Challenges Todays Corporations Face

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Challenges Todays Corporations Face Employers
Care About Employee Health
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In this session

• Challenges Todays Corporations Face
• Landscape today
• Pressures on Corporate America
• Corporate Response
• Creating Workplace Wellness

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Landscape TodayMounting Costs and Concern
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Landscape TodayImprove Health Costs
At Dow, our analysis shows that prevention can
improve both our direct and indirect
health-related costs. Our profit potential is
inextricably linked to the capability and
performance of our employees.
Andrew N. Liveris, President and CEO The Dow
Chemical Company
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Pressures on Corporate AmericaStatistics

• 60 of Business Roundtable CEOs cited healthcare
  costs as their number one cost pressure for the
  second year in a row
• In 2000, employee healthcare costs represented
  40 of pretax profits
• Productivity losses related to health problems
  cost U.S. employers an estimated 225.8 billion
  annually
• Almost half of 1,400 chief financial officers
  surveyed said they expected healthcare costs to
  account for the biggest increase in the costs of
  doing business in the next 12 months
• Starbucks will spend more on health insurance for
  its employees this year than on raw materials
  needed to brew its coffee
• Obesity costs American companies 12.7 billion
  each year
• An overweight employee annually costs their
  employer an additional 450 to 2,500 in
  medical expenses and absences.

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Pressures on Corporate AmericaCompetition In a
Global Economy
The fact is the soaring cost of health care in
America cannot be sustained over the long term by
any business that offers health benefits to its
employees. And every day that we do not work
together to solve this challenge is a day that
our country becomes less competitive in the
global economy.
Lee Scott President and CEO Wal-Mart
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Pressures on Corporate AmericaStatistics

• Americans now work 164 more hours per year than
  20 years ago.
• People are becoming less active due to advances
  in automated transportation, technology at home
  and more passive life pursuits.
• The average annual healthcare cost per person in
  the U.S. exceeds 3,000
• 33 of adults under 65 with household incomes of
  less than 75,000 report not having enough money
  to pay for medical costs
• It does not have to be this way
• Preventable illnesses make up approximately 70
  of the entire burden of illness and associated
  costs in the U.S.
• At least 25 of healthcare costs incurred by
  working adults are attributed to modifiable
  health risks such as diet and exercise.

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Corporate ResponseCreating Workplace Wellness
The following chart represents trends in
corporate response to the rising cost of
healthcare
Consumer Driven Health Plans
Wellness Programs
Cost - Shifting
Public Policy

• Employees pay higher deductibles, premiums and
  co-payment fees
• 62 of large employers said they would keep costs
  down by shifting increases to employees
• Doesnt contain costs and alienates employees and
  unions

• 33 of companies said that they are placing a
  greater emphasis on improving employee health
  through wellness programs and 33 are considering
  it.
• Incentives
• Onsite Screenings
• Employee Assistance Programs
• Online, interactive tools
• Communications i.e. newsletter
• Healthy vending machine choices

• Lobby lawmakers to impact legislation to control
  healthcare costs

• High-deductible medical plan coupled with an
  employer-funded reimbursement account for each
  employee
• Intended to encourage more cost-conscious
  personal healthcare decisions
• Account for about 2 of all healthcare coverage
  in the U.S.

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Corporate ResponseMakes good business sense
We believe that programs that help reduce health
risks can yield valuable benefits. It is clear
that encouraging a healthy lifestyle makes good
business sense.
John Rowe, MD Chairman Aetna, Inc.
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Case for Workplace Wellness Today

• On average, companies report a 3.50-to-1
  savings-to-cost-ratio in reduced absenteeism and
  healthcare costs
• Reducing just one health risk increases a
  persons productivity on the job by 9 and
  reduces absenteeism by 2
• An organization saves approximately 350 per
  employee per year by keeping healthy employees at
  low risk
• 79 of employees think companies should encourage
  healthy lifestyles
• 80 of executives believe that corporations have
  a responsibility to promote wellness among
  employees
• Number of working Americans who get no exercise
  is 2 times higher among those who have no access
  to workplace fitness programs

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Creating Workplace WellnessCant do it alone
Like most corporations, Xerox is too familiar
with the specter of ever-increasing health care
costs. But companies cant solve the problem
alone. We believe continued education will
ultimately translate to lower costs for us all
and better health for our people.
Anne M Mulcahy Chairman and CEO Xerox Corporation
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• Inactivity Is The Problem.
• So Whats The Solution?

