Health, Wealth and Wellness May 5, 2005 Debra Parenti, Lake Park High SD 108 Dave Carrell, Gallagher...
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Transcript of Health, Wealth and Wellness May 5, 2005 Debra Parenti, Lake Park High SD 108 Dave Carrell, Gallagher...
Health, Wealth and WellnessMay 5, 2005
Debra Parenti, Lake Park High SD 108
Dave Carrell, Gallagher Benefit Services
Agenda Health Trends – General Information Cost Containment/Hidden Wealth Why Wellness Programs? Wellness Programs/Health Promotion Wellness Program Successes Resources and Websites
Health Trends
Health“the condition of being sound in body, mind, or spirit; especially : freedom from physical disease or pain, the general condition of the body”
Merriam – Webster Dictionary
Health“ If I had known I was going to live this long I would have taken better care of myself.”
Mickey Mantle
We All Know About This Trend . . .
6.9%
17.1%
12.1%
10.1%
8.0%
6.1%
10.1%
14.7%
2.5%
1.1%
16.7%
18.6%
2.1%
0.2%
10.7%
12.3%
10.4%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Trend in Health Benefit Costs
Trend in Life Expectancy
Source: World Factbook 2001/Historical Statistics of the United States
65 70 75 80
1960
1970
1980
1990
2000
Average life expectancy
Trend of Increased Obesity White male executives age 30 – 40 lead the
field in girth acquisition, increasing at an annual rate of 6 percent, the fastest rate among workers studied
Percent of Obese Adult Population 1991: Men = 12%, Women = 12.2% 2001: Men = 21%, Women = 20.8%
Source: National Center for Chronic Disease Prevention and Health Promotion
Cost Containment/Hidden Wealth
Wealth“the abundance of valuable material possessions or resources ”Merriam – Webster Dictionary
Wealth“Leaders are often under pressure to simply shrink benefit expenditures immediately rather than consider the longer term benefits of a comprehensive wellness program built on the foundation of a solid 3-5 year plan ”
Jack London, Senior Consultant, North Shore - Apex
What are the costs of an unhealthy work force? Death Claims Disability Claims Workers Compensation Claims Absence Costs/Lost Work Days Productivity Losses Administrative Overhead Replacement Costs Over hiring Health Care Costs Legal Costs
What do We Know For Sure?
4%
31%
61%
38%
27%26%
12%
1%
0%
25%
50%
75%
Healthy Acute Chronic Catastropic
Medical Costs
Members
Source: Aetna
The Lower the Risks…..The Lower the Costs
% Of
Population
But Did You Know This?
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Group Health TotalAbsence
STD IncidentalAbsence
LTD FMLA WC
Direct Costs Lost Productivity
Average Annual Cost Per Employee
Total Cost of Health Risk
Source: IBI Full Cost Study
Why Wellness Programs?
Wellness“ the quality or state of being in good health especially as an actively sought goal”Merriam – Webster Dictionary
Wellness“ Yes, money will be saved, productivity will increase, but the most important message is that the employer wants the employee to be healthy for its own sake”John Bly, Officer of Greendale Education Association
Wellness“There's a need for accepting responsibility - for a person's life and making choices that are not just ones for immediate short-term comfort. You need to make an investment, and the investment is in health and education. ”
Buzz Aldrin, Astronaut
Why Should I Spend Time or Money to do This?
• People’s health is their own business• It’s not our business• It’s not serious business stuff• It’s too hard to do• No time• No $• It’s not worth the gamble
Why I Should Spend Time or Money to do This…
• Employees’ health is the employer’s business• Employers pay the “bill”• Health insurance is one of the largest growing costs• Numerous public and private resources available for
assistance• Start small and use your resources wisely and
creatively• The higher risk is to do nothing
Wellness Programs/Health Promotion
HIPAA “Bona Fide Wellness Programs”
1. Rewards must not exceed a percentage of the cost of employee only health plan coverage (10%, 15%, 20%)
2. Program must be reasonably designed to promote health and prevent disease, and participants must be given the opportunity to qualify for reward at least
3. Reward must be available to all similarly situated individuals4. Alternative standards must be available to achieve
the award
A wellness program that allocates a financial incentive contingent upon the satisfaction of a standard related to a health factor, must satisfy four criteria to be a “bona fide” wellness program
Keys to Health Promotion Success
Identify high risk employees and hire health coaches.
Make it about more than just fitness.
Give it top billing and communicate it to everyone.
Have third-parties coordinate key components.
Have a cheerleader.
Wellness Programs/Health Promotion
On-site Health Screenings Disease Management Lifestyle Modification Programs
• Smoking Cessation• Weight Management• Exercise• Nutrition
Lifestyle Modification Programs Diet & Exercise Weight Management Work/Family Life programs Health Information Libraries/Resources Smoking Cessation Personal Finance Management Disease Management
Work/Safety Modification Programs Behavior based Safety programs/Coaching Ergonomic Workstations, Tools and
Processes Facility Safety and Health Site Culture Environmental (i.e. air quality) On-site Health Screenings
Expectations and Advantages Many risks can be eliminated Losses can be managed and reduced Best practices strategies are effective Waiting prolongs losses and delays results
Measure Results/Evaluation
Track program participation and participant satisfaction
Monitor changes in attitudes, skills and behaviors
Evaluate changes in biometric results Measure impact on absenteeism, turnover and
morale Analyze ROI of health promotion programs
Wellness Program Successes
Wellness Program Successes Northfield Township SD 225 – Dr. Craig
Schilling, Asst. Superintendent of Business Affairs
Greendale SD (Greendale, WI) – Erin Gauthier-Green, Director of Business Services
Resources The Wellness Councils of America (WELCO)
www.welco.org National Wellness Institute
www.nationalwellness.org AARP
www.aarp.org MAP for Non-Profits
www.mapnp.org HHS – Safety and Wellness
www.os.dhhs.gov/safety
Closing CommentsEmployees are your most important assets. Invest in their care, at least as much as you invest in caring for your other assets.