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Getting Beyond No: A Case Study On How A Local Company Went From C-Suite Resistance To Full Engagement
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Getting Beyond No: A Case Study On How A Local Company Went From C-Suite Resistance To Full Engagement

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For more slides from the San Diego 2012 Corporate Wellness Symposium visit, www.intercaresolutions.com/cws/slidelibrary

For more slides from the San Diego 2012 Corporate Wellness Symposium visit, www.intercaresolutions.com/cws/slidelibrary

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  • 1. Our Wellness JourneyVeronica Meyers, SPHR – VP of Human ResourcesRobin Weiss, CCP – Sr. Benefit Administrator
  • 2. Our CompanyICW Group• Privately-held multi-line insurance carrier primarily in property and casualty• Founded in 1972 • Workers’ Compensation • Differences in Condition (Earthquake) • AM Best Rating A- • Private Passenger Auto – niche (Excellent) • Surety Claims Management • Insurance Journal’s• Member Companies 2011 Super Regional • Insurance Company of the West P/C Insurer • Explorer Insurance Company • 2011 San Diego’s • Independence Casualty and Surety Company Healthiest Companies• Premium volume $400M• 500 employees• Operations in CA, NV, FL, IL, WA – have remote team members in other states• Products sold through network of 1,500+ independent agents and brokersWellness Journey Page 2
  • 3. Our Exploration PartyWellness Journey Page 3
  • 4. Veronica 5 years as Chief HR Officer for ICW group • Most recent prior experience at Fortune 500 companies • HR Operations, Compensation, Project Management • Over 35 years as HR practitioner; multiple industries, geographies and company sizes; 9 years teaching at San Diego State University • Worked in health care as both internal and external consultant • Lots of Benefits exposure – no direct Benefits responsibility prior to current positionWellness Journey Page 4
  • 5. Robin 4 years as Sr. Benefits Administrator ICW group • 25 years in HR with emphasis in benefits, compensation, HRIS and wellness • Worked in a variety of companies – manufacturing, retail, distribution • Served on the board of the local Compensation & Benefits Association chapterWellness Journey Page 5
  • 6. 2008 • Employee medical costs are 5.5% of our operating expenses • Since 2002, cost of medical coverage increased 68% • 11.2% increase projected for 2009 Wellness Journey Page 6
  • 7. We did a survey!!! Findings 53% response rate • Slightly over half were satisfied with their medical coverage • Employees wanted more education and information about Benefits • 73.2% would consider taking a Health Risk Assessment • Employees would like support for • 53.3% - healthy eating; • 53.0% - better exercise program • 48.7% - losing weight; • 43.2% - better stress management Wellness Journey Page 7
  • 8. We built a strategy!!!GOAL--Attract and retain a healthy workforce to reduce costsand improve productivity. – Healthier You -- 2009• Competitive and cost effective• Partnership with employees• Largest consumers of health care services should bear the majority impact of increased medical costs• Drive participation and engagement in personal health management• Multi-layered program of education, health assessments, personal accountability for health management and incentives• Design medical plan benefits to incent proactive disease management and preventive strategies.Wellness Journey Page 8
  • 9. We built a plan...well, not quite! What stopped us? CEO questions... • Are we in the “wellness” business? • Couldn’t we get the same results without spending $$ on Biometrics/HRAs? We have Claims Data. • We have consistently had major claims factor into our experience – how can we control forWellness Journey premature babies or cancer? 9 Page
  • 10. What helped us? • Executive Education throughout the year • Personal commitment to fitnessIn 2009 - we tried again • Insurance background – presented in terms of risk management • A “cost-neutral” strategy – differential contribution/incentive strategy whereby the non- participants contributions covered the HRA and Biometrics Costs Wellness Journey Page 10
