Health Management

1. Health Management A Mandatory Business Practice Presented by Erick Hathorn, Health Management Practice Leader

2. Today’s Agenda Why Wellness Today’s Reality Healthcare is Changing Gallagher Health Management

4. Every 100 Employees • 68 are overweight or obese • 21 smoke • 31 use alcohol excessively • 20 don’t wear seatbelts • 24 don’t exercise • 25 have cardiovascular disease • 12 are asthmatic • 10 are diabetic • 26 have high blood pressure • 30 have high cholesterol • 4 suffer from stress

5. The Facts • Heart Disease Costs Employers $18,618 PEPY • $5,617 Healthcare Plan • $6,052 Sick Leave • $4,845 STD • $981 Workers Comp. • $945 Unpaid Leave • $178 LTD • Smoking Costs Employers $5,318 PEPY • $2,295 Excess Medical Expense • $2,175 Smoke breaks • $465 Absenteeism • $206 Death • $176 Workers Comp. • Diabetes Costs Employers $11,744 PEPY More

6. Cost Reality

7. Obesity is an Epidemic OUCH! • 68% of the American population is either overweight or obese • Obese Employees are 4x more likely to be absent from work • Obese Employees pay • 77% more in RX • 36% more at Physicians • 45% more for hospital stays

8. Obesity Trends* Among U.S. Adults1990, 1999, 2009 1999 1990 2009 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%

9. High Claims & Body Weight

10. High Claims & Inactivity

11. Today’s Reality

12. Healthcare is the second largest business expense to most organizations87% of corporate leaders listed rising healthcare costs as their #1 concern

13. Industry Misconceptions Wellness – Wellness is not screening your employees, its helping them make better health decisions Engagement – Engagement is the value proposition between the company and employee Return On Investment – There is no such thing as a like company. There are over 50 different variable to consider. Budget – Wellness programs are expensive

14. Why Healthcare Costs Continue To Rise

15. How the Industry has Managed Rising Healthcare Costs

16. Healthcare is becoming a question of Sustainability 10% Trend

17. The Total Impact of Health • Medical Health Costs • Medical Care • Pharmacy 25% of Cost $3,376 PEPY Productivity Costs Presenteeism Absenteeism LTD STD Overtime Turnover Temp Staffing Administrative Replacement Retention $10,128 PEPY 75% of Cost

18. Keep the Healthy, Healthy Chronic Disease Claims Continuum 20% 50% of claims cost --- 5% • Contributing Factors: • Aging Population • Obesity • Inactivity • Stress • Smoking Chronic Condition 75%

19. Healthcare is Changing

20. The Evolution of Health Management 1930’s Risk Management 1970’s Disease Management 1990’s Wellness 2010’s Enterprise Health Management

21. A Shift In Thinking From Disease & Cost, to Health & Investment Aligning Your Company Vision With That of Your Employees

22. Zero Trend Healthcare Breaking Down Barriers & Driving Engagement Wellness is not finding out what’s wrong; its fixing what’s wrong.

23. Incentives Lead to Engagement • Contribution Premium Differential (Incentive/Disincentive) • Eligibility • Participation on Insurance • Participation on Richer Plan • Plan Design • Diabetes Plan Design • Waiver of Deductible/Coinsurance • Rewards—Gift Cards or Prizes

24. Healthcare Reform & Legislation

25. Keys to Success • Communication Strategy • The Assessment – Strive to Maximize Participation • The Fix – Four key behavioral change components • Weight Management • Physical Activity • Stress Management • Tobacco • Coaching – Clinical & Behavioral • Integration – Wellness and Disease Management

26. Gallagher Health Management

27. Wellness starts with Communication Exclusive Prepared By

28. The Science of Engagement

29. Readiness For Change Evaluation Inventory

30. Building A Case For Wellness

31. Market Scans Master Profile Carrier Drill Down

32. Multi-Year Plan

33. Thank You