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Meredith’s Tobacco Cessation Initiative – Measuring ROI Tim O’Neil, Manager, Employee Health & Financial Wellness Ac

Meredith’s Tobacco Cessation Initiative – Measuring ROI Tim O’Neil, Manager, Employee Health & Financial Wellness Action to Quit! Tobacco Cessation Summit October 19, 2011. Meredith Corporation Overview. 3,000 benefits-eligible employees Operates in 22 different states

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Meredith’s Tobacco Cessation Initiative – Measuring ROI Tim O’Neil, Manager, Employee Health & Financial Wellness Ac

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  1. Meredith’s Tobacco Cessation Initiative – Measuring ROITim O’Neil, Manager, Employee Health & Financial WellnessAction to Quit! Tobacco Cessation Summit October 19, 2011

  2. Meredith Corporation Overview • 3,000 benefits-eligible employees • Operates in 22 different states • Self-funded medical plan • Spends approximately $23 million annually on health costs

  3. About Meredith National Media Local Media Marketing Services • Leading business-to-business marketer • Experts in digital, social, mobile and database • Major clients include Kraft, Nestlè, Chrysler, Lowe’s • 75 million audience • 23 million web visitors • Growing licensing business • 12 TV stations reaching 10% of U.S. households • Strong affiliate mix • Top 25 markets of Atlanta, Phoenix, Portland

  4. Setting the Vision • Goal: improve health of employees • Win-Win: • Employees feel better and have a better qualify of life • Company benefits from happier, healthier, more productive employees with lower healthcare costs • High priority for leadership • Establishing a wellness legacy 4

  5. Organizational Alignment • Policy change • Tobacco-free workplace – January 1, 2008 • Enhanced health club subsidy – January 1, 2009 • Bicycle Commuter Act – July 1, 2009 • Wellness Points & Well Bucks – January 1, 2010 • Value-Based Benefit Design (Future initiative) • Linking on-site medical center to data • Eliminating duplication • Integrating data

  6. Cost Shifting & Plan Design Changes = Unsustainable Long-Term Solution In 2007 Meredith made the following medical plan design changes: • Switched medical carriers • Added a high-deductible plan option • Quit covering certain elective procedures

  7. Did You Know? Meredith tobacco users averaged $3,900 in health plan costs and 14 doctor visits in 2010. Meredith non-tobacco users averaged $1,300 in health plan costs and 9 doctor visits in 2010.

  8. Metabolic Syndrome and Medical Costs Metabolic Syndrome Risk Factors: HDL Cholesterol, Blood Pressure, Triglycerides, Glucose, Waist Circumference • 75% of wellness participants have less than three risks • $1,713 average incurred plan charges in 2010 • 25% of wellness participants have more than three risks • $2,710 average incurred plan charges in 2010 • $500,000 annual plan savings if we move them to <3 risk group • Non-participants • $2,921 average incurred plan charges in 2010 (70% higher than <3 risk group; 8% higher than 3+ risk group)

  9. Wellness Points Program • Increased $300 premiums discount program to $500 • 1,000 points by October 1 = $500 discount • <1,000 points = no discount • Live Healthy Meredith (January – March) 200 points • Tobacco Cessation (Ongoing) 350 points • Financial Wellness Check up (April) 200 points • Nutrition Education Initiative (May) 100 points • Medical Self-Care/Consumerism Initiative (June) 100 points • Wellness Screening and HRA (August – September) 300 points • Total Points Possible: 1,250 points • 93% of covered employees earned 1,000+ points in 2011 • $800 incentive for non-insured employees

  10. How the Meredith Tobacco Cessation program works: - Initial Response fromEmployees 10

  11. Wellness Coaching Portal

  12. Wellness Coaching Portal

  13. Wellness Coaching Portal

  14. Wellness Points 14

  15. Wellness Points 15

  16. Wellness Points 16

  17. Wellness Points Admin 17

  18. Specialized Well-Bucks Campaigns 18

  19. Meredith Wellness on the go 19

  20. Tobacco Cessation Outcomes • Companywide Tobacco Use • 2006: 10.7% • 2007: 9.0% • 2008: 8.3% • 2009: 7.5% • 2010: 3.4% • Cessation Courses • 48 employees participated in tobacco cessation courses in 2010 • 43 participants completed the 8-week program (90%) • 33 successfully quit tobacco (80%) • $2,600 direct medical cost savings per person per year • $86,000 annual medical savings, $12,000 annual cost of cessation program • ROI of $7.35:$1

  21. Tobacco Use by Location • Tobacco use by Location Location20072010 • Saginaw 10.8% 7.5% • Fairway 19.0% 6.8% • Beaverton 4.0% 4.9% • Chicago 3.7% 4.3% • Greenville 26.7% 3.6% • Henderson 7.1% 3.5% • Atlanta 8.5% 3.0% • Des Moines: 10.9% 2.9% • New York 13.3% 2.4% • Nashville 8.2% 1.4% • Phoenix 12.1% 1.0% • Rocky Hill 10.5% 0.8% Overall 10.7% 3.4%

  22. Participant Feedback • 95% of Meredith participants would recommend the program to others. • Comments included: • “While I marked ‘yes’ that I’m still using tobacco, I want to note that I have cut back considerably and will continue to do so. Amy is extremely motivating and passionate about what she does. She was so very helpful.” • “Awesome program. I look forward to speaking with my instructor and letting her know my progress.” • “Thank you for having this. Three of my friends quit at the same time.” • “Amy is instinctive, supportive and just an overall wonderful coach. She wanted to make sure all of my questions were answered and was always supportive of my thinking and progress.” • “It helped to speak with someone on a weekly basis, because I was holding myself accountable to someone.” • “The whole program was great. It really made me think.”

  23. Cost Shifting & Plan Design Changes = Unsustainable Long-Term Solution In 2007 Meredith made the following medical plan design changes: • Switched medical carriers • Added a high-deductible plan option • Quit covering certain elective procedures

  24. Claims Analysis • The Cost of Doing Nothing = $10 million since 2006. • $2.5 million has been spent on the wellness program since 2006. • $4.00:1 ROI

  25. Annual Employee Contributions • Since 2008 • High Deductible Plan: 0% • Healthy 500 Plan: 2% increase • Healthy 250 Plan: 4% increase • 2011 • Non-Wellness Participants: 20%

  26. National Recognition and Awards • WELCOA Gold-Level Well Workplace (2008) • United HealthCare “Well Deserved” Award (2008, 2010) • AHA Gold-Level Fit Friendly Company (2008) • AHA Platinum-Level Fit Friendly Company (2009, 2010) • Partnership to Fight Chronic Disease “Promising Practices” in Worksite Wellness Award (2009) • League of American Bicyclists Silver-Level “Bike Friendly Business” Award (2009) • New York Post , Fortune, Forbes Magazine, HR Magazine and several Special Interest Publications

  27. Keys Takeaways • Many tobacco users want to quit • Give them a friendly nudge • Provide a wealth of resources and support • Understand it takes (on average) seven attempts to quit • Build tobacco cessation into your policies, incentives and plan design • Measure Results and Celebrate Success

  28. Contact Information Tim O’Neil, Manager Employee Health and Financial Wellness Office: 515.284.2957 Tim.o’neil@meredith.com Wellness@Meredith.com 28

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