  • 11. Our Cost Neutral Approach Over the past two years, we have gradually shiftedCurrent 2009 Total Premiums: our overall contribution strategy to fund the cost of a Share Percent wellness approach with most of the cost shift toCompany Paid $3,685,235 77.14%Employee Paid $1,091,911 22.86% employees who elect dependent coverage where weTotal $4,777,146 were below benchmark employee share of cost.2010 Premiums: - 8.23% increase - use same percent breakdown as 2009 Net increase to ICW Increase from Group in 2010 without Share Percent 2009 Rates implementing HRAsCompany Paid $3,988,644 77.14% $303,409Employee Paid $1,181,809 22.86% $89,898Total $5,170,453 $393,3072010 Premiums: HRA/Biometric breakeven point - 8.23% increase - variance in rates due to participation in HRA is at 11% (65) non-participants. Increase from Increase fromHRA Participation: 100% 2009 Rates Share Percent 75% 2009 Rates Share PercentCompany Paid Premiums $3,925,617 $240,382 75.92% $3,842,217 $156,982 74.31%Employee Paid $1,244,836 $152,925 24.08% $1,328,236 $236,325 25.69%Total $5,170,453 $393,307 $5,170,453 $393,307Company Paid HRA $55,600 $295,982 $42,256 $199,238Grand Total $5,226,053 $5,212,709 Net increase to ICW GroupCo. savings over standard $63,027 $146,427 in 2010 implementing HRAsCompany Paid HRA $55,600 $42,256 and having 100%(Company savings offsets HRA costs even when 100% of employees participate) participation. Still lower than net increase f rom above. Wellness Journey Page 11
  • 12. 2009 – We Built a Multi Year Plan! 2013 & Beyond: Employee & Spouse Biometrics & Health Risk Assessment Reduced Medical Premiums and/or richer plan designs for those who participate, participation in wellness programs for high risk individuals, proven compliance of disease management. Individual results to participant; aggregate results to ICW with comparison to previous years 2012: Employee & Spouse Biometrics & Health Risk Assessment; Active Participation Reduced Medical Premiums and/or richer plan designs for those who participate and participation in wellness programs for high risk individuals. Individual results to participant; aggregate results to ICW with comparison to previous years 2011: Employee & Spouse Biometrics & Health Risk Assessment Reduced Medical Premiums and/or richer plan designs for those who participate. Individual results to participant; aggregate results to ICW with comparison to 2010 data2010: Employee Biometrics & Health Risk AssessmentReduced Medical Premiums for those who participate.Individual results to employee; aggregate results to ICWWellness Journey Page 12
  • 13. We Developed Our Tactics for 2010• HIPO hand-selected • $25 per payroll leader period discount• Empowerment by CEO Active Wellness Committee Incentive Contribution ($600/year) for Strategy• Small Budget for participation activities, contests, etc.• Aggregate data from HRA to work from Education, Communication HRA/Biometrics and Support• Partnered with vendor • “Roadtrip”• On-site wherever • Dedicated Web Pages possible • Access to fitness• Detailed communication programs Wellness Journey Page 13
  • 14. We Faced Some Challenges… • Ridiculously short time frame <2 months • 17 office locations – most 2-5 employees • Medical Plan design changes occurring simultaneously • Implemented a new Benefits System for Open EnrollmentWellness Journey Page 14
  • 15. And Had Some Great Results for 2010!• HRA/Biometric screening – 74% participation• Wellness Committee formed & Operating Plan established – On-site Weight Watchers Meetings – 182 lbs lost – Walking and Running Clubs; Boot Camp training – Health Topic of the Month on iPortal - 57 hits – Discounts to gyms and fitness centers – Vending changes for healthier optionsWellness Journey Page 15
  • 16. We Refined Our Tactics for 2011 • $25 per payroll• HIPO hand-selected period discount leader ($600/year) for• Empowerment by CEO participation• Slightly larger budget for Incentive Contribution • Added monthly activities, contests, etc. Active Wellness Committee Strategy Employer Funding to• Aggregate YOY data PPO H.S.A. Plan from HRA to work from Education, Communication and Support • Newsletter HRA/Biometrics • Emphasis placed on PPO H.S.A. Plan • Lunch (comp) and• Refined process Learns• Communication • Department competitions • Executive-Led Run Wellness Journey Page 16
  • 17. We Hit Pay Dirt in 2011!• Recognized as one of Healthiest Companies in San Diego• Significant progress in lowering several risk factors: • HDL “good” cholesterol • Blood Pressure • Waist Circumference• Over 55% employees participated in Pedometer Challenge• 2012 Rate Quote ReductionWellness Journey Page 17
  • 18. Sidebar! Another CEO Challenge• 2012 Rate Quote Reduction – Two carriers in a “bidding war” for our business • Current carrier had less in overall savings but no disruption in coverage to employees • Carrier “A” offered the greatest savings if we eliminated the HMO outside of CA and moved CA HMO members into a restricted network • Would also cause us to reformulate our benefits strategy in offering plans that most align with Health Care ReformWellness Journey Page 18
