Corporate WellnessProgramming To MaximizeReturn On Investment (ROI)

Presented by: Aida Visakay, Employee Benefit Advisor

John Buckley, Corporate Wellness SpecialistAndrée Laney, Employment Law Attorney

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 & RossEmployment Law Attorney in firm’s Florham Park, NJ Office; counsels businesses on legal issues from recruitment through termination.

Why Wellness as a Business Strategy?

• Reduce Medical Cost• Increase Performance• Reduce Absenteeism• Increase Presenteeism• Brand Company

Where Do Your Dollars Go?

What can you control?

How are you going to control it?

80%

20%

Cost of Chronic DiseasesPer 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

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 nutrition, exercise, and weight management 33%

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

Impact of Weight onChronic Diseases

15% increased risk of the following chronic diseases:• Diabetes• Heart Disease• Respiratory• Cancer

Wellness Options by Cost & ROI

Service• Insurance Companies• In-House• Health Fair• Online Wellness Portal• Flu Vaccinations• Biometric Screenings• Coaching

Least Expensive

MostExpensive

ROI??

2.517.52.514.754.5

Best Value

Case StudiesUsing 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.

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• 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

The Basic Goals forAchieving Positive ROI with Wellness:

Organize Wellness AroundOnline Wellness Tracker

Provide a Central Platform To Organize YourYear-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.

Step 1Full Service Wellness Events

Health Fairs1. HRA/Medical Screenings -

Create Need for Change

2. Local Exhibitors Resources –Handle Issues

3. Flu Vaccinations - Standard Protection

4. Wellness Related Promotional Items –

Rewards & Incentives to Participate

Step 2Receive 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.

Step 3Implement 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.

Step 4Implement 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• Reduced Cost to Health Clubs• Prizes

All health and wellness activities are not created equal from an ROI standpoint.

Careful Planning and Execution are Critical to achieve a Positive ROI.

STEP 5REPEAT EVERY 4 TO 6 MONTHS

Remember:The goal is to encourageindividual 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 basedon your company’s culture.

Remember

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.

Health Care Reform (PPACA)

Stay Tuned Future of Act uncertain.

Be prepared to be compliant.

Impact on Employers• $200 million worth of grants tosmall businesses for wellness programs.

• Must provide free preventive care.

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.

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.

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.

ERISA: Mandatory Programs

• Applies to wellness programs that provide or pay for medical care.

• Prohibits interfering with employees’ rights under employee benefit plans.

Other Laws To Consider

• Title VII• ADEA/OWBPA• FMLA• FLSA• NLRB• Workers Compensation• Lawful off-duty conduct protections• State anti-discrimination laws

Questions??Aida G. Visakay, CEO, CFPAxisPointe, Employee Benefit AdvisorsP: (973) 299-0022E: avisakay@axispointeinc.com

John BuckleyHealth Fairs DirectP: (732) 563-9749 x 105E: jbuckley@healthfairsdirect.com

Andrée Peart Laney, Esq.Bressler, Amery & Ross, P.C.P: (973) 245-0686E: alaney@bressler.com

Contact us for:

• How to set up benefits plan to maximize ROI.

• How to set up a wellness program to maximize your wellness budget and achieve the greatest ROI.

• For questions regarding legal compliance.