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Healthy Living Yields Results

June 21, 2007

Keynote Address:Charles MontreuilVice President, Corporate HREmployer’s Leadership Summit

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Welcome to the Employer’s Leadership Summit

> What you will learn about Healthy Living and Healthy Working – The New Value Chain for Employers

– Companies will present their employee-centered strategies and evidence-based best practices

– The fundamentals of health and performance improvement (HPI); namely how to:• Impact employee health and job satisfaction to yield organization-wide results• Use people’s (employee’s) personal values to design the benefits in an employer’s

health care coverage for its employees• Receive the full benefit of value-based benefit design• Understand Governor Pawlenty’s “Fit Workplaces” initiative• Conduct an effective workforce HPI assessment and gap analysis• Identify the critical elements and steps required to design and implement an HPI

strategic plan• Advocate for a more accountable health care system, higher quality of care,

enhanced efficiencies and incentives and opportunities for all stakeholders; and• Identify the critical success factors that drive healthy living, healthy working and

healthy performance outcomes (organizational success) that increase value for companies and employees

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What You Will Learn

As a result of this conference, your

employees should look like pro athletes and perform like All-Stars

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Torii Hunter, Minnesota Twins Centerfielder

> Works with a personal trainer, both during the season and off-season

> Lifts weights to maintain upper body strength

> Has a 32-inch vertical leap – he keeps his legs strong in the off-season by doing box jumps

> Maintains healthy weight at 210> Knows how to have “fun” to help

handle stress of playing baseball --Torii is responsible for the variety of “Twins” handshakes -- every player has his own personal handshake, all of which are concocted by Torii

> Plays 162 Games per Season

Torii Hunter, Age 32Centerfield, MN Twins #48Height 6’ 2” Weight 210

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Torii Hunter – The Results

> 1993 - 1st team High School All-American OF 2001

> AL Golden Glove Award (OF), AL MVP (Voting Rank: #21)

> 2002 - Minnesota Twins Player of the Year, AL Golden Glove Award (OF), AL MVP (Voting Rank: #6), Played in MLB All-Star Game

> 2003 - AL Golden Glove Award (OF) > 2004 - AL Golden Glove Award (OF)> AL MVP (Voting Rank: #21) > 2005 - AL Golden Glove Award (OF) > 2006 – AL Golden Glove Award (OF)

> 2004 recipient of the Carl R. Pohlad Award for Outstanding Community Service

> Started Torii Hunter Project

> R.B.I. TwinsCare (A ticket program for underprivileged youth

> 4,133 At Bat> 617 Runs> 1,120 Hits> 178 Home Runs

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Where Should Our HealthCare Dollars Be Spent?

Until Now…

Healthcare dollars pay for illness and lost productivity resulting from illness

The Future…

Healthcare dollars will pay for health, resulting in a more healthy, satisfied, productive workforce

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The State of Health Care at Carlson

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The Health of Carlson Depends on the Health of Our Employees

• Our people are our competitive advantage

• Employee engagement is the centerpiece of our people strategy

• Health and productivity are inextricably linked

Yesterday’s Assumption:Health is a cost driver. Initiatives to improve employee health are

primarily a strategy for controlling top-line expenses.

Today’s Reality:Health is a performance

driver. Investing in health not only controls

expenses, but also protects, supports and

enhances our employee’s ability to BE GREAT.

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To Realize Total Value, We Must Understand Our Costs…

$95,456$86,778$78,889$77,038*

2009200820072006

Carlson Projected Healthcare Costs (000’s and excluding CRW):

This is not “rocket science”:If we do nothing our businesses cannot sustain

the increased costs

*Annualized Navigant Claims

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…And the True Cost of Healthcare Includes So Much More…

> Typical disease states plus lost time per year:

> 2006 Carlson Data:

$94,000,000$3,000,000 =$14,000,000$77,000,000

22,500Doctor Visits

78,000 Sick Days +Health Plan +

…And this does not include Presenteeism …The cost of people who come to work, but are not

fully engaged because of health or personal problems

3 days$13,324Diabetes

3 days$200Flu

12 – 36 days$4,000Depression

3 days$3,740Asthma

Unproductive TimeAnnual Cost

Condition

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…And It’s Getting Worse, Not Better…

> The Baby Boom generation is aging – the number of workers age 25 to 44 is decreasing – the net result is increased chronic illness

> 64% of adults over 20 are either overweight or obese –projecting 73% in next three years

> 20 million Americans have diabetes (41 million are pre-diabetic)

> Between 19 billion and 40 billion dollars a year are spent on unnecessary care

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Healthy Living Starts at the Top -- Company

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Healthy Living Starts at the Top

> Marilyn’s Video

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Marilyn Carlson Nelson, CEO, Carlson

Age 29+

Stays very active

Does Pilates three times a week

Maintains healthy weight and lifestyle

Practices Yoga

Rollerblades

Believes “the health of Carlson depends on the well-being of our colleagues”

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Marilyn Carlson Nelson -- The Results

Marilyn Carlson Nelson is chairman and chief executive officer of Carlson, a global group of integrated companies providing business and leisure travel, hotel, restaurant, cruise, and marketing services

