Employee Wellness Programs ASSE Breakfast October 19, 2006

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Employee Wellness ProgramsASSE Breakfast October
19, 2006
Presented by Amanda Hess Business
Development Genesis Occupational Health
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Why are medical costs out of control?

• Technology
• Medicare/Medicaid Reimbursement
• Longer Life Spans/Aging Population (90yrs. by
  2050)
• In the year 2010, the proportion of the workforce
  greater than 54 years of age will equal the
  proportion under 25 years of age, i.e., 19
  percent. (April 18, 2002, Edward J. Bernacki, MD,
  President of the American College of Occupational
  and Environmental Medicine (ACOEM)
• Increases in Chronic Diseases

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Healthcare Costs

• We at HHS, and employers everywhere, recognize
  that poor health means lower productivity and
  higher health insurance costs. Government,
  businesses and especially individuals must do
  more to lead healthy lifestyles. Our physical
  health and our economic health depend on it.
• Tommy G. Thompson
• Secretary of Health and Human Services
• US Department of Health and Human Services
• Prevention Makes Common Cents (September 16,
  2003)

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Rising Chronic Diseases

• More than 1.7 million adults in the US die of
  chronic diseases every year - 70 of all deaths
  in the US are due to chronic conditions
• 5 major chronic diseases
• Heart disease
• Stroke
• Cancer
• Chronic Obstructive Pulmonary Diseases (COPD)
• Diabetes

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QC Health Initiative - 2002 Survey
www.qchealthinitiative.org

• Heart disease
• Leading cause of death in Scott County
• Higher average death rates than Iowa and the
  nation
• 1 in 4 adults in Scott RI have high blood
  pressure
• Cancer
• Second leading cause of death in Scott County
• Higher rates than the state and the nation
• 2/3 attributable to lifestyle- diet, tobacco,
  alcohol, sedentary
• Stroke
• Ranks third in causes of death locally
• Obesity
• Over 64 of adults in Scott RI are overweight
  or obese

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Diabetes Epidemic

• Diabetes Costs
• Healthcare costs due to diabetes rose by 98
  billion dollars from 1997 to 2002.

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Healthcare Costs

• Obesity-related Healthcare Costs
• (major contributor to musculo-skeletal
  injuries/conditions)
• TOTAL 13 billion in 1994
• 8 billion in health insurance costs
• 2.4 billion for sick leave
• 1.8 billion for life insurance
• 1 billion for disability insurance
• Direct and Indirect costs for overweight or obese
  individuals
• TOTAL 117 billion estimated for 2003
• Approx. 300,000 die in US each year due to weight
  -related illness
• U.S. Department of Health and Human Services,
  Prevention Makes Common Cents, Secretary
  Thompsons Latest Report to the Nation, September
  16, 2003.

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Healthcare Costs

• Diabetes (safety story - construction worker)
• 13, 243 per person vs. 2,650 per persons
  without Diabetes
• Medical expenditures were more than 2 times
  greater for those with Diabetes
• Diabetes, if untreated or undiagnosed, is a
  leading cause of blindness, kidney failure, heart
  disease, and stroke.
• U.S. Department of Health and Human Services,
  Prevention Makes Common Cents, Secretary
  Thompsons Latest Report to the Nation, September
  16, 2003.

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Healthcare Costs

• Tobacco Use (safety - lung disease - resp.
  wearers)
• Over 75 billion in direct medical costs
• 440,000 deaths each year
• Single most preventable cause of death and
  disease
• Heart Disease and Stroke (safety story - truck
  driver)
• Estimated 351 billion for 2003
• 209 - Direct 142 - Indirect
• 1 KILLER of men and women

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The Iceberg Direct Indirect Costs

• Direct Costs
• Medical Benefits
• Workers Compensation
• Short-term Disability
• Long-term Disability
• Absenteeism
• Outpatient
• Inpatient

• Indirect Costs
• Overtime
• Hiring/Training
• Lost Production
• Decreased
• Performance
• Decreased Morale
• Increased Error
• Rework

Wellmark, 2003
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Healthcare Costs Lost Time Local Estimates 2003

• Severe Cardiovascular Disease (One Heart Attack)
• Stress testing 359 physician fees
• Cardiolite Stress Rest Scans approx. 3,000
• Diagnostic Cardiac Catheterization approx.
  6,000
• Cardiac Catheter with Stent 25,000 or more
• Coronary Bypass 30,000 minimum
• Cardiac Rehab 2,300 for 36 session (12 weeks)
• Total Cost of One Heart Attack over 66,659
• Over 100,000 with physician fees and medications
• Lost time - 6 days inpatient w/12 week
  rehabilitation

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Healthcare Costs Lost Time Local Estimates 2003

