Workplace Wellness in the Age of Healthcare Reform

Workplace Wellness
in the Age of Healthcare Reform

Barry Hall, FSA

National Healthcare Reform Conference
Los Angeles
September 21, 2010

Health Care Reform Supports Wellness

• Calories to be posted in
chain (>20) restaurants • Health status-based
• Preventive screening co- incentives may rise
pays waived for employer National report on from current 20% to
Nursing mother plans* and for Medicare effectiveness of 30%, and later, to 50%*
break time and • Wellness program grants wellness programs • Wellness program
accommodations to small businesses (<100 (after periodic surveys demonstration
required EEs) for wellness programs and research) project in 10 states

2010 2011 2012 2013 2014
National health promotion plan

Childhood obesity demonstration project grants

Workplace health promotion effectiveness research
(plan sponsor tax of $1 per year per member, rising to $2)

The “law of the land” says health is not just about
reactive “sick care” – engagement is required.

* Applies to non-grandfathered plans

1

4th Annual Global Wellness Survey

Objective:
• Assess trends in employer-sponsored
wellness strategies and practices

Participants:
• 1,245 participating employers
• 47 countries
• 15 million employees
• All industry categories
Reports:
• Global survey report
• Executive summary in 8 languages
• To be released in October 2010
www.BuckSurveys.com

2

Workplace wellness is:

• Global

• Growing rapidly

• Becoming a business imperative

3

Location of Employees

Africa/Middle East 19%

Asia 33 %

Australia 16 %

Europe 34 %

North America 62%

Latin America 35 %

Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

4

Global Prevalence of Health Promotion Programs


5

Globalization of Strategy

STRATEGY IS GLOBAL*
(MULTINATIONAL EMPLOYERS)

No
46% Yes
54%

* Covers majority of employees regardless of geography


6

Status of Wellness Strategy

NUMBER OF YEARS WELLNESS STRATEGY HAS BEEN IN PLACE

0 - 1 year 13%

2 - 5 years 53%

5 - 10 years 16%

More than 10 years 14%

Don’t know 3%


7

Employer Objectives Driving Wellness Strategy
Africa/ Latin United
Mid East Asia Australia Canada Europe America States
Productivity/Presenteeism 2 5 4 1 1 1 2
Morale/Engagement 1 2 2 3 2 2 4
Absence 5 6 3 2 4 7 3
Workplace safety 2 4 1 6 6 3 6
Work ability 4 1 5 4 5 4 7
Org. values/mission 5 3 8 7 3 5 5
Attract and retain 8 8 7 8 7 8 8
Promote image/brand 7 7 6 9 10 10 9
Health care costs 11 11 10 5 11 11 1
Social responsibility 9 9 9 10 9 6 10
Comply with legislation 9 10 11 11 8 9 11
Supplement gov't care 12 12 12 12 12 12 12


8

Cost Burden of Chronic Disease

Direct Costs:
Health Care
20%

80%
Indirect Costs:
Productivity Loss

Source: DeVol R, Bedroussian A, et al., An Unhealthy America: The Economic Burden of Chronic Disease. The Milken Institute. Oct. 2007.

9

Health Issues Driving Wellness Strategy
Africa/ Latin United
Mid East Asia Australia Canada Europe America States
Stress 1 1 1 1 1 2 6
Physical activity/exercise 4 3 3 3 2 1 1
Nutrition/healthy eating 4 7 1 5 5 3 2
Work/life issues 4 2 3 2 3 12 10
High blood pressure 4 10 10 8 10 4 5
Chronic disease 2 9 9 7 13 5 3
Workplace safety 9 4 6 6 4 6 11
Depression/anxiety 8 13 7 4 7 9 9
High cholesterol 12 11 11 9 12 7 7
Tobacco use/smoking 11 5 13 11 8 10 8
Psychosocial work envir. 10 8 14 12 6 8 15
Obesity 15 14 8 14 14 11 4
Sleep/fatigue 16 12 5 9 11 14 14
Personal safety 13 6 12 13 9 13 13
Infectious diseases (HIV) 3 17 16 17 18 16 17
Maternity/newborn health 18 15 18 16 16 15 12
Substance abuse 14 18 15 15 15 18 16
Public sanitation 17 16 17 18 17 17 18


10

Key Challenges:

• Motivating/engaging employees

• Measuring impact

• Fostering a “culture of health”

11

Prevalence of Incentive Rewards (or Penalties)

Incentive rewards offered today
Not offered today, but have plans to offer
No plans to offer

United States 62 % 25% 13%

Asia 42 % 19% 39%

Canada 41 % 30% 28%

Africa/Mid East 34 % 24 % 41%

Australia 29 % 24 % 47%

Europe 25 % 11 % 63%

Latin America 16% 38% 46%

0% 20% 40% 60% 80% 100 %


12

Do Incentives Work?

EFFECTIVENESS OF INCENTIVE REWARDS AT INFLUENCING
BEHAVIORAL CHANGES AMONG EMPLOYEES

33%

24% 20%

15%

4% 4%

Extremely Significantly Moderately Minimally Not effective Don’t know
Effective Effective Effective Effective
5 4 3 2 1


13

Measurement and Outcomes


14

Measurement and Outcomes

REASONS OUTCOMES ARE NOT MEASURED

Insufficient resources to support measurement 59 %

Don’t know how to measure 36%

No priority from leadership 33%

Don’t believe there is a measurable return 13%

Don’t believe the cost of measurement is justified 9%


15

Healthcare Cost Trend Impact
REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS

Yes
18%

Don't know
60 % No
22%

AVERAGE ANNUAL REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS

More than 10 trend percentage points per year 2%

6-10 trend percentage points per year 10 %

2-5 trend percentage points per year 61%

1 or less trend percentage points per year 28 %


16

Building a “Culture of Health”

EXTENT TO WHICH THE
ORGANIZATION CURRENTLY HAS A
CULTURE OF HEALTH

37%
23% 22% EXTENT TO WHICH THE
10% 8%
ORGANIZATION PLANS TO PURSUE A
CULTURE OF HEALTH FOR THE
FUTURE
5 = Very 4 3 2 1 = Not at
much so All 54%

27%
33% 12%
6% 1%

5= 4 3 2 1 = Not at
Actively All
pursue

81%

17

Thank You!

Barry Hall, FSA
+1.617.275.8033
Barry.Hall@BuckConsultants.com

www.bucksurveys.com
www.buckconsultants.com

Workplace Wellness in the Age of Healthcare Reform

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