Best Practices in Improving Financial and Physical Well-Being

1. Best Practices in Improving Financial and Physical Well-Being Moderator: Susan Windham, CEO, The EDSA Group, Inc. Best Practices in Improving Financial and Physical Well-Being Panelists: Jeanie Garrett- LifeSynch A Humana Company Tim O’Neal- Meredith Corporation Phil White- Rackspace

2. The Relationship • Stress causes health issues and expense • Money is the lead cause of stress • The average cost of healthcare for a typical American family of four in an employer- sponsored health plan in 2012 is $20,728- and rising annually (Insurance Journal) • Health Care Reform is forecasted to increase the average cost of health care for all Is it any wonder why companies are seeking ways to manage employee stress and reduce health care costs?

4. Meet Our Panelists • Jeanie Garrett, LifeSynch • Tim O’Neil, Meredith Corporation • Philip White, Rackspace

5. Total Well-Being Financial Pilot Concept Jeanie Garrett LifeSynch September

6. Humana’s Well-Being Approach The Full Spectrum of Well-Being Living happily with a balanced sense of purpose, belonging, security & health. Health Purpose Service Vocational Advocacy Physical Emotional Spiritual Security Belonging Social Community Family Financial Personal Safety Family Environmental

7. Pilot Concept Financial Coaching Limited Pilot • LifeSynch partnered with a vendor to provide a financial coaching program to the Associates of LifeSynch for a period of six months at no cost to the Associate. The program consisted of on-site financial classes, one-on-one financial coaching, financial forums, identity monitoring, and unlimited access to the a related financial website. • The Pilot was designed to address the individual needs of the employee, based on their input to their coach during the first financial coaching session. Based on that input, the coach developed a “track” for the Associate. Each Associate had 30 days of unlimited coaching and, at the determination of the coach, the opportunity to receive up to an additional 60 days paid for by LifeSynch.

8. Strategic Intent Pilot ConceptFinancial Coaching Limited Pilot • Business Development – New Product • Well-Being – New Product supporting Security Well-being

9. Goals for Critical Success • Kick-off communication campaign to Associates • Schedule day and on-site classes; introduction to coaching availability • On-going publicizing of monthly financial webinars and incentives • Telephonic coaching utilization of 5% by Associates • Tracking and assessment of participation of on-site seminar and webinars. • Increased (10%) financial well-being self-assessment scores

10. Goal: Utilization of 5% RESULT: 11.7%* *Population = 475

11. Goal: Tracking Seminars & Webinars RESULT:

12. Goal: Increased ( by 10%) Financial Well-Being Scores RESULT: 20%

13. Key Drivers • Communication • Different Delivery Models • Repetition • Education • Engagement • Proactive • Incentives • Confidentiality

14. Status • Total Well-Being Strategy for Engaged, Healthy, Productive Workforce • For true culture change, incent organization, leadership team and employees through Engagement Acceleration: • Combine business measures (EPS, Days without Accidents, Quotas, etc.) with health, productivity and well-being measures (decrease stress, BMI, cholesterol levels, etc.) for a single incentive platform for right behaviors • Direct individuals to their available benefits, resources and organizational policies

15. The Health-Wealth Connection:A Business Case for Worksite Health & Financial Wellness Programs Tim O’Neil, Manager, Employee Health & Financial Wellness Meredith Corporation

16. Meredith Corporation Overview • 3,200 benefits-eligible employees • Operates in 24 different states • Self-funded medical plan • Spends approximately $25 million annually on health costs

17. 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 17

18. 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

19. Wellness Points Program • Increased $500 incentive to $650 • 1,000 points by October 2012 = $650 spread over 26 paychecks in 2013 • $800 spread over 26 paychecks for non-insured employees • <1,000 points = no incentive • Added Preventative Exams and Wellness Coaching to Points Program • Wellness Screening/HRA and Preventative Exams 350 points • Disease Management, Lifestyle Coaching and Tobacco Cessation (if applicable) 350 points • Campaigns and Initiatives 550 points • Spouse Wellness Screening, Wellness Points in 2013 • Screening Participant vs non-Participant Costs • Spouse Claims Trend vs Employee Trend

20. Wellness Screening Participants vs Non-Participants Difference = $1,524 per year

21. What About Nonemployee Plan Participants? 30% Increase since 2007

22. 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 2011 • 25% of wellness participants have more than three risks • $2,710 average incurred plan charges in 2011 • Non-participants • $3,766 average incurred plan charges 2011