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• The Start! movement is here to motivate and
  encourage all Americans to take up walking and
  other healthy habits as part of their daily
  routine all year around, and to live longer,
  stronger heart-healthy lives.

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The Start! Movement
Start!
The Movement
The Goals
Increase Physical Activity to Prevent Heart
Disease and Stroke in Americans
Start! has the tools to help employers make
employee wellness a priority.
Start! Fit-Friendly Companies
MyStart! Online Tracking Tool
Start! Heart Walk
Employer Tools
Start! Walking at Work Day
CEO Events
Start! Walking Program
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MyStart! Online

• MyStart! Online is a online fitness and nutrition
  program that allows your employees to
  track their daily activities
• Track physical activity such as walking, biking,
  etc.
• Track daily caloric intake
• Daily tips and weekly articles
• Recipes
• Monthly newsletters

MyStart! Online Tracking Tool
Start! Walking Program

• Through our Start! Walking Program, your company
  can setup walking routes around the workplace.
• Employees can take breaks alone or with walking
  buddies to walk the route.
• Different routes for different needs
• Outdoor, indoor, physically challenging
• Tracking tools for your employees
• Celebration events, and Lifestyle Change Awards
  to help your employees stay motivated

Start! Walking Program
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Start! Heart Walk

• Start! Heart Walk is the American Heart
  Associations signature fundraiser
  currently in over 450 cities nationwide.
• Employers can create company teams that walk
  at the event and raise funds
  for research.
• Surveys show that over 90 percent of employees
  feel proud of companies that support
  an important outside cause
• Supporting the Heart Walk can help enhance
  community relations
• Giving back to the community can also boost
  productivity, employee morale, job satisfaction
  and loyalty

Start! Heart Walk
Start! CEO Events

• Start! CEO Events are local events that bring
  leadership of local employers
  together in order to show support
  of the Start! movement.
• Leaders can learn more about the Start! movement
  and all the ways to use it for the
  company.
• Leaders can learn how to become local sponsors
  of the movement and the local
  Start! Heart Walk.

CEO Events
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Start! Walking at Work Day April 25, 2007
Join others across the nation as they wear their
sneakers to work on April 25, 2007 and pledge to
start a healthier lifestyle as part of this
annual event. Bringing start! Walking At Work
Day to your workplace is easy. All you have to do
is Get your senior leaders involved. Having
key leaders participate sends a clear signal to
staff that your organization supports start!.
Save the date. Reserve time on your senior
leaders calendars on April 25. Did you know that
you could gain two hours of life expectancy for
every hour of regular, vigorous exercise? Hosting
your walk or rally at 241 highlights that fact
and provides a much needed afternoon break!
Spread the word. Promote your start! Walking At
Work Day using posters in the workplace, contests
and interactive activities. Our Start! Walking At
Work Day packet will give you the tools you need.
Contact your local American Heart Association
representative on how to get your packet.
Start! Walking at Work Day
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Start! Fit-Friendly Companies Recognition Program
Start! Fit-Friendly Companies

• The American Heart Association is recognizing
  employers who champion the health of their
  employees and work to create a culture of
  physical activity and health in the workplace.
• Companies who are recognized receive immediate
  benefits such as
• Consultation on CPR/AED (automated external
  defibrillator) programs
• Recognition on the American Heart Associations
  program Web site
• Local-level recognition by the American Heart
  Association at local events and in communication
  materials supporting the recognition program
• The right to use the programs annual recognition
  seal for internal communications to employees
  (e.g., intranet company newsletters, break room
  posters) and external communications related
  specifically to recruitment (e.g., employment
  section of the company Web site, recruiting tools
  for job fairs)
• An official recognition letter sent by the
  American Heart Association
• A recognition plaque to display at the worksite

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• To learn more about the Start! movement,
  visit the Web site at www.americanheart.org/start
• Or
• Get help from our local representatives by going
  to www.americanheart.org and using our zip code
  finder to locate the office closest to you.