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Workplace Wellness in the Age of Healthcare Reform

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National Healthcare Reform Conference, Los Angeles, Sept 21, 2010

National Healthcare Reform Conference, Los Angeles, Sept 21, 2010

Published in: Health & Medicine

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  • 1. Workplace Wellness in the Age of Healthcare Reform Barry Hall, FSA National Healthcare Reform Conference Los Angeles September 21, 2010
  • 2. Health Care Reform Supports Wellness • Calories to be posted in chain (>20) restaurants • Health status-based • Preventive screening co- incentives may rise pays waived for employer National report on from current 20% to Nursing mother plans* and for Medicare effectiveness of 30%, and later, to 50%* break time and • Wellness program grants wellness programs • Wellness program accommodations to small businesses (<100 (after periodic surveys demonstration required EEs) for wellness programs and research) project in 10 states 2010 2011 2012 2013 2014 National health promotion plan Childhood obesity demonstration project grants Workplace health promotion effectiveness research (plan sponsor tax of $1 per year per member, rising to $2) The “law of the land” says health is not just about reactive “sick care” – engagement is required. * Applies to non-grandfathered plans 1
  • 3. 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 2010 www.BuckSurveys.com 2
  • 4. Workplace wellness is: • Global • Growing rapidly • Becoming a business imperative 3
  • 5. Location of Employees Africa/Middle East 19% Asia 33 % Australia 16 % Europe 34 % North America 62% Latin America 35 % Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 4
  • 6. Global Prevalence of Health Promotion Programs Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 5
  • 7. Globalization of Strategy STRATEGY IS GLOBAL* (MULTINATIONAL EMPLOYERS) No 46% Yes 54% * Covers majority of employees regardless of geography Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 6
  • 8. Status of Wellness Strategy NUMBER OF YEARS WELLNESS STRATEGY HAS BEEN IN PLACE 0 - 1 year 13% 2 - 5 years 53% 5 - 10 years 16% More than 10 years 14% Don’t know 3% Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 7
  • 9. Employer Objectives Driving Wellness Strategy Africa/ Latin United Mid East Asia Australia Canada Europe America 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 8
  • 10. Cost Burden of Chronic Disease Direct Costs: Health Care 20% 80% Indirect Costs: Productivity Loss Source: DeVol R, Bedroussian A, et al., An Unhealthy America: The Economic Burden of Chronic Disease. The Milken Institute. Oct. 2007. 9
  • 11. Health Issues Driving Wellness Strategy Africa/ Latin United Mid East Asia Australia Canada Europe America 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 10
  • 12. Key Challenges: • Motivating/engaging employees • Measuring impact • Fostering a “culture of health” 11
  • 13. Prevalence of Incentive Rewards (or Penalties) Incentive rewards offered today Not offered today, but have plans to offer No plans to offer United States 62 % 25% 13% Asia 42 % 19% 39% Canada 41 % 30% 28% Africa/Mid East 34 % 24 % 41% Australia 29 % 24 % 47% Europe 25 % 11 % 63% Latin America 16% 38% 46% 0% 20% 40% 60% 80% 100 % Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 12
  • 14. Do Incentives Work? EFFECTIVENESS OF INCENTIVE REWARDS AT INFLUENCING BEHAVIORAL CHANGES AMONG EMPLOYEES 33% 24% 20% 15% 4% 4% Extremely Significantly Moderately Minimally Not effective Don’t know Effective Effective Effective Effective 5 4 3 2 1 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 13
  • 15. Measurement and Outcomes Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 14
  • 16. Measurement and Outcomes REASONS OUTCOMES ARE NOT MEASURED Insufficient resources to support measurement 59 % Don’t know how to measure 36% No priority from leadership 33% Don’t believe there is a measurable return 13% Don’t believe the cost of measurement is justified 9% Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 15
  • 17. Healthcare Cost Trend Impact REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS Yes 18% Don't know 60 % No 22% AVERAGE ANNUAL REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS More than 10 trend percentage points per year 2% 6-10 trend percentage points per year 10 % 2-5 trend percentage points per year 61% 1 or less trend percentage points per year 28 % Preliminary (pre-publication) results from 2010 Global Health Promotion Survey 16
  • 18. Building a “Culture of Health” EXTENT TO WHICH THE ORGANIZATION CURRENTLY HAS A CULTURE OF HEALTH 37% 23% 22% EXTENT TO WHICH THE 10% 8% ORGANIZATION PLANS TO PURSUE A CULTURE OF HEALTH FOR THE FUTURE 5 = Very 4 3 2 1 = Not at much so All 54% 27% 33% 12% 6% 1% 5= 4 3 2 1 = Not at Actively All pursue 81% 17
  • 19. Thank You! Barry Hall, FSA +1.617.275.8033 Barry.Hall@BuckConsultants.com www.bucksurveys.com www.buckconsultants.com

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