This document discusses how to maximize return on investment from corporate wellness programming while complying with relevant laws. It recommends establishing a year-round program with online wellness tracking, health fairs for screening and education, targeted programs to address health risks, and incentives to encourage participation and lifestyle changes. Legal requirements under laws like the ADA, GINA, HIPAA, and ERISA are also outlined to maintain employee privacy and prevent discrimination.
Corporate Wellness Pogramming To Maximize Return on Investment (ROI)
1. Corporate Wellness
Programming To Maximize
Return On Investment (ROI)
Presented by:
Aida Visakay, Employee Benefit Advisor
John Buckley, Corporate Wellness Specialist
Andrée Laney, Employment Law Attorney
2. Introduction
• Aida Visakay: AxisPointe
President and CEO of AxisPointe, a boutique employee
benefit advisory firm since 1991. A speaker and author on
Health Care Reform.
• John Buckley: Health Fairs Direct
Johns Hopkins Graduate, Nationally recognized corporate
wellness speaker and author, owner of Health Fairs Direct
since 2000.
• Andrée Laney: Bressler, Amery & Ross
Employment Law Attorney in firm’s Florham Park, NJ
Office; counsels businesses on legal issues from
recruitment through termination.
3. Why Wellness as a Business Strategy?
• Reduce Medical Cost
• Increase Performance
• Reduce Absenteeism
• Increase Presenteeism
• Brand Company
4. Where Do Your Dollars Go?
What
can you
control?
20%
How are you
going to 80%
control it?
5. Cost of Chronic Diseases
Per Person Per Year
• Depression/Stress: $3,000
• High Blood Pressure: $343
• Obesity: $2,500
• Overweight: $401
• Smoking: $1,623
Milliman and Robertson Consulting, Journal of
Occupational Medicine, Journal of Occupational and
Environmental Medicine, Journal of Occupational
Medicine, CDC
6. Annual Cost of Obesity (2002)
Cost of obesity in the United States $ 117 Billion
Overweight population in the United States 35%
Obese population in the United States 31%
Obesity-related deaths in the United States 300,000
Additional drug costs for overweight patients $ 684
Number of lost workdays due to obesity 39,000,000
Number of doctor visits due to obesity 63,000,000
Percentage of cancer deaths that can be prevented through
33%
nutrition, exercise, and weight management
Number of diseases with higher prevalence due to obesity 15
Sources: “The Surgeon Generals Call to Action to Prevent and Decrease Overweight and Obesity”, US Department of Health and Human Services
www-incentahealth-com.netsolads.com/LowerHealthCosts.html
7. Impact of Weight on
Chronic Diseases
15% increased risk of the
following chronic diseases:
• Diabetes
• Heart Disease
• Respiratory
• Cancer
8. Wellness Options by Cost & ROI
Best
ROI Value
Least
Expensive
Service ?
?
nsurance Companies
2.5
n-House 17.5
2.51
Most
Expensive
ealth Fair 4.75
4.5
nline Wellness Portal
9. Case Studies
Using Wellness
• RX renewal with a 96% loss ratio:
9.5% increase. Same carrier
negotiated to 3.5%; different
carrier negotiated to 0% increase.
• Medical & RX with a loss ratio of
98% after a 2 year wellness
program we reduced claims to a
56% loss ratio: recommended
partially self-insured.
10. The Basic Goals for
Achieving Positive -ROI with Wellness:
• Hit a Broad Range of
Potential Issues to
Encourage Individual
Lifestyle Changes
• Give All Employees
Access to Wellness
Programs
• Personalize Wellness
Programs Using Today’s
Social Media
11. Organize Wellness Around
Online Wellness Tracker
Provide a Central Platform To Organize Your
Year-Round Wellness Activities
• Includes All Employees***
• Fun Interactive Wellness Challenges
• Reward Positive Behavioral Changes
• Encourages Avoiding Negative Behaviors
• Tracking Behavioral Change (Aggregate Data)
• Promotes Team Building
• Educational, Coaching, HRAs, Webinars, Etc.
