Proven Strategies for Implementing a Worksite Wellness Program

1. Find “Weldo” Proven Strategies for Implementing a Worksite Wellness Program Rod R. Hart RN, COHN Healthy Acitive Oregon Bend, OR 4-28-06

2. Agenda • Literature review, research and best practices • Relationship between health and productivity • Health risks and readiness for change • Ensuring results, incentives and ROI

3. Please Stand Up How many people here today feel their leadership appreciates and believes in their work?

4. How many people standing feel their leadership live it to lead it? “Priceless” - Congratulations!

5. Corporate Values & Strategy Wellness Mission & Programs Wellness Gap Analysis

6. Understanding the Costs Adverse Bottom Line Impact *DIRECT - 26% Medical Costs & Workers’ Comp Health Care Costs Medical Care Hospitalization Pharmacy Diagnostic Testing Behavioral Health Physical Therapy Medical Care Salary Continuation STD/LTD Lost Productivity Absenteeism Presenteeism **INDIRECT – 74% Employee and Customer Dissatisfaction Turnover Temporary Staffing Poor Quality Replacement Workers Training Interim Employee Administrative re-work *Medical 22% Disability 4% / **Productivity Loss 74% Source: Integrated Benefits Institute, 2002

7. The Reality for Employers and Employees • Health insurance premiums rose by 11.2 percent in 2004, the fourth consecutive year of double-digit increases. - Henry J. Kaiser Family Foundation • Health insurance premiums will rise to an average of more than $14,500 for family coverage in 2006. - National Coalition on Health Care • Premiums for employee-sponsored health insurance have been rising five times faster on average than workers' earnings since 2000. - Health Research and Educational Trust • Employee spending for health insurance coverage has increased 126 percent between 2000 and 2004.- Hewitt Associates LLC • Since 2001, the employees' share of health insurance costs has soared 63 percent for single coverage and 58 percent for family coverage.- Hewitt Associates LLC

8. The New Dialogue SHIFTING CULTURAL NORMS

9. 1.) Support & commitment from supervisors & management • 2.) Workplace-friendly policies supporting program goals & objectives • 3.) Workplace culture which values wellness • 4.) Program marketing efforts that reach, touch, inform & influence • 5.) Programs designed & owned by real people WELCOA Small Business Sourcebook (1998) Fundamental Success Factors

10. Program ParticipationA critical ingredient and key success metric… • Engage the entire population - Champions, Supporters, Detractors • Conduct regular status checks and quarterly reviews • Promote and nurture a culture that values health & well-being • Position the program powerfully – employee testimonies & brand identity • Target communications - reach out and touch them • Menu of options – programming mix that supports multiple levels of behavior change • Use incentives wisely • Establish specific participation goals / objectives and manage them • Have a solid participation metrics story

11. Managing Wellness Traffic Patterns • Red Risk Group: • Multiple risk factors, high healthcare expenses, moderate absenteeism rate and moderate performance • Yellow Risk Group: • No overt risk factors, low healthcare expenses, but high absenteeism rate, and reduced performance • Green Risk Group: • A chronic health condition, moderate healthcare costs, low absenteeism rate and superior performance

12. Such a Maze - Where to Begin… • Galvanize argument that investing in employee health & wellbeing is a core requirement • Analyze data to determine/clarify priorities & develop a strategic plan • Establish an executive business case • Program Selection/Development • Program Implementation/Integration • Identify other business unit stakeholders

13. Health and Productivity Hot-Buttons • Behaviors (Lifestyle and Habits) • Smoking, Substance Abuse, Obesity, Physical Inactivity • Health Conditions • Acute and Chronic Conditions • Work Environment • Safety, Ergonomics, Stress • Employer Philosophy • Organizational Culture, Health & Benefits Strategies • Employer Programs and Services • Disability Management, Health Promotion • Benefits Options, Program Integration

14. Wellness StrategyConventional View vs. Strategic Approach

15. Health Improvement Programs Smoking Cessation Weight Management Food Services - Discount Healthy Choices Vending Overall Seasonal Wellness Campaigns Pedometer Programs Physical Activity Challenges Employee Tools & Resources Health Care Consumerism Health Care Information Safety Programming Injury Prevention Ergonomics Fitness Options Onsite Fitness Centers Fitness Partners Self-Directed Programs CreatingMenu - Programs, Services & Incentives

16. Where to Look for Results? • What to Review? • Claims Data: Workers’ Comp, Health Status • Condition Prevalence and Cost • Condition Management Services • Emergency & Urgent Care Utilization • Pharmaceutical Costs and Utilization • Health-Related Benefits Offerings, Plan Design and Utilization • Worksite Health Promotion Programs • Work/Life Balance Programs • Worker’s Comp & Safety Data

17. Define Your Value Proposition • Cost Savings and Increased Profitability • Decreased Health Care Costs • Reduced Lost Work Time • Enhanced Organizational Productivity • Competitive Cost Advantage in the Marketplace • Improved Employee Satisfaction • Improved Health and Wellness • Improved Morale • Enhanced Engagement • Improved Recruitment and Retention

18. When it comes to Wellness - - What’s on Your Plate? • Analyzing and identifying the organization’s risk exposure... • Ensures an innovative and cost-effective wellness programming strategy • Promotes an efficient, effective and affordable array of collateral servicesand support aligned across the organization • The Bottom Line • Fostering a healthier, more fit lifestyle for employees, extended family members and retirees results in… • Positively influencing your clients, customers & community

19. Handout 1:Wellness Best Practice, ROI Resources • R. Goetzel – S. Serxner – L. Chapman – S. Sullivan • Integrated Benefits Institute - IBI • Institute for Health and Productivity Management • C. Everett Koop National Health Project • Health Enhancement Research Organization • WELCOA - Wellness Councils of America • Robert Wood Johnson Foundation • National Business Coalition on Health • Washington Business Group on Health

20. Employee Assistance Programs Work/Life Balance Financial Planning Elder Care Dependent Care Stress Management Health-Related Incentive Programs Nurse Line Integrated Disability Management Work-Related Non-Occupational Case Management Absence Management Return-to-Work Programs Handout 2:More Wellness Intervention Considerations: • Health Risk Profile • HRA • Wellness • Ergonomics • Condition Management Worksite Healthcare On-Site Rx Health Coaching Quality Healthcare Initiatives • Provider Profiling • Provider Incentives • Claims Review Medical Claims Data Analysis Pharmacy Claims Analysis

21. Percent higher absenteeism than healthy employees Reference: Serxner, S., et al., (2001). The impact of behavioural health risks on worker absenteeism. JOEM, 43(4), 347-354 Health Status & Functional Capacity

22. Health Status & Functional Capacity • Reducing one health risk can… • Reduce absenteeism by 2% • Improve productivity by 9% Reference: Pelletier B, Boles M, Lynch W. (2004). Change in health risks and work productivity over time. J Occup Environ Med.

23. Something to Consider The total Functional Capacity of your company is the sum of all the capacities of your individual employees Lift the functional capacity of your people and you lift the competitive advantage of your entire company