Why Wellness Matters Now - qchealthinitiative.org · Why Wellness Matters Now: Setting the...
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Why Wellness Matters Now:Setting the Foundation for Success and Sustainability
Second Annual Worksite Wellness ConferenceNovember 4, 2014
Wellness
History of Wellness
• Safety• Fitness
1890‟s
• Wellness Continuum
1960‟s• Diet• Exercise
1980‟s
• Well-Being
2000‟s
The New Wellness Landscape
Personal Wellness
MBGH Employer Member SurveyWhy should an employer offer health benefits and wellness activities?
• 84% of employers believe health benefits are a necessary cost of
doing business - Helps to recruit and retain talent
• 85% of employers view health benefits as an investment in
human capital
• 95% of employers agree there is a link between an employee‟s
health and productivity – Want to ensure a healthy workforce
• A majority of employers want employees to take responsibility
for their health
• As a response to a health system that has overly focused on the
management of chronic conditions rather than wellness and
prevention
The Current Health Care Environment
• The health care delivery system is changing and consolidating
– ACOs - Medical Homes - Onsite clinics - Centers of Excellence
• Technology‟s growing impact on health care
– Online information - Mobile apps
– Wearable monitoring devices
– eVisits - Telemedicine
• Health insurance premiums have increased on average 8 – 12% a year
• Health vendors focused on comprehensive population health management strategies
• Companies - reducing costs across all areas of the organization
MBGH Benchmarking Surveys
2014 MBGH Employer Survey Health Management Priorities
45%
56%
59%
59%
64%
0% 10% 20% 30% 40% 50% 60% 70%
OFFERING MORE TARGETED WELLNESS PROGRAMS
CREATING A CULTURE OF HEALTH
CREATING EFFECTIVE BENEFIT COMMUNICATIONS
AVOIDING THE 2018 EXCISE TAX
REDUCING HEALTH CARE COSTS
2014 MBGH Employer SurveyWellness Activities Priorities
42%
42%
35%
54%
33%
32%
32%
38%
44%
62%
0% 10% 20% 30% 40% 50% 60% 70%
INCENTIVE/DISINCENTIVES TO IMPROVE ENGAGEMENT
STRESS/RESILIENCY PROGRAMS
EFFECTIVE WEIGHT MANAGEMENT PROGRAMS
INCREASE EMPLOYEE USE OF PREVENTIVE SERVICES
INCREASE EMPLOYEE ENGAGEMENT
High Priority Medium Priority
2014 MBGH Employer SurveyWellness Activities Priorities
44%
38%
31%
18%
21%
21%
0% 10% 20% 30% 40% 50%
OFFERING FITNESS CHALLENGES
OFFERING HEALTHY FOOD CHOICES AT WORKSITE
REDUCING TOBACCO USE AT THE WORKSITE
High Priority Medium Priority
Around the World2012 Buck Global Wellness Survey
Around The World2012 Buck Global Wellness Strategy
Making the Business Case for Wellness
Making the Business Case for Wellness
After payroll,
employee benefits is company‟s
largest budgeted expense
Small Business Strategies Criteria to Consider
• Capturing CEO Support
• Designating a Company Wellness Leader
• Conducting an Employee Health Interest Survey
• Implementing Healthy Policies and Procedures
• Providing an Opportunity for Health Screening
• Administering an Annual Physical Activity Campaign
• Holding a Healthy Eating In-service/Lunch „n Learn
• Establishing an In-house Wellness Library
• Disseminating a Quarterly Health Newsletter
• Supporting Community Health Efforts
Source: WELCOA, https://www.welcoa.org/services/build/wellness-small-business/
Making the Business Case for Sustainability
• Assess current population health status
• Use company data to determines direction and trend – compare to industry benchmark
• Use data that is actionable
• Answers the question “Why should we take action?”
• Assess current benefit design strategy • Does it support employees navigating the healthcare system
appropriately? (benefits, incentives/disincentives, etc.)
• How and when to incentivize? • Focus on “readiness to change” as well as behavior change
• Use key activities to highlight overall wellness
• What programs/activities will anchor your wellness strategy?
• Annual Fitness/Walking Challenge
• Biometric Screenings
• Maintain and Internal Health Management Team
• Brings together key stakeholders in the company that are focused on employee health, safety, benefits, compensation, workers comp, etc.
• Engages leadership through program outcomes and participation
• Team has access to decision-making authority in order to move forward with programs and activities
Making the Business Case for Sustainability
MBGH 2010 Landmark Research Triggers and Barriers to Engagement
MBGH Research Triggers and Barriers to Engagement
Project Objectives
• To better understand what prompts (triggers) or prevents (barriers) employees from participating or maintaining involvement in employer-sponsored health benefits and health improvement programs.
• To gain insight into what motivates and engages employees to take responsibility for managing their own health, and what it takes to support them in changing unhealthy behaviors.
• To determine the influencers of employee decisions and actions by collecting input from audiences beyond the employee - specifically, physicians, spouses and health coaches.
• To use the findings to support employer efforts in effective and efficient benefit design, administration and communication of health care and VBD benefits, wellness programs, incentives and health improvement activities.
