Implementing an Effective Employee

Wellness Program
Presented by:
Christopher J. Labbate
Senior Vice President
Corporate Consulting Services
605 Third Avenue
New York, NY 10158
(212) 808-5581

www.ccsbenefits.com
Agenda
 The Case for Wellness
 Defining Wellness
 Factors Driving Wellness Movement
 Focus of Wellness Programs

 Key Components of a Wellness Program

 Weight Management
 Smoking Cessation
 Healthy Living
 Health Risk Assessment
 Biometric Screening

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Agenda
 Key Components of a Wellness Program
 Incentives
 Communication
 Reporting

 Keys to Success
 Vendor Considerations
 Sample Pricing
 Summary / Questions
 Web based Resources / Handouts / Sample Vendors

Please Ask Questions At Any Time! 3

 The Case for Wellness
Simply Put . . .
“ Get employees healthier and they will cost
employers less. They will also be happier, more
productive, and absent less. ”
- Sonic Boom Wellness

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The Case for Wellness . . .

Defining Wellness
 Wellness is an interactive process of becoming
aware of and practicing healthy choices to
create a more successful and balanced lifestyle.

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The Case for Wellness . . .

Factors Driving Wellness Movement

 Prevalence of health risks and unhealthy behaviors

 Smoking
 Obesity
 Continued escalation of health care costs
 Demand for broadening the scope and delivery of
wellness to the masses
 Employer pressures to . . .
 Lower costs
 Increase productivity

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The Case for Wellness . . .

Factors Driving Wellness Movement

 Prevalence of Obesity
 Responsible for > $90 billion in U.S. healthcare expenditures1
 Medicare spends about 34 percent more on obese person2
 Among adults aged at least 20 years in 1999 to 2002, 65.1%
were overweight or obese, 30.4% were obese, and 4.9% were
extremely obese3
 18.2 million Americans currently have diabetes (avg. cost =
$13,237/yr.), with annual health care costs 5 x greater that
person without diabetes
 Adults who were overweight and didn’t smoke at age 40 lived
about 3 years less than adults who were normal weight and
didn’t smoke4

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The Case for Wellness . . .

Factors Driving Wellness Movement

 What it Means to Average Employer . . .
 Medical costs are 77% higher for obese person

 A BMI (Body Mass Index) > 27 (overweight) equals an

average production loss of 5.79 hours/week

 An obese person averages 7 or more absences per year

 Obese related disabilities cost employers upwards of $8,720

per claimant per year

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The Case for Wellness . . .

Factors Driving Wellness Movement

 Prevalence of Smoking
 Cigarette smoking remains the leading preventable cause of
death in the United States, accounting for approximately 1 of
every 5 deaths (438,000 people) each year5

 Smoking prevalence rate is estimated to be approximately

20.8% (45.3 million people) of the U.S. population5

 Nationally, smoking results in more than 5.6 million years of

potential life lost each year6

 Smoking costs the U.S. over $167 billion/yr. in healthcare

costs5
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The Case for Wellness . . .

Factors Driving Wellness Movement

 What it Means to Average Employer . . .
 $1,623/Yr. is the average each smoker costs in excess
medical expenses

 Smokers 2x more likely for hospital admissions

 Smokers 50% more likely to be absent – & miss on average

5.5 more work days per year

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The Case for Wellness . . .

Factors Driving Wellness Movement

 Employer Perspective / Objectives . . .

 Decrease benefit costs
 Medical, disability, workers compensation . . .

 Decrease illness, absenteeism, presenteeism

 Improve morale and work environment

 Increase productivity

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The Case for Wellness . . .

Focus of Wellness
Sample Employer Risk Stratification

Wellness Program
Target Population
- Change/support behavior
to improve/maintain health
- Proactive disease
prevention
- Improved productivity,
decreased health care,
disability, and absenteeism
costs

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Key Components of a
Wellness Program

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Key Components of a Wellness Program . . .

Coaching
/ web
Tools /
Other
Programs

Healthy Living

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Key Components of a Wellness Program . . .

Weight Management
 Weight Management
 One-on-one telephone coaching
 Tailored assistance: goal setting, diet, exercise, relaxation
skills, and other solutions for weight management, assessing
progress, overcoming barriers, encouragement, and ongoing
education.
 Coaches: certified nutritionists / exercise / coaches
 Supplemental Tools:
 Online tools
 Onsite education sessions
 Educational materials

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Key Components of a Wellness Program . . .