  • 19. Sidebar! Another CEO ChallengeWellness Journey Page 19
  • 20. Sidebar! Another CEO ChallengeWellness Journey Page 20
  • 21. We Modified our Plan for 2012 2013: Employee Biometrics & Health Risk Assessment; PPO H.S.A. Exclusive Plan; Outcomes Based Incentives Reduced Medical Premiums and increased employer funding in savings accounts for those who participate AND meet standards relative to health metrics. Evaluate the HMO plan for possible replacement with HRA plan; continue emphasis & education on the PPO H.S.A. Plan. 2012: Employee Biometrics & Health Risk Assessment; Continued PPO H.S.A. Emphasis; Introduce Outcomes Based Incentives Reduced Medical Premiums for those who participate with aggregate results to ICW with comparison to previous years. Eliminate the standard PPO plan with continued emphasis & education on PPO H.S.A. Introduce and communicate outcomes based incentives for specific biometric results. 2011: Employee Biometrics & Health Risk Assessment Plus PPO H.S.A. Emphasis and Communication Reduced Medical Premiums for those who participate. Aggregate results to ICW with comparison to 2010 data. Emphasize PPO H.S.A. during Open Enrollment with year long communications program.2010: Employee Biometrics & Health Risk AssessmentReduced Medical Premiums for those who participate.Individual results to employee; aggregate results to ICWWellness Journey Page 21
  • 22. We Expanded Our Tactics for 2012 • $25 per payroll• HIPO hand-selected period discount leader ($600/year) for• Empowerment by CEO participation• Much larger Budget for Active Wellness Committee Incentive Contribution • Changed PPO H.S.A. activities, contests, etc. Strategy funding to front load• Aggregate YOY data each quarter from HRA to work from • Newsletter Education, Communication • Lunch (comp) and and Support HRA/Biometrics Learns • Department competitions • Menu of Activities • Accepted process • Manager Wellness • Communication Goal Wellness Journey Page 22
  • 23. We Expanded Our Tactics for 2012Manager Wellness GoalEstablish and maintain a cultureof Wellness within your work unitas demonstrated by:• Promotion of active participation by team members in Wellness programs;• Appropriate stewardship of Company funds in purchasing food and beverages for • Full menu of activities and department functions; education with more incentives• Management of your immediate work environment that displays a • Increased penetration into our commitment to healthy behaviors. culture Wellness Journey Page 23
  • 24. We Expanded Our Tactics for 2012Budget Year 1: Biometric Screenings $26,000 Onsite for 94% of employees Online Wellness Portal for HRA $17,000 One year access for employees Year 2: Biometric Screenings $22,000 Onsite for 97% of employees Online Wellness Portal for HRA $17,000 One year access for employees Programs $7,500 Pedometers, Lunch & Learns, etc. Prizes and giveaways $1,500 Gift cards, water bottles, etc. Year 3: Biometric Screenings $25,000 Onsite for 97% of employees Online Wellness Portal for HRA $9,000 One year access for employees Programs $4,150 YTD Biggest Loser, Fun Runs, etc. Prizes and giveaways $875 YTD Gift cards, water bottles, etc.Wellness Journey Page 24
  • 25. What’s Ahead for 20132013: Employee Biometrics & Health Risk Assessment; PPO H.S.A. Exclusive Plan; Outcomes Based IncentivesReduced Medical Premiums and increased employer funding in savings accounts for those who participate AND meetstandards relative to health metrics. Evaluate the HMO plan for possible replacement with HRA plan; continueemphasis & education on the PPO H.S.A. Plan. • Outcomes/Results Based Introduction • Current RFP for Vendors • 2013 Baseline Measure • Significant Education • Preparation of Results Incentive Strategy • Evaluation of Current Plan Designs • HMO, PPO/H.S.A • Possible HRA addition • HMO Plan Evaluation • More Accountability • Manager Goal Assessment Wellness Journey Page 25
  • 26. Why It’s Working for UsVision Leadership“Our Wellness Vision is to create an environmentof positive choices where ICW Group teammembers are able to reach their full potential interms of health and well-being.The 2010 benefits wellness initiative supports theorganization’s culture, core values and objectivesby establishing and providing high-quality, cost-effective benefit programs that educate andempower our team members to establish andmaintain healthier lifestyles.To provide a benefits program that encourages apositive culture that is focused on celebrating andimproving the quality of life for all employees” - Kevin Prior, CEO Fall 2009 Partnership Wellness Journey Page 26
  • 27. The Finish Line Questions?Wellness Journey Page 27