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Healthcare costs are high and getting

higher, increasing at three times the rate

of inflation, for the foreseeable future. As a

result, employer health insurance premiumsincreased by 7.7% in 2006. Added to the

direct cost of healthcare benefits are the

financial burdens of absenteeism and lost

productive time. The US Department of Labor

estimates that absenteeism costs American

business between $30 40 billion each year.

What do both of these statistics have in

common? As it turns out, chronic medical

conditions, often caused by human behavior,

contribute significantly to absenteeism andrising healthcare costs. In fact, many employ-

ers have determined that preventing chronic

conditions in employees, and keeping chronic

conditions from getting worse, should have a

positive impact on their businesses by reduc-

ing both absenteeism and plan costs. Such

wellness programs can also improve worker

retention, since the quality of benefit pack-

ages is known to directly affect the career

decisions of employees and potential hires.

A recent industry study conducted by Willisconfirms that wellness and disease manage-

ment programs are becoming a big part of

benefit plan strategies. A third of the com-

panies surveyed have launched them, while

another third are planning to. These plans

may include components that measure risk,

manage disease, provide on-sight medical

screenings or promote healthy lifestyles.

Five Musts for SuccessWith Wellness and DiseaseManagement Programs

1: Make sure senior management

is fully committed.

Only with senior managements understand-

ing and enthusiastic buy-in can your company

embrace this new approach to trigger life-

style changes and healthier behaviors among

your employees.

2: Communicate to employees

regularly and frequently.

Employees must understand potential risk

factors and the tools and resources that will

help them, so theyre committed to healthier

behaviors and stay focused on the value of

good health.

3: Provide incentives to employees

to take an active role in main-taining healthy behaviors.

Rewards and incentivessuch as a

reduction in employee benefit contributions

tied to healthy behaviorsare essential to

maintain employee enthusiasm and lower

healthcare claims.

InsightsInsurance, Benefits & Risk Review

CONTINUED

www.willis.com

wellness

and disease

management

programs

A Healthy Workforce is

a Win-Win for Employersand Employees

Wellness and disease management programs should lower healthcare costs, and improve

employee productivity and satisfaction. What makes a program successful?

Issue 2 2007

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Quick Facts

Copyright 2007 Willi

Insurance, Benefits & Risk Review Issue 2 2007

For more information:Please contact your local Willis representative or call 1-866-406-0608, email insights@willis.com, or visit www.willis.com.

Willis is a leading global insurance broker providing insurance, risk management and human resource solutions

4: Develop a strong partnershipwith a quality vendor of health

improvement and management

programs.

These programs are comprehensive, multifaceted

and ongoing. They cant be done without a viable

vendor who has the know-how to succeed.

5: Develop clear program evalua-

tion systems with your vendor.

Like any process, wellness programs must

be evaluated and assessed in order to chart

employee progress and related return on

investment, and to make adjustments if

necessary.

Did You Know?

The Centers for Disease Control

and Prevention reports that

cases of chronic conditions can

be attributed to:

50% behavior, lifestyle

20% genetics

20% environment

10% access to care

Insights

According to the Department of Health and Human Services, chronic diseases cause

7 out of 10 deaths each year. The underlying causes are risk factors that can be

successfully modified years before they ultimately contribute to illness or death.

74% of private healthcare spending is attributable to the 45% of privately insured

individuals who suffer from one or more chronic conditions.1

25-40% of all patients in U.S. general hospital beds (not in maternity or intensive

care) are being treated for complications of alcohol-related problems. Annual health

care expenditures for alcohol-related problems amount to $22.5 billion. The total

cost of alcohol problems is $175.9 billion a year.2

1 Partnership for Solutions, Johns Hopkins University, the Robert Woods Johnson Foundation

2 AlcoholPolicyMD.com

Other sources for this issue:Willis Wellness and Disease Management Survey, November 2006The National Coalition on Healthcare