Weight Management

Sample Schedule of Telephone Sessions (Healthyroads)

• Kickoff Session - 1 initial session per year (up to 30 minutes) with a health educator
to receive an overview of available services, set initial health improvement goals, review
confidentiality, and establish rapport.

• General Assessment Session – 1 session (up to 30 minutes) with a health educator,

which includes conducting a general assessment and health status questionnaire,
establishing baseline data, and reviewing medical history and any pharmaceutical
prescriptions.

• Weight Management Program - 8 telephone sessions (up to 30 minutes) with a team

of registered dietitians, nurses, and certified personal trainers (health educators), which
include individualized sessions on setting goals, diet, exercise, relaxation skills, and
other solutions for weight management. Limit: one series per member per year.

• Motivational Coaching Program - Up to 4 coaching sessions per month (up to 30

minutes) by health educators, which include individualized coaching on setting goals,
assessing progress, breaking down barriers, consultative problem solving, providing
encouragement, and ongoing education.

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Key Components of a Wellness Program . . .

Smoking Cessation
 Smoking Cessation
 One-on-one telephone coaching:
 motivation, strategies, coping skills, goal setting, assessing
progress, overcoming barriers, ongoing education
 Coaches: certified tobacco cessation specialists
 Follow CDC Guidelines
 Education on:
 Strategies to quit & combat cravings
 Use of NRT (Nicotine replacement therapy)
 Supplemental Tools:
 Online tools
 Onsite education sessions
 Educational materials

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Key Components of a Wellness Program . . .

Healthy Living
 Healthy Living
 Nutrition
 Exercise (or physical activity)
 Wellness exams
 Safety
 Alcohol & drug use
 Stress reduction / Life coping skills
 Social support
 One-on-one telephone coaching:
 motivation, strategies, coping skills, goal setting, assessing
progress, overcoming barriers, ongoing education
 Supplemental Tools

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Key Components of a Wellness Program . . .

HRA
 HRA (Health Risk Assessment) - Employee questionnaire
covering topics . . .
 Medical / family history
 Exercise, nutrition, lifestyle
 Life coping skills
 Blood pressure, blood glucose, cholesterol
 Alcohol, drug, tobacco use
 Generally 50-60 questions or more (see sample)
 Usually web based and paper
 Results: personal & aggregate reports
 Employee - Personal wellness score / top risks (see sample)
 Employer - Aggregate population report (see sample)

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Key Components of a Wellness Program . . .

Biometric Screening
 Biometric Screening – Typical blood screening . . .
 Cholesterol (Total, LDL, HDL, Triglycerides)
 Blood pressure,
 Blood glucose,
 Body composition / body fat analysis
 Height, weight, BMI (Body Mass Index)
 Expanded tests . . .i.e., PSA, TSH, FSH, H&H . . .
 Usually onsite
 Results: immediate / incorporated into reports

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Key Components of a Wellness Program . . .

Incentives
 Incentives – Used to . . .
 Motivate
 Increase participation
 Reward for milestone accomplishments
 Reinforce and sustain positive behaviors

 Sample actions that receive rewards:

 Most improved health
 Get started
 Share results
 Keep going
 Exercise

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Key Components of a Wellness Program . . .

Incentives
 Methods:
 Cash
 H.S.A. / H.R.A. (Health Reimbursement Arrangement ) deposits
 Premium discounts
 Exercise reimbursement
 Raffles / Tangible Prizes
 Vacation
 Gift card / “store credits”
 Peer to peer recognition
 “More is not better”
 Simple, understandable, timely
 Must be HIPAA compliant (See handout)

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Key Components of a Wellness Program . . .

Communication
 Communication
 Key management involvement / support
 Planned campaign / timeline
 Member outreach campaign
 Relevant message
 Multiple media – posters, emails, payroll, internet, mail . . .
 Creative media
 Eye catching email subject lines / posters / graphics
 Personal orientation
 Ongoing supplements . . .

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Key Components of a Wellness Program . . .

Reporting

 Individual Reports for Employees (See sample)

 Overall wellness score
 Top risks
 Major modifiable health conditions
 Special sections (i.e., diabetes, hypertension, mental
health, . . .)
 Goal setting worksheet / actionable information
 Prior year benchmark

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Key Components of a Wellness Program . . .