• Preventable Costs - per person per year
• Diabetes - complications and treatments can cost
  well over 100,000 (dialysis for kidney failure
  50,000 per year)
• Cancer - radiation therapy costs 12,000 (not
  including radiologist fees) and includes 6 weeks
  of treatments, (chemotherapy is thousands to tens
  of thousands more)
• COPD (Chronic Obstructive Pulmonary Disease)-
  medications5,000-10,000 per year Pulmonary
  Rehabilitation (permanent maintenance) often
  leads to permanent disability
• Sleep Disorders - can lead to injuries at work
  decreased productivity

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Benefits of Employee WellnessThe Bottom Line

• Research indicates that comprehensive employee
  wellness programs can
• Improve employee morale and dedication
• Increase productivity
• Reduce absenteeism
• Improve employee recruitment and retention
• Allow greater control over health care costs
• Reduce healthcare utilization (injuries
  illnesses)

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Measuring Outcomes

• Tangible Benefits
• Reduced Health Care Utilization - long term (3-5
  years)
• Reduced Absenteeism due to illness - short long
  term
• HRAs - Self-Reported and/or Company Records
• Reduced and severity of risk factors - short
  long term
• Health Screens - Blood Pressure, Cholesterol,
  Body Fat etc.
• Steelcase Study 1980s tied reduced risk
  factors to reduced claim dollars.
• Intangible Benefits
• Increased morale - short long term
• Increased productivity - short long term
• Improved company image - short long term

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Case Studies

• Caterpillar - Healthy Balance Program
• projected long-term savings 700 million by yr.
  2015
• Motorola
• 41 ROI More then 45,000 employees - disease
  management, flu vaccinations, cancer and other
  screenings, smoking cessation telephonic nurse
  counseling
• Northeast Utilities - WellAware Program
• Employees spouses
• includes HRA follow-up initiatives
• reduced preventable (lifestyle-related) medical
  claims by 1.4 million in 24 months
• U.S. Department of Health and Human Services,
  Prevention Makes Common Cents, Secretary
  Thompsons Latest Report to the Nation, September
  16, 2003.

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Case Studies

• Bank of America
• 5.96/1 ROI
• Target Population - Retirees
• Methods - Health Risk Assessments, self-care
  guide books
• other educational materials
• Chapman, Larry, Proof Positive analysis of
  the Cost Effectiveness of Worksite Wellness,
  Summex Corporation, 1996.
• Pacific Bell FitWorks
• 3.10/1 ROI Reduced absenteeism by .8, saved
  2 million in one year Reduced days spent on
  short-term disability by an average of 3.3 days,
  which saved 4.7 million
• Blair, Susan, The FitWorks Savings Story,
  Pacific Bell, 1996.

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Case Studies

• DuPont
• 2 year study
• Blue Collar workers at participating sites
  enjoyed 14 reduction in disability days vs. a
  5.8 reduction at sites not participating in the
  comprehensive wellness program. Net reduction in
  disability days was 11,726.
• Bertera, R. The effects of Workplace health
  Promotion on Absenteeism and Employee Costs in a
  Large Industrial Population. American Journal of
  Public Health, September 1990 1101-1105.
• Other organizations with positive outcomes
• Steelcase, BankOne, Progressive Corp., Xerox,
  General Motors, Johnson Johnson, General Mills,
  Blue Cross/Blue Shield of Indiana

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Successful Programs Behavior Change

• Awareness
• Skill Building
• Social Support
• Environmental Support
• Follow-up/Maintenance
• Incentives, Evaluation, Modification

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How to begin... What to include...

• First Step Tool for program planning,
  evaluation outcomes measurement with Baseline
  Follow-up Data
• Health Risk Assessment (On-line On-site)
• On-site Health Screenings
• One-on-one Follow Up
• Ongoing Top-Of-Mind Awareness
• On-site On-line Educational Classes
• Self Care Programs
• Ongoing Builds Skills Promotes Action
• Fitness, Nutrition Tobacco Challenges
• Weight Management Programs
• Walking Programs

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Genesis Occupational Health WellPower Program

• Incentives
• Points Systems
• Three-month Cycles
• Monetary vs. Non-Monetary
• Seasonal Campaigns
• Tie In w/ Benefit Plans (e.g. Discounts on
  Contributions, Flex Spending Accounts)
• Tierd Programs (Offer Variety of Values...
  Participation vs. Meeting Goals Changing
  Behaviors)

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Things to Consider

• Comprehensive Programs (Address all stages of
  change levels of awareness)
• Confidentiality (Third party aids credibility,
  builds employee trust ensures confidentiality
  of PHI)
• On-site Services (Provide optimal convenience
  access for better participation)
• Follow Up (Entails customized education,
  referrals resources to assist manage high
  risk individuals)

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Thank you! Visit www.gohweb.com to learn
more!Proudly serving Illinois Iowa employers
for more then 18 years... Amanda HessBusiness
DevelopmentGenesis Occupational Health(563)
324-0696 ext. 307hessa_at_genesishealth.com