MBGH Research Triggers and Barriers to Engagement
Participating Organizations• 3 Manufacturing Companies (L)
• 1 Hospital (M)• 1 Health Care Delivery System (M)
Individual Participants• 140 employees completed online survey • 22 Focus groups conducted• 192 Total # of focus group participants
• 148 Employees• 14 Physicians• 14 Spouses (2 companies)
• 16 Health coaches (2 companies)
MBGH Research Triggers and Barriers to Engagement
MBGH Research Triggers and Barriers to Engagement
Top barriers: Trust, Time, Money, Convenience, Stress
• Family and loved ones can have strong influence on employee behaviors – BUT can be a barrier to supporting healthy lifestyle change
• For women, guilt about making health a priority– feel they need to take care of others vs. themselves - especially true for mothers, single-parents and health care workers
• Men do not like to be told what to do. Due to the economy, they feel pulled to spend more time at their job, rather than being with family –adds stress.
• Employees concerned with confidentiality do not want to provide information to a health coach they don‟t know or complete employer assessments if they don‟t know what happens to results
MBGH Research Recommendations for a Successful Health Management Strategy
• Make sure your company‟s benefit design helps employees and covered dependents navigate the healthcare system effectively
• Provide employees with concise communications on benefits coverage and options, out-of pocket costs and descriptions of benefit changes
• Structure incentives as part of the benefit design - employees may value them more AND it can maximize the organization‟s investment
• Determine the overall picture of health using agreed upon metrics
• Share your company‟s needs with health management vendors (i.e. data access, potential outcomes, etc) - coordinate efforts so a consistent message is conveyed to employees
• Have performance measures built into your health plans and pharmacy benefit vendors that support medication compliance
• Provide self-care resources (i.e. handbook) that offer ways employees can better manage when to see the doctor
Employer Case Studies
Improving Employee EngagementOutcomes-based Incentives
• Growing interest in employers integrating outcomes-based (or results-based) incentives into existing incentive program designs to increase personal accountability and achieve results
• Differs from traditional, participation-based incentive programs which may or may not lead to a measurable difference in key health factors
• Emerging industry best practices indicates that…..
Employers that combine incentives for participation in healthy activities with rewards for healthy outcomes can increase engagement in health and wellness programs
Employer Example Outcomes-based Incentives
Employer A Employer B
Industry/Size/locati
on(s)
Manufacturer / 34,000 employees /
various locations around the country
Printing / 22,000 / various locations
around the country
Branded Wellness
Strategy
Yes Yes
Company Health
Goals
Develop an incentive program that
targets risks proven to drive costs
Design a program that increases
awareness and accountability for
health risks and costs
Focus cost differentials on the highest
risk population and provide achievable
goals
Provide employees and their families
sufficient time to plan for change
Control costs by providing a full range
of healthcare services
Focus on wellness, preventive
medicine
Offer benefits that attract, retain staff
Maintain flexibility in benefits design
Improve patient access with onsite
and near site facilities
Want to shift from “fixing” to
“preventing”
Initial Wellness
Strategy
Offering gift cards for screening
participation
Know Your Numbers Campaign
Premium differentials
Monetary rewards depending on
level of engagement
Employer ExampleLearnings: Outcomes-based Incentives
• Communicate early and often – Communicate overall strategy – no surprises!
• Use data to determine next steps
• Provide ongoing employee support
• Clear and persistent communications critical to success
• Use the underlying theme of personal responsibility for your own health
• “Confidentiality is the cornerstone of our company‟s message”
Developing a Culture of Health
Culture of Health: “The creation of a working environment where employee health and safety is valued, supported and promoted through workplace health programs,
policies, benefits, and environmental supports…”
Building a Culture of Health
• involves all levels of the organization
• establishes the workplace health program as a routine part of business operations aligned with overall business goals
• Results have a positive impact on health care costs and improved worker productivity
• Encourage engaged and empowered employees
This takes Time& Commitment !Source: Center for Disease Control and Prevention
Employer ExamplesCulture of Health Strategies
Case Study: Lincoln IndustriesCulture of Health
Number of employees: 600
Annual Health Care costs are 40% lower than industry standards
Source: Welcoa Employer Case Studies
Measuring ROI and Investing in Wellness
Measuring ROIGaining Value for Your Investment
• To measure ROI to reduce health care costs and productivity
• Align programs with metrics that can affect health care costs and productivity
• Align benefit strategy to impact health care costs and productivity
• Measuring Value on Investment• Identifying the benefits
• Impact is on satisfaction
• Provides opportunity for population to connect
• Engages people to take responsibility for their health
ROI and Wellness
• Most companies don‟t define ROI – some are moving to VOI
• Some use reduction in health care costs as the only valuable metric – others are moving to what’s the “value proposition?”
• Vendors have used “cost avoidance” metrics – has gotten a “bad rap” in the news
Companies Need To:
• Determine agreed upon metrics that will be valuable to the C-Suite
• Focus on policies and benefit design strategies that increase engagement and support employees to navigate the health care system
• Develop an overall strategy that includes leadership support, a focus on reducing risk, engagement and culture of health
Employer Investment in Wellness Is it having an impact?
Employer Investment on Wellness Effect on the Economy
What‟s Next for Employers?
• Outcomes-Based Incentives
• Defined Contribution
• Plan Options: Movement towards CDHPs
• Public/Private Exchanges
• Specialty Pharmacy
• Chronic condition management through technology
• Onsite clinics/Tele-medicine
Q & A
THANK YOU!
Margaret Rehayem
Senior Director of Strategic Initiatives and Communications
Midwest Business Group on Health
www.mbgh.org