12. Step 1
Full Service Wellness Events
Health Fairs
3. HRA/Medical Screenings -
Create Need for Change
• Local Exhibitors Resources –
Handle Issues
• Flu Vaccinations -
Standard Protection
• Wellness Related Promotional Items
–
Rewards & Incentives to Participate
13. Step 2
Receive Aggregate Data from Vendor
Review Aggregate Data
from Medical Screenings:
Establish Baseline of Issues to
be Addressed and Plan Year-
Round Programs for
Intervention
Option:
Combine aggregate data into Online
Portal to combine with behavioral data
already collected.
14. Step 3
Implement Program Components
Target Programs to Address
Health Risk Factors:
• Weight
• Blood Pressure
• Blood Sugar
• Cholesterol
• Smoking
• Lack of Exercise
• Work-Life Balance
Choose programs to encourage personal change with the least
amount of cost/effort on the part of the company.
15. Step 4
Implement Programs & Incentives
Programs:
• Lectures/Workshops
• Exercise Programs
• Wellness Challenges (Wellness Portals)
• American Heart Association
– “Fit Friendly Company”
Employee Incentives:
• Gift Cards
• Days Off
• Reduced Insurance Premium All health and wellness activities are not
• Reduced Cost to Health Clubs created equal from an ROI standpoint.
• Prizes Careful Planning and Execution are Critical
to achieve a Positive ROI.
17. Remember
The goal is to encourage
Remember:
individual lifestyle changes. Essential
Components:
• YEAR ROUND Wellness Programming
• Interactive Wellness Challenges
• Incentive Based Activities
• Address a Broad Range of Interests
• Target Individual Health Risks
• Bring Resources To Your Employees
Wellness programs are individualized based
on your company’s culture.
18. Wellness Program Legal Checklist
Part of an insurance plan or a
standalone?
Who administers wellness program?
Are incentives based on participation
or standards?
Provides medical or non-medical
benefits?
Mandatory or voluntary?
Comply with applicable federal and
state law.
Maintain confidentiality.
Receive only aggregate data.
19. Health Care Reform (PPACA)
Stay Tuned
Future of Act uncertain.
Be prepared to be compliant.
Impact on Employers
• $200 million worth of grants to
small businesses for wellness
programs.
• Must provide free preventive care.
20. HIPAA: Privacy and Nondiscrimination
• Applies only to “group health
plans.”
• Prohibits discrimination based
on health factors.
• Prohibits sharing identifiable
health data with employer.
• Penalties for violations: $100
to $1.5 million per year.
21. GINA: Voluntary Disclosure Only
• Prohibits acquiring, disclosing or
discriminating based on genetic
information.
• Employees can disclose genetic
information voluntarily.
• EEOC suggests that employers include
“Safe Harbor” language on all wellness
program materials.
• Violations may trigger administrative
claims/lawsuits of discrimination.
• Can subject employer to HIPAA fines.
22. ADA: Confidentiality & Accommodation
• Prohibits discrimination based on
disability.
• Generally prohibits inquiries about
employees’ disabilities.
• Requires reasonable accommodation
if necessary to participate in program
or meet incentive standard.
• Requires all employee medical
information to be kept confidential
and maintained separate from
personnel files.
23. ERISA: Mandatory Programs
• Applies to wellness
programs that provide
or pay for medical care.
• Prohibits interfering
with employees’ rights
under employee
benefit plans.
24. Other Laws To Consider
• Title VII
• ADEA/OWBPA
• FMLA
• FLSA
• NLRB
• Workers Compensation
• Lawful off-duty conduct protections
• State anti-discrimination laws
25. Questions??
Aida G. Visakay, CEO, CFP Contact us for:
AxisPointe, Employee Benefit Advisors
P: (973) 299-0022 • How to set up benefits plan
E: avisakay@axispointeinc.com to maximize ROI.
John Buckley • How to set up a wellness
Health Fairs Direct program to maximize your
P: (732) 563-9749 x 105 wellness budget and achieve
E: jbuckley@healthfairsdirect.com the greatest ROI.
Andrée Peart Laney, Esq. • For questions regarding
Bressler, Amery & Ross, P.C. legal compliance.
P: (973) 245-0686
E: alaney@bressler.com