Wellness and Lifestyle:A Win, Win, Win

Iowa Health Buyers Alliance SeminarOctober 25, 2006

Kerry Juhl, Executive Director Wellness Council of Iowa

515.223.2910 Kerry@WellnessIowa.org

Optimal HealthOptimal Health

“Optimal health is a balance of emotional,

social, spiritual, physical and

intellectual health.”

“Optimal health is a balance of emotional,

social, spiritual, physical and

intellectual health.”

Source: American Journal of Health Promotion

The Wellness Continuum

How Healthy Are We?• About 108 million people in the United States have at

least one chronic disease such as heart disease, diabetes, asthma, hypertension, or osteoarthritis.

• Five chronic diseases (cancer, heart disease, stroke, chronic obstructive pulmonary disease and diabetes) cause more than 67% of all deaths each year

• Chronic disease is not just an issue among older adults... 33% of the years of potential life lost before age 65 is due to chronic disease

Why Wellness = Win, Win, Win!

Six Reasons

Reason #1: Our Citizens Are Not the

Healthiest• Almost 170 million Americans don’t get enough daily physical activity.

• Approximately 42 million Americans aren’t active at all.

• 64% of Americans are overweight or obese.• Tobacco use continues to be popular even though

a leading cause of death.• 75-90% of visits to primary care physicians are for

stress related conditions.

Most Costly Risk FactorsHealth Enhancement Research Organization (HERO)

(Percentage Differences In Average Annual Medical Expenditures For High-risk Vs. Lower-risk Employees.)

10.4

14.5

11.7

19.7

21.4

34.8

46.3

70.2Depression

High StressStress

High Blood Glucose

Weight

Former Tobacco

Current Tobacco

High Blood Pressure

No Exercise

The Case for Low-Risk Maintenance

“New evidence suggests that helping low-risk employees (the majority of any employee population) to maintain their low-risk health status has the potential to generate a major return on investment.”

D.W. Edington, PhDUniversity of Michigan Health Management Research Center

Reason #2: Much Illness is Preventable

• As much as 70% of illness and the associated costs are preventable.

• The leading causes of death in the U.S. are all related to lifestyle, yet little is spent on prevention: 95% of health expenditures are for evident illness.

• 400,000 deaths from smoking annually• 300,000 deaths from poor nutrition and inactivity• 100,000 deaths from alcohol related causes

“Each year in the U.S., 1.7 million people die of preventable chronic illnesses (like diabetes and

heart disease). There’s no bioterrorism attack that would ever be that devastating.”

Tommy G. ThompsonFormer Secretary, U.S. Health and Human Services

Reason #3: The Worksite is An Ideal

Setting• The majority of Americans work and spend

most of their waking hours at the worksite.• Employers have a vested interest in health-

related issues. They and their employees are the primary purchasers of healthcare.

• Opportunity to partner: medical costs consume both corporate profits and employee paychecks.

Strategy for Change

• “The purpose of worksite wellness is not to change people, but to change the culture.”

» D.W. Edington, University of Michigan

Reason #4: Wellness Works!

• There have been over 125 health enhancement research studies peer reviewed and published showing positive clinical, behavioral and/or ROI results.

Proof• Does program participation have value? YES

Participation has a significant impact on health risk for low and high risk employees (GM Lifestep, AJHP, 2001; J&J Pathways to Change, J Occup. Environ. Med., 2002)

• What happens when risk status changes? HEALTH CARE COSTS CHANGELargest increases in average cost occur when employees move from low to high risk, greatest reductions in average cost occur when employees move from high to low risk status (J Occup Med., 1997)

• Does participation affect disability days and absenteeism? YESThe more active participation, the greater the decrease in disability days (Dupont, AJHP, 2001) and absenteeism (HWP, AJHP, 2001)

Reason #5: More and More Employers Are

Doing It!• 90% of U.S. companies sponsor at least one

health promotion activity. • Innovative employers of all sizes and

industries are seeing the value of proactively managing employee health and productivity: Investing in Human Capital.

• Wellness links a benefits strategy with a business strategy.

Reason #6: Healthcare Costs Are (still) Causing

Concern• Health care expenditures topped $1.9 trillion (NCHC)

• Annual premiums for family coverage reached $10,880 in 2005, eclipsing the gross earnings for a full-time, minimum wage worker ($10,712) (HRET)

• By 2017, it is estimated an employer will pay more in health/benefits than for wages/salary. (NCHC)

• This year, Starbucks will pay more for employee health insurance than they do for coffee (Starbucks)

• Experts contend that the only long-term solution to managing costs is to keep people healthy.

