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

2010 2011 2012 2013 2014

1

Health Care Reform Supports Wellness

The “law of the land” says health is not just about

reactive “sick care” – engagement is required.

Nursing mother

break time and

accommodations

required

• Calories to be posted in

chain (>20) restaurants

• Preventive screening co-

pays waived for employer

plans* and for Medicare

• Wellness program grants

to small businesses (<100

EEs) for wellness programs

National report on

effectiveness of

wellness programs

(after periodic surveys

and research)

National health promotion plan

Workplace health promotion effectiveness research

(plan sponsor tax of $1 per year per member, rising to $2)

• Health status-based

incentives may rise

from current 20% to

30%, and later, to 50%*

• Wellness program

demonstration

project in 10 states

* Applies to non-grandfathered plans

Childhood obesity demonstration project grants

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 2010www.BuckSurveys.com

2

Workplace wellness is:

• Global

• Growing rapidly

• Becoming a business imperative

3

Location of Employees

4

Africa/Middle East

Asia

Australia

Europe

North America

Latin America

19%

33 %

16 %

34 %

62%

35 %

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

Global Prevalence of Health Promotion Programs

5

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

Globalization of Strategy

6

STRATEGY IS GLOBAL*(MULTINATIONAL EMPLOYERS)

Yes

54%

No

46%

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

* Covers majority of employees regardless of geography

Status of Wellness Strategy

7

NUMBER OF YEARS WELLNESS STRATEGY HAS BEEN IN PLACE

0 - 1 year

2 - 5 years

5 - 10 years

More than 10 years

Don’t know

13%

53%

16%

14%

3%

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

Employer Objectives Driving Wellness Strategy

8

Africa/Mid East Asia Australia Canada Europe

Latin America

United 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

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

Direct Costs:Health Care

Indirect Costs:Productivity Loss

20%

80%

Cost Burden of Chronic Disease

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

10

Africa/Mid East Asia Australia Canada Europe

Latin America

United 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

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

Key Challenges:

• Motivating/engaging employees

• Measuring impact

• Fostering a “culture of health”

11

Prevalence of Incentive Rewards (or Penalties)

12

United States

Asia

Canada

Africa/Mid East

Australia

Europe

Latin America

62 %

42 %

41 %

34 %

29 %

25 %

16%

25%

19%

30%

24 %

24 %

11 %

38%

13%

39%

28%

41%

47%

63%

46%

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

Incentive rewards offered today

Not offered today, but have plans to offer

No plans to offer

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

13

Do Incentives Work?

EFFECTIVENESS OF INCENTIVE REWARDS AT INFLUENCING

BEHAVIORAL CHANGES AMONG EMPLOYEES

4%

15%

33%

24%

4%

20%

Extremely

Effective

5

Significantly

Effective

4

Moderately

Effective

3

Minimally

Effective

2

Not effective

1

Don’t know

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

Measurement and Outcomes

14

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

Measurement and Outcomes

15

REASONS OUTCOMES ARE NOT MEASURED

Insufficient resources to support measurement

Don’t know how to measure

No priority from leadership

Don’t believe there is a measurable return

Don’t believe the cost of measurement is justified

59 %

36%

33%

13%

9%

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

Healthcare Cost Trend Impact

16

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

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

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

Yes

18%

No

22%

Don't know

60 %

More than 10 trend percentage points per year

6-10 trend percentage points per year

2-5 trend percentage points per year

1 or less trend percentage points per year

2 %

10 %

61%

28 %

17

Building a “Culture of Health”

EXTENT TO WHICH THE

ORGANIZATION PLANS TO PURSUE A

CULTURE OF HEALTH FOR THE

FUTURE

54%

27%

12%6% 1%

5 =

Actively

pursue

4 3 2 1 = Not at

All

EXTENT TO WHICH THE

ORGANIZATION CURRENTLY HAS A

CULTURE OF HEALTH

10%

23%

37%

22%

8%

5 = Very

much so

4 3 2 1 = Not at

All

33%

81%

Thank You!

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

www.bucksurveys.com

www.buckconsultants.com