
health status.

Action
“Act as if what you do makes a difference.
It does.”
Healthy employees are more
productive and have
lower healthcare costs.

That’s important because

healthy employees can
mean a “healthy” bottom
line for your business.
 Question 1
Why Wellness Now?
Obesity Trends Among U.S. Adults
BRFSS

1990 1999

2010

(*BMI 30, or about 30 lbs.

overweight for 5’4” person)

No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%

 Iceberg Phenomenon
Visible Cost

Direct Medical Costs

Medical
Pharmaceutical

Indirect Costs
Presenteeism
Short-term Disability
Long-term Disability
Absenteeism
Workers Compensation

Non-Visible Cost
Pay me now, or pay me later

$85 OR $85,000
Question 2
Why Wellness
at the Worksite?
 Reason #1-
Household
activities
1.1 Eating / Drinking
5% 1.1 Other
5% 1.5
Caring for others 6%
1.3
5%
Working
8.7
36%
Sleeping
7.7
32%

Leisure and
Sports
2.6
11%

Source: Bureau of Labor Statistics

 Average Hours per Work
Week Spent at Work

 With the majority of Americans spending

more of their waking hours at work, what
better place to start than with worksite
wellness.

The typical U.S. adult over the age of 18 has

seven (7) chronic health conditions.
Reason # 2
Healthy employees are more
productive and have lower
healthcare costs. That’s
important because healthy
employees can mean a “healthy”
bottom line for your business.
Portion of Healthcare Dollars
Spending on Wellness
<10% 90+%

Wellness
 Total Value of Health
High Indirect Costs

Direct

Indirect
 2010 - Most Common Ways
Employers Manage Healthcare Trends

70%
58% 60%
56%
60% 51%
50%
40%
30%
20%
10%
0%
Increase costs Change plan Utilize wellness Employee
to employees designs programs education

Source: ERC Healthcare and Wellness Practices Survey

 2010 Wellness Trends
80%
68%
70%
59% 57%
60%

50%

40%

30% 24%
20%
9%
10%

0%
Average of Charge Plan to Have Have Unsure if
$14/month tobacco implement wellness incentives wellness
users some activities in in place reduces
wellness place costs
activities

Source: ERC Healthcare and Wellness Practices Survey

 Step One:
Be a Champion of Health & Wellness

Inform
Your Management

Define
Management’s Role

Train
Management
 Step Two:
Change Your Culture – Make it Healthy

Assess Your Culture

Healthy Workplace Tour & Culture Assessment
 Activity level
 Nutrition habits
 Campus layout

Health Risk Assessment

 Personal Wellness Profile
 Health Screenings
 Healthy You! visit
 Change Your Culture
Be Tobacco-free

Program Services:
3 fully-covered physician visits for counseling
Prescribed nicotine replacement therapy / medication
BCBSMS Quitline
90-day coverage
 Blue Cross & Blue Shield of
Mississippi “be smoke-free” Program
Program Results:
 Blue Cross & Blue Shield of
Mississippi “be smoke-free” Program
Program Results:
 Change Your Culture
Assess Your Employees

HRA Program Components:

 Lifestyle questionnaire
 Annual health screenings
 50% participation

 Understand employees’ health

needs & interests
 Personalized Health Report
 Executive Report
Blue Cross & Blue Shield of Mississippi
Employee Results 2006-2010
Blue Cross & Blue Shield of Mississippi
Health & Wellness Program Success

100%

99%
99%

99%
97%

99%

100%
80%
84%
75%

60%

40%

20%

0%
2003 2004 2005 2006 2007 2008 2009 2010
 Change Your Culture
Inform and Educate Your Employees

Employees have a direct impact on your health plan

 Use benefits wisely
 Health and lifestyle choices impact plan costs
 Access to Nurse Advice Line
 Access to Wellness Center Discount Program
 Annual Healthy You! wellness exam
 Access to tobacco-cessation
 Monthly health & wellness information
Step Three
Promote Healthy You!
Healthy You! Wellness
Benefit

Set a goal of 100% of

employees get their Healthy
You! visit
 Healthy You! Program

Focused Risk Factors

 Cholesterol
Know
 Glucose
Your Numbers
 Blood pressure
 Weight/BMI
Manage
 Tobacco use Your Risks
Blue Cross & Blue Shield of Mississippi
Healthy You! Utilization
(covered employees)
If employees know their numbers,
they can manage their risks
Tangible Results:
Employee Health Impacts the
Health of Your Business

Our Per Member Per Year

(PMPY) costs are 14.2%
less for employees in our
Wellness Incentive
Program.
Employee Health Impacts the
Health of Your Business
Tangible results: Time away from work
 Step Four
 Quarterly activities
 Management in-service
 High participation
 Timely feedback
Healthy Workplace Activities
 “be smoke-free” Program
 Healthy You! promotion
 Eat Healthy Challenge
 be healthy! Challenge
 LGWM worksite challenge
 Be stress-free activity
 Step Five:
Provide Incentives for
Healthy Behavior
Carefully plan your incentives for
long-term behavior change

Time at work to participate in activities

Extra day off for the Healthy You! visit
Monetary incentives
Prize drawings
Provide Incentives for
Healthy Behavior
 Participation during work
 Activity options
 Achievement recognition
 Competition
 Financial rewards
 Benefit differentials
 Return on Wellness

 Lower healthcare costs

 Fewer employee sick days
 Reduction in workers’ comp costs
 Lower disability management costs
 Improved morale
 Reduced turnover
 Lives saved!
 Return on Wellness

$7.00 $5.93
$6.00
$5.00
$4.00
$3.00
$2.00 $1.00
$1.00
$-
Wellness investment ROI per dollar

Source: Employee and Executive Wellness Solutions

 Indirect Return on Wellness
20.0%
12.5%
10.0%

0.0%

-10.0%

-20.0%

-30.0% -26.0%
-28.0% -30.0%
-40.0%
Reduced sick Reduced Reduced Increased
leave healthcare costs Workers' Comp employee
and Disability productivity
claims

Source: Employee and Executive Wellness Solutions

 Healthy Workplace Timeline
Month 3
Month 1 Month 5
Memo from Champion to
- Commitment letter Worksite Wellness
employees about Healthy
- Healthy Workplace Tour Activities begin
Workplace

Month 2
In-service with
Management/Wellness
Committee & Champion