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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 ROITim O’Neil, Manager, Employee Health & Financial WellnessAction to Quit! Tobacco Cessation Summit October 19, 2011
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
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
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
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
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
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.
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)
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
How the Meredith Tobacco Cessation program works: - Initial Response fromEmployees 10
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
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%
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.”
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
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
Annual Employee Contributions • Since 2008 • High Deductible Plan: 0% • Healthy 500 Plan: 2% increase • Healthy 250 Plan: 4% increase • 2011 • Non-Wellness Participants: 20%
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
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
Contact Information Tim O’Neil, Manager Employee Health and Financial Wellness Office: 515.284.2957 Tim.o’neil@meredith.com Wellness@Meredith.com 28