23. Tobacco Cessation Program Statistics 55 participants went from User to Non-User Status in the last 2 years.

24. Tobacco Cessation • Companywide Tobacco Use • 2006: 11.4% • 2007: 10.7% • 2008: 9.0% • 2009: 8.3% • 2010: 7.5% • 2011: 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 • Another 22 participants quit in 2011

25. WWW.MeredithWellness.Com 25

26. Wellness Points ProgramCampaigns & Initiatives 26

27. Live Healthy Meredith

28. Wellness Bucks Program • Employees participate in wellness campaigns to earn Well-Bucks • Employees can use Well-Bucks to be reimbursed for purchases including: • Athletic Shoes • Fitness Apparel • Therapeutic Massage • Exercise/Fitness Equipment • Pre-Retirement Financial Counseling • Toward any of the current wellness reimbursement categories

29. Specialized Well-Bucks Campaigns 29

30. 30

31. 31

32. 32

33. Meredith Wellness on the go 33

34. Financial Wellness Participation

35. Engagement Matters Des Moines Financial Wellness Score – 6.4 in 2010 and 7.2 in 2012 *75.8% of employees in Des Moines have completed a workshop New York Financial Wellness Score – 5.8 in 2010 and 6.1 in 2012 *23.9% of employees in New York have completed a workshop

36. Engagement Matters Des Moines High Distress – 16.5% in 2010 to 7.7% in 2012 *75.8% of employees in Des Moines have completed a workshop New York High Distress – 23.5% in 2010 to 20.2% in 2012 *23.9% of employees in New York have completed a workshop

37. Engagement Matters Des Moines High Cash Flow Stress – 34.1% in 2010 to 22.0% in 2012 *75.8% of employees in Des Moines have completed a workshop New York High Cash Flow Stress – 40.5% in 2010 to 40.3% in 2012 *23.9% of employees in New York have completed a workshop

38. Engagement Matters Des Moines Low Savings Rate – 25.6% in 2010 to 15.2% in 2012 *75.8% of employees in Des Moines have completed a workshop New York Low Savings Rate – 47.2% in 2010 to 37.9% in 2012 *23.9% of employees in New York have completed a workshop

39. Engagement Matters Des Moines Understanding of Benefits – 81.4% in 2010 to 89.3% in 2012 *75.8% of employees in Des Moines have completed a workshop New York Understanding of Benefits – 62.1% in 2010 to 70.2% in 2012 *23.9% of employees in New York have completed a workshop

40. Financial Wellness Outcomes

41. Financial Wellness Behavior Change

42. Aggregate Wellness Scores (National Media Group)

43. Aggregate Wellness Scores (Local Media Group)

44. Flattening the Slope of Healthcare Cost Increases

45. Annual Employee Contributions • Since 2008 • High Deductible Plan: 0% • Healthy 500 Plan: 2% increase • Healthy 250 Plan: 4% increase • 2012 • Non-Wellness Participants: 20%

46. Annual Employee Contributions • Annual Savings for Employee Wellness Participants • Employee Coverage: $1,309.11 • Employee + Spouse Coverage: $2,617.85 • Employee + Child(ren) Coverage: $2,487.20 • Family Coverage: $3,926.59

47. National Recognition and Awards • WELCOA Platinum-Level Well Workplace (2011) • United HealthCare “Well Deserved” Award (2008, 2010, 2011) • AHA Platinum-Level Fit Friendly Company (2009, 2010, 2011, 2012) • WELCOA Gold-Level Well Workplace (2008) • Partnership to Fight Chronic Disease “Promising Practices” in Worksite Wellness Award (2009) • League of American Bicyclists Silver-Level “Bike Friendly Business” Award (2009, 2011) • New York Post , Fortune, Forbes Magazine, HR Magazine and several Special Interest Publications

48. Organizational Alignment • Policy change • Tobacco-free workplace – January 1, 2008 • Enhanced health club subsidy – January 1, 2009 • Bicycle Commuter subsidy – July 1, 2009 • Wellness Points & Well Bucks – January 1, 2010 • Spouse Participation in Wellness Screening – Fall 2012 • Value-Based Benefit Design – Future Initiative • Linking on-site medical center to data • Eliminating duplication • Integrating data

49. For Additional Information Meredith Financial Wellness Case Study http://www.personalfinancefoundation.org/

50. For Additional Information Meredith Wellness Case Study http://www.welcoa.org/freeresources/index.php?category=17