• The Icon Award, National Business Travel Association, 2006

• 18th Annual Lucia Trade Award, Swedish-American Chamber of Commerce, 2005

• "Business Woman of the Year" by the U.S. Commerce Department's Small Business Administration, 2005

• "The World's 100 Most Powerful Women" by Forbes magazine, 2004, 2005, 2006

• Hospitality Industry Lifetime Achievement Award, Hospitality Sales & Marketing Association 2004

• ATHENA Award, ATHENA Foundation, 2004

• Travel Industry Association of America, Travel Industry Hall of Leaders, 2003

• Sales & Marketing Executives International Hall of Fame, 2003

• Lifetime Achievement Award by International Hotel Investment Forum, Berlin, Germany, 2002

• Responsible Capitalism Award by FIRST Magazine, London, England, 2001

• Cutting Edge Award by American Hotel & Lodging Association (AHLA), 2001

• "Hospitality Executive of the Year" by Penn State Hotel and Restaurant

Photo: Marilyn Carlson Nelson (left) with panel members and President George W. Bush

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Carlson’s Be Well Program

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Carlson’s Branding Creates the Lifestyle and the Culture

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Expected Benefits from Carlson’s Three-Year Healthcare Strategy

75% of employees onhealth plan complete

Wellness Assessment and will enter their Blood Pressure, BMI and Cholesterol

Employee productivity and engagement improved

100% of eligible employees actively utilize myHealthfolio

75% of chronic/catastrophic participate in Disease

Management programs

$3,000,000 to $6,000,000 cost avoided by moving forward with this strategy

75% will participate in at least one wellness program to earn gold points as we Beta Test Revolution Health Incentive Program

50% of employees will participate in at least one community activity promoting health

All employees will have a better understanding of

preventive care

25% reduction in the number of smokers at Carlson

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One Size Doesn’t Fit All

> Be Well is Carlson’s approach, but there are many other innovative options available:

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Healthy Living -- Community

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Minnesota Building Blocks

> The Buyers Health Care Action Group (BHCAG) is a coalition of private and public employers working to redirect the health care system to focus on a collective goal of optimal health and total value. Our vision is that health care consumers get the care they need at the right time, in the right place and at the right price

> Providers and health plans develop consensus on evidence based guidelines, relevant measures, and provide implementation support

> Aggregate payer data, review physician performance according to ICSI measures, publicly report results

> Reward performance through existing health plan programs and BTE

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The Minnesota Bridges to Excellence Champions of Change

> 3M> Carlson Companies> General Electric> Honeywell> Medtronic> State of Minnesota Department of Employee Relations> State of Minnesota Department of Human Services> Target Corporation> Visant (formerly Josten’s)> Wells Fargo

The Champions of Change are early adopters of Minnesota Bridges to Excellence. These entities are taking the lead in publicly signaling the medical community that health care purchasers want to pay and reward providers for optimal care, not quantity of services performed

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Champions of Change Awards/ Awarded Medical Groups in July 2006Affiliated Community Medical Centers – Willmar MNColumbia Park Medical Group – Fridley MNFamily Health Services of Minnesota – St. Paul MNHealthPartners Central Minnesota – St. CloudHealthPartners Medical Group – Minneapolis MNMayo Clinic – Rochester MNMultiCare Associates of the Twin Cities – Fridley MNSuperiorHealth Medical Group – Duluth MNWestern Wisconsin Medical Associates – Hudson WI

Groups with HealthPartners Central Minnesota

Alexandria Clinic - AlexandriaBroadway Medical Center - AlexandriaFamily Medical Center – Little FallsFoley Medical Center - Foley Warren Luedtke MD – St. CloudLakeview Medical Clinic – Sauk CenterMille Lacs Clinics - OnamiaPaynesville Area Health Care System - PaynesvilleRiverplace Clinic – MonticelloUnity Family Health Care/ St. Gabriels – Little Falls

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Healthy Living – The Individual

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Your Typical Employee? Can They Change?

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Charles Montreuil – Before and After

> Last year, began training with wife for 3-Day Breast Cancer Walk – as a result lost 35 pounds

> Has kept weight off by walking and watching what he eats

> Utilizes stress relievers such as sports and travel to maintain stress

The key to empowerment is a cultural shift that moves

employee’s perceptions from one of benefit entitlement to that of

shared ownership in personal and organizational health

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Dr. Halvorson’s “15 Healthy Habits of Highly Effective Employees”

1. Wake-up and stretch2. Eat breakfast every day3. Avoid excess calories from snacks, beverages and desserts4. Set Pedometer goals greater than 10,000 steps per day5. Destination exercise – use alternative methods to get to work6. Stress management7. Utilize Fat Burning Exercise at conversation level8. Improve Cardio heart rate and CO2 Maximum9. Employ muscle resistance training, weights and daily

tasks10. Drink 80+ ounces of water a day11. Eat a tossed salad12. Strive for five servings of fruits and vegetables

every day13. Take care of your spiritual well-being14. Get a good night’s sleep; and

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Key 15 – Remember…

“Mastery of others is strength...mastery of oneself is true power”

Lao-tzu

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Conclusion

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Conclusion

Healthy Living Starts at the Top – the Company…

And ends with the employee

– The Individual

Builds through Initiatives –the Building Blocks – The Community

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