workplace wellness in the age of healthcare reform
DESCRIPTION
National Healthcare Reform Conference, Los Angeles, Sept 21, 2010TRANSCRIPT
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%