1. THE USE OF WELLNESS
INCENTIVES BY
EMPLOYERS
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2. Wellness Incentives Are Popular & Varied
n=22 n=16 n=13 n=12
100%
$1,000+
Results
HSA
No contribution
80 $500-$700
Prizes
$300-$500
60
Discount
Participation
40 on
Yes premiums
$100-$200
20
Cash
$1-$100
0
Offer incentives Basis of Average Format of
incentive amount incentive
(per yr)
Average
Source: ShapeUp Employer 375
amount
Wellness Survey
http://www.shapeup.com/survey Average Annual Incentive = $375
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3. Incentives Work For Some Programs, Not Others
Employee Participation by Program, 2011
50%
46%
45%
40
30
With Incentives
25%
20 19%
16%
Without Incentives
14%
10
0
HRA Biometric Disease
Participation Screening Management
Source: 2011 Towers Watson/National Business Group on Health Staying@Work (n=335)
ShapeUp Employer Wellness Survey http://www.shapeup.com/survey
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4. Employers Focusing On Penalties & Outcomes
Employers Using Penalties Employers Using Rewards or Penalties
in Their Wellness Programs Based on Health Outcomes
100% 100%
80 80
60 60
No
No
40 40
20 20
Yes
Yes
0 0
2009 2011 2012E 2011 2012E
Source: 2011 Towers Watson/National Business Group on Health Staying@Work (n=335)
Source: ShapeUp Employer Wellness Survey http://www.shapeup.com/survey
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5. Health Reform Is Expanding Use of Incentives
• Section 2705 of the Patient Protection and Affordable Care Act (ACA)
• Beginning in 2014, employers may use up to 30% of total health
insurance premiums (50% at the discretion of the secretary of
health and human services) to provide outcome-based
wellness incentives.
• Rewards can “be in the form of a discount or rebate of a
premium or contribution, a waiver of all or part of a cost-sharing
mechanism (such as deductibles, copayments, or coinsurance),
the absence of a surcharge, or the value of a benefit that would
otherwise not be provided under the plan.”
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6. Employers Also Employing Social Incentives
• Teamwork (social support)
• Competition (friendly)
• Public recognition (social status)
• Peer pressure (accountability)
• Social norms (company culture)
• Altruism (helping others)
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7. Employer Use of Social Incentives for Wellness
Social Networking
• 42 percent of high-performing companies plan to
incorporate some element of social networking into
their employee health initiatives by 2012
Wellness Competitions
• “This year, for the first time, workplace competitions
(individual or team competitions for weight loss,
physical activity, or other goals) are among the top
five program elements in several regions. This
reflects the rapidly growing popularity of such
activities, as employers seek new ways to motivate
and challenge employees to improve their health,
leveraging social psychology and peer motivation.”
Sources: Towers Watson 2010 Healthcare Report, Buck Consultants 2010 Global Wellness Survey
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8. Recommendations for Wellness Incentives
 Lump-sum financial incentives produce outcomes but are not very
sustainable.
 Smaller, real-time rewards can take advantage of behavioral
economic principles to boost outcomes.
 Social incentives produce outcomes as well and offer longer-term
sustainability.
 Financial and social incentives can be synergistic, more powerful
together than alone.
 Every population is unique and requires a customized approach
to behavior change.
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9. Prepared by:
ShapeUp
www.shapeup.com
@shapeupdotcom
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