Reporting

 Aggregate Reports for Employer (See samples)

 HIPAA Compliant
 HRA summary
 Risk factor prevalence & prioritization (Slide 12)
 Program utilization summary
 Flexible: by business unit / demographics
 Decision support for integration with:
 communications, onsite wellness, disease
management, health coaching
 Prior year benchmark

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Keys to Success

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Keys to Success

 Wellness Committee – Get involvement in design of

activities
 Employees
 Management
 Vendor participation
 Define goals
 Develop communication
 Understand . . .
 Highest risks
 Factors employees willing to work on
 Which employees to target

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Keys to Success

 Engage employees
 Easy access
 Evaluate
 Supportive environment
 Encourage
 Invest – time, people, $
 Enthusiasm
 Measure and adjust
 Reward

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Vendor Considerations

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Vendor Considerations
 Portable information
 HRA
 Access / reporting / feedback
 Coverage for multi-state employers
 Continuity of programs / services
 Certified coaches
 Accessing help: email, phone, in-person, internet
 Communication support
 Participation in wellness planning committee
 Online / offline programs
 Price

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Sample Pricing

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Sample Pricing
Core Program Pricing

Weight Management, Tobacco Cessation, & Healthy Living

Monthly Rates
Four Tier Rates
Employee only $3.40
Employee and spouse $6.78
Employee and child(ren) $5.09
Employee and family $9.83

Adult Only Rates

Employee only $4.08
Employee and spouse $8.13

Employee Only Rate

Employee only $4.42

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Sample Pricing
HRA Pricing
Basic services:
Electronic HRA $0.85 per eligible adult per month

Optional services:
Paper based HRA $19.00 per HRA processed

Phone based HRA $42.00 per HRA processed

Incentives
Cash incentive Cost of incentive +$15.00 fee per participant

Product voucher incentive Value of products redeemed + $10.00 fee

per participant

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Summary / Questions

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Web Based Resources
Web Based Resources:

 Centers for Disease Control & Prevention - www.cdc.gov

 Centers for Disease Control & Prevention Worksite Initiatives -

www.cdc.gov/nccdphp/dnpa/hwi/index.htm

 Developing a Wellness Committee -

www.cdc.gov/nccdphp/dnpa/hwi/program_design/wellness_committees.htm

 Mayo Clinic Health Management Programs - www.MayoClinicHealthSolutions.com

 Wellness Quotes - www.wellnessquotes.com

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Handouts

Handouts:
1) Healthroads Sample HRA: “Get A Healthy Start Goals and Health Assessment Survey”

2) Healthroads Sample Employee Reporting: “Individual Goals and Health Assessment”

3) Healthroads Sample Employer Reporting: “Health Risk Assessment Summary Report”

4) Healthroads Sample Employer Reporting: “Quarterly Utilization and Outcomes Reporting”

5) Department of Labor: “Guidance On Wellness Program Rules Under HIPAA”

6) Wellness and HIPAA

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Sample Vendors

1. American Healthways - www.americanhealthways.com

2. Elite Wellness - www.elitewellnessusa.com

3. Healthyroads - www.healthyroads.com

4. Matria Healthcare - http://www.matria.com/dm/wellness/index.html

5. Sonic Boom – www.sonicboomwellness.com

6. Wellcall - https://www.wellcall.com/wellness.aspx

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Footnotes
1 Daviglus, M.L. Health Care Costs In Old Age Are Related To Overweight And Obesity Earlier In Life. Health Aff. 2005 Sep
26.

2 Lakdawalla, D.N.; Goldman, D.P.; Shang, B. The Health And Cost Consequences Of Obesity Among The Future
Elderly. Health Aff. 2005 Sep 26

3 Hedley, A.A.; Ogden, C.L.; Johnson, C.L.; Carroll, M.D.; Curtin, L.R.; Flegal, K.M. Prevalence of overweight and
obesity among US children, adolescents, and adults, 19992002. JAMA. 2004 Jun 16; 291(23):284750.

4 Peeters, A.; Barendregt, J.J.; Willekens, F.; Mackenbach, J.P.; Al Mamun, A.; Bonneux, L. Obesity in adulthood and its
consequences for life expectancy: a lifetable analysis. Ann Intern Med. 2003 Jan 7; 138(1):2432.

5 Center for Disease Control and Prevention

United States Department of Health and Human Services (DHHS), Centers for Disease Control and Prevention (CDC),

6 National Center for Chronic Disease Prevention and Health Promotion. (2004). The Health Consequences of Smoking:
A report of the Surgeon General. Washington, D.C: U.S. Government Printing Office.

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