Ounce of Prevention Workshop San Antonio

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Ounce of Prevention Workshop- San Antonio
Beth Common Corporate Benefits Manager April 20,
2007
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Agenda

• Company Background
• Healthcare Landscape at H-E-B
• The Case for Wellness
• Healthy at HEB Program Details
• Performance Financial Results
• Questions Answers

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Company Background

• H-E-B was established in 1905 in Kerrville,
  Texas.
• H-E-B was started by a woman, Florence Butt, as a
  family business and is still owned by the family
  today.
• For over 100 years, H-E-B has been known as an
  innovative leader in the retail industry for our
  fresh food and quality products.
• We have 65,000 U.S. employee Partners in over 300
  Stores,11 Manufacturing, 3 Warehousing, and 5
  Transportation facilities.

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Company Background Cont

• H-E-B opened its first Mexico store in Monterrey,
  Mexico in 1997.
• Today, H-E-B has 21 stores in Mexico (15 in
  Monterrey alone) and employs approximately 4,000
  Socios (Partners).
• H-E-B proudly serves millions of customers in
  more than 150 communities throughout Texas and
  Mexico.

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Quick Glance at Benefits

• BC/BS PPOs
• 90/10 Co-Insurance w/ 300 or 500 Ded
• 80/20 Co-Insurance w/ 300 or 500 Ded
• 100 coverage for Preventative Care
• Limited HMO Offerings
• KelseyCare HMO-Houston
• Scott White HMO-Central Texas
• 3-Tier Prescription Drug Program- 5 Generic
  Co-pay
• EAP, Dental, Vision, Life, Disability

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Health Behavior and Financial Cost Population
Profile of H-E-B in 2006
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Impact of Lifestyle/Behavior on Health Care Costs

• According to Journal of Environmental and
  Occupational Medicine
• 70 of diseases are preventable
• CDC, CMS, and academic studies reveal the
  additional costs added to health care and/or
  productivity
• Obesity is 32
• Diabetes is 125
• Cancer (Neoplasms) is 150
• Musculoskeletal is 45
• Coronary Heart Disease/CHF is 350

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Impact of Risk Factors on Health Care Costs at
H-E-B
These results reflect our annual claims costs and
were derived by examining a study from Musich,
Edington, et al (2004) Am J of HP, Vol
18(3)264-268 and incorporating our own data.
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Key Health Messages

• H-E-B is shifting the focus from treating illness
  to preventing illness
• Partners need to take personal responsibility for
  their health
• It will mean improved health, better quality of
  life, lower health-related expenses
• We are in this together, H-E-B will provide the
  tools and resources and it is up to Partners and
  families to use them.

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We Believe in Wellness

• Our Partners are H-E-Bs most important asset.
• In order to improve the health and quality of
  life for our Partners and their families, it is
  important to provide resources and health
  education.
• Healthy Partners spend less on health care, are
  more productive, and will help to make the
  business stronger.
• This is a story about H-E-B following through on
  its slogan

Here Everythings Better
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Our Partner Wellness Program
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www.HealthyatHEB.com
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Sample Materials
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2007 Program Overview
1 Wellness Assessment 2 Healthy Action
Credits 2008 Deductible Credit

• Wellness Assessment
• Complete On-line once each year
• Available in both English and Spanish
• Healthy Action Credits
• Partners must complete and log 2 Healthy Actions
  each year

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2007 Healthy Actions

• Corporate Health Challenges (Spring Into Fitness
  and Take 5! Nutrition Challenge)
• Healthy Living Programs (Lifestyle Behavioral
  Health Programs)
• Disease/Chronic Care Management Programs
• 12 Online Wellness Seminars
• Participation in a physical activity at Community
  or Charity events, i.e. 5k, 10k, Half-Marathons
• Free annual physicals, vaccinations, flu shots,
  and worksite health screenings
• Special Beginnings Prenatal Program
• Weight Mgmt or Smoking Cessation Programs
• Becoming a Wellness Champion

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Corporate Health Challenges
6 Week Physical Activity Challenge Goal is to get
600 minutes of physical activity in 6 weeks!
4 Week Nutrition Challenge Goal is to eat 125
servings of fruits and vegetables in 4 weeks!
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Corporate Health Challenges(cont)
4 Week Weight Challenge Goal is to maintain
weight through the holiday season (earn points
for good behaviors, lose points for bad behaviors)
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Healthy Living Programs

• In 2007, there are 10 interactive, web based,
  Lifestyle and Behavioral health programs
  presented as 6-week modules.
• Topics include

• Easy Start
• Healthier Diet
• Weight Loss
• Get In Shape
• Stress Relief

• Healthy Aging
• Diabetes Fighting
• Cancer Fighting
• Healthy Heart
• Smoke-Free

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Healthy Living Programs
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Wellness Incentives

• Partners receive a deductible credit on their
  Medical Plan
• 200 - 600 credit based on how many dependents
  they cover
• Other Prizes include Free Health Care Premiums
  for one year, 500 toward fitness membership,
  iPods, and  25 Gift Cards

And the GRAND PRIZE! A TRIP FOR 5 (all
expenses paid for 5 daysand 4 nights in WALT
DISNEY WORLD FLORIDA!
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Wellness Champions

• Wellness champions are vital for our success
• In 2006 we had over 375 partner volunteers
• They are the heart and soul of the wellness
  initiatives at their work location
• They promote events distribute information
• Gather feedback, share success stories
• Recruit participants for all activities events

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Program Results
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2004-2006 Participation
2005 participation negatively affected by
Hurricane Rita
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Change in Percentage of Partners with Clinical
Risk Factors
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Change in Percentage of Partners with Lifestyle
Risk Factors
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Decline in Percentage of Partners with Multiple
Risks
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Are They Ready to Change?
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The Financial Results
HEB costs include Medical, Mental health, Rx,
Dental Claims and Administrative Costs National
Trend Source Kaiser Family Foundation Survey
on Employee Health Benefits
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H-E-B and a future Partner
Thank You!Q A
Beth Common common.beth_at_HEB.com