A Window of Opportunity• The cost of health care is beyond what

employers can afford and will increase exponentially over the next decade.

• Employers don’t know what to do.

• An unprecedented opportunity to establish the importance and effectiveness of optimal health as an investment in human capital.

In Order To Improve Health And Contain Costs, Worksite Wellness Programs Need To Be Carefully Designed

How do you build ahealthy workforce?

• Results-Oriented vs. Activity-Centered– Activity-Centered: typically is short-lived and contributes little to

the bottom line– Results-Oriented: success lies in constructing a firm foundation

and making a long-term commitment

• Worksite health initiatives must be based on business outcomes

• Data collection is essential

www.welcoa.org 20

The Seven Benchmarks

1. Capturing Senior Level Support

2. Creating Cohesive Teams

3. Collecting Data

4. Crafting an Operating Plan

5. Choosing Appropriate Interventions

6. Creating Supportive Environments

7. Carefully Evaluating Outcomes

Well Workplace University© 2000 Wellness Councils of America

Why Senior Level Support?• It’s essential for the integration of health

promotion into the organization• It’s necessary to secure financial

resources• It’s instrumental in implementing

supportive corporate policies• It’s key to tying health promotion

objectives to business outcomes

• Benchmark #1

Role of The Wellness Team:

What does the wellness team do?• Establishes vision• Collects data• Determines goals & objectives• Sets realistic timelines & budgets• Communicates results• Oversees the wellness program

• Benchmark #2

Well Workplace University© 2000 Wellness Councils of America

Business Needs-Data• Demographic

Information• Health Risk

Appraisals• Health Screening

Data• Medical Claims

• Disability• Absenteeism• Facility Assessment• Culture Audits

• Benchmark #3

Why Plan?

• Forces you to consider your company’s needs, and strategic priorities

• Legitimizes and communicates your program to senior managers

• Gives your program continuity through personnel changes• Provides energy to get your program moving• Helps to stay focused. 

• Benchmark #4

How Much Will it Cost?

In health promotion, we often invest too little and expect too much.

“Investing $100-$150 per employee, per year can generate $300-$450 ROI”

Ron Goetzel, Director, Cornell University Institute for

Health and Productivity Studies

Most Frequently Addressed Programming Areas

• Smoking Cessation• Physical Activity• Nutrition/Weight

Control• Hypertension• Alcohol• Seatbelts• Mental Health

• Medical Self-care• Stress Management• Disease Management• Personal Finance• Immunization• Ergonomics• Work/Family

• Benchmark #5

Five big ideas for transforming your workplace into a supportive

environment:• Friendly facilities• Proactive policies• Consistent recognition and rewards

for success• Managers model and support

healthy behavior• Ongoing health promotion program

• Benchmark #6

Common Targets of Evaluation• Participation rates• Participant satisfaction • Knowledge and skills• Reduced risk factors• Absenteeism rates• Workers compensation claims• Health care claims• Turnover and ability to attract new

employees• Benchmark #7

•Increased participation rates from 62% to 98%

•Absenteeism rates 28% less for wellness participants vs. non-participants

•Tobacco use decreased from 21% to 8%

•Elevated cholesterol levels decreased from 50% to 37%

•Weight decreased from 66% being overweight to 41% overweight

www.welcoa.org 30

The Seven Benchmarks

1. Capturing Senior Level Support

2. Creating Cohesive Teams

3. Collecting Data

4. Crafting an Operating Plan

5. Choosing Appropriate Interventions

6. Creating Supportive Environments

7. Carefully Evaluating Outcomes

Be Healthy, Live LongerSteven Aldana, PH.D.

People Who Live an extra

Are vegetarian 1.5 years

Exercise regularly 2.4 years

Eat nuts five times a week 2.5 years

Have normal blood pressure 3.7 years

Are not diabetic 6.6 years

Maintain normal weight 11 years

8 Commandments for Living Long and Well (Dr. Edward T. Creagan, M.D.)

• Form stable long term relationships• Maintain ideal body weight• Eat a plant based diet• Engage in regular physical activity• Longevity does not allow for smoking• Use alcohol in moderation, if at all• Foster a sense of spirituality• Find meaning and purpose in life.

Wellness and Lifestyle: A Win, Win, Win

By investing in worksite wellness:• Employee WINS: reduced risk, healthier,

happier, longer lives• Employer WINS: increased work performance,

reduced health care utilization, moderation of costs, retention and recruitment

• Community WINS: reduced health risks, higher quality of life, economic impact

“The function of protecting and developing health must rank even above that of restoring it when it is impaired.”

Hippocrates