healthy advantage rewards
Post on 24-May-2015
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Healthy Advantage Rewards
Healthy Advantage Rewards Overview
• New value-added product from Security Health Plan that motivates your employees into taking the next step toward achieving a healthy lifestyle by completing certain healthy activities.
• Designed to help you reduce health care costs by keeping employees healthy.
unhealthy health chronic health care behavior risks disease costs
Healthy Advantage Rewards Overview
Employee completes specific healthy activity
Employee receives funding to use for paying for the deductible and/or coinsurance portions of their out-of-pocket health insurance costs
Employer incents specific healthy activities for their employees (Security Health Plan members) through a health reimbursement arrangement (HRA)
Healthy Advantage Rewards Overview
• Administered by Diversified Benefit Services, Inc. (DBS) through a health reimbursement arrangement
• Available July 1, 2009 for fully insured and self-funded groups
• Complies with HIPAA
• Employers determine incentive type, amount and eligible participants
Advantage to Employers
• Helps increase employee health, productivity and morale
• Helps make health care coverage more affordable to employer and employee
• Provides flexibility
Flexibility
1. Choose which incentives to offer
(List may be expanded as new administrative capabilities become available.)
Incentive
Life Focus health risk assessment
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
Flu vaccination
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
Research
Tobacco- Smokers are absent from work 6.5 days per year more than non-smokers. Approx. 8 percent of a smoker’s working hours are spent smoking.
Flu vaccination- adults age 65 and younger that have been vaccinated see a:- 34 to 44 percent reduction in
physician visits - 32 to 45 percent reduction in
lost work days - avg. annual savings of
$13.66/person
Cholesterol screening- 1 in 3 people will die of cholesterol-attributable coronary heart disease
Glucose- diabetes can set in as far as 10 years before symptoms appear. (approx. 1 in 5 people in the U.S. have pre-diabetes) - people who become diabetic
between age 40-49 lose 10 years of life
Flexibility
2. Choose funding amount Example:
Incentive Flat dollar amount
Varied amount (based on perceived value of incentive)
Life Focus health risk assessment $25 $50
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
$25 $50
Flu vaccination $25 $25
Participation in a disease management program
$25 $25
Annual preventive service exam $25 $25
Annual mammogram $25 $25
Cholesterol screening $25 $25
Fasting blood sugar (glucose) screening $25 $25
Flexibility
3. Designate primary and secondary incentives Example:
Incentive Primary incentive (must be completed before other healthy
activities are incented)
Secondary incentive
Life Focus health risk assessment
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
Flu vaccination
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
531430
9638
37543
0 100 200 300 400 500 600
HRA completion w/o incentive
HRA completion w/ incentive
DM program participation w/o incentive
DM program participation w/ incentive
Received flu shot w/o incentive
Received flu shot w/ incentive
Incentive Comparison (2007-2008)
Pilot Group
772% net increase
152% net increase
23% net increase
IncentivesEmployers must have:a. an incentive account with base
funding of at least the minimum incentive amount
Example: If the minimum incentive is $50 for the flu shot, the minimum base funding for the HRA needs to be $50.
Base funding• is separate from funding for
other incentives • activates incentive accounts• is available to employees after
the incentive account is open
b. electronic funds transfer arrangement with DBS
Incentive Amount
Life Focus health risk assessment $75
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
$75
Flu vaccination $50
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
Diversified Benefit Services, Inc. (DBS)
• A third party administration firm dedicated to excellence in employee reimbursement programs and other unique employee benefits. – Founded 1987, located in Hartland, WI
– Privately held company with 55 employees
• Specializes in design, communication, enrollment, compliance testing and third party administration of flexible spending accounts, health reimbursement arrangements, transportation plans, health savings accounts and premium only plans
Diversified Benefit Services, Inc. (DBS)
• Dedicated to providing exceptional customer service and educating participants on available benefit services
• Access to account information online through Advanced Strategic Administration Program (A.S.A.P.®)
– view claim and reimbursement information
Costs
• Diversified Benefit Services, Inc. will charge employers who enroll in the program:– set-up fee ($3.25 per insured employee- $90 minimum)
– $4.35 per contract (per insured employee), per month for administering the HRA ($90 minimum contract fee per month)
• No additional administration cost from Security Health Plan to employers or members
Cost SavingsWithout Healthy Advantage RewardsEmployer A- $250 deductibleEmployees 25Premium PEPM $ 880 (PEPM=per employee, per month)Monthly premium $ 22,000Annual premium $ 264,000
With Healthy Advantage Rewards-scenario 1
Employer A- $1250 HDHP deductible Employees 25Premium PEPM $ 720Monthly premium $ 18,000Annual premium $ 216,000Premium savings per year: $48,000
$625 HRA incentive account/subscriber: $15,625HRA set-up fee ($3.25/ee- $90 min) $ 90HRA account fee from DBS ($4.35): $ 1,305Total incentive account cost: $17,020Total potential savings after maximumincentive account funding: $30,980
With Healthy Advantage Rewards-scenario 2
Employer A- $1000 deductible, $25 office visit copayEmployees 25Premium PEPM $ 800Monthly premium $ 20,000Annual premium $ 240,000Premium savings per year: $ 24,000
$500 HRA incentive account/subscriber: $12,500HRA set-up fee (3.25/ee-$90 min) $ 90HRA account fee from DBS ($4.35): $ 1,305Total incentive account cost: $13,895Total potential savings after maximum incentive account funding: $10,105
Advantage for Members
• Members can use the money in their Healthy Advantage Rewards incentive account to cover deductible and/or coinsurance portions of their out-of-pocket expenses
• Online tracking– Security Health Online: track incentive completion status
– DBS portal: check status of deductible and/or coinsurance claim, monitor incentive reimbursement status
Advantage for Members
Thank you for learning more about
Healthy Advantage Rewards
Contact your independent insurance agent or the Security Health Plan Sales Department at 1-800-622-7790 to add this benefit to your coverage.
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