healthy advantage rewards

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


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)


• 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


$25 $50

Flu vaccination $25 $25


$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


Flu vaccination



Annual mammogram



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


$75

Flu vaccination $50



Annual mammogram



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.