Healthy Advantage Rewards

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Healthy Advantage Rewards is a new wellness product offered to employers through Security Health Plan. Visit www.securityhealth.org/healthyrewards for more information.

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Healthy Advantage Rewards

  1. 1. Healthy Advantage Rewards
  2. 2. Healthy Advantage Rewards Overview <ul><li>New value-added product from Security Health Plan that motivates your employees into taking the next step toward achieving a healthy lifestyle by completing certain healthy activities. </li></ul><ul><li>Designed to help you reduce health care costs by keeping employees healthy. </li></ul>unhealthy health chronic health care behavior risks disease costs
  3. 3. Healthy Advantage Rewards Overview Employee completes specific healthy activity Employee receives funding to use for paying for the deductible and/or coinsurance portions of their out-of-pocket health insurance costs Employer incents specific healthy activities for their employees (Security Health Plan members) through a health reimbursement arrangement (HRA)
  4. 4. Healthy Advantage Rewards Overview <ul><li>Administered by Diversified Benefit Services, Inc. (DBS) through a health reimbursement arrangement </li></ul><ul><li>Available July 1, 2009 for fully insured and self-funded groups </li></ul><ul><li>Complies with HIPAA </li></ul><ul><li>Employers determine incentive type, amount and eligible participants </li></ul>
  5. 5. Advantage to Employers <ul><li>Helps increase employee health, productivity and morale </li></ul><ul><li>Helps make health care coverage more affordable to employer and employee </li></ul><ul><li>Provides flexibility </li></ul>
  6. 6. Flexibility 1. Choose which incentives to offer (List may be expanded as new administrative capabilities become available.) Annual mammogram Incentive Fasting blood sugar (glucose) screening Cholesterol screening Annual preventive service exam Participation in a disease management program Flu vaccination Non-tobacco user or completion of the Wisconsin Tobacco Quit Line Life Focus health risk assessment
  7. 7. Research <ul><li>T obacco- Smokers are absent from work 6.5 days per year more than non-smokers. Approx. 8 percent of a smoker’s working hours are spent smoking. </li></ul><ul><li>F lu vaccination- adults age 65 and younger that have been vaccinated see a: </li></ul><ul><li>- 34 to 44 percent reduction in </li></ul><ul><li>physician visits </li></ul><ul><li>- 32 to 45 percent reduction in </li></ul><ul><li>lost work days </li></ul><ul><li>- avg. annual savings of </li></ul><ul><li>$13.66/person </li></ul><ul><li>C holesterol screening- 1 in 3 people will die of cholesterol-attributable coronary heart disease </li></ul><ul><li>G lucose- diabetes can set in as far as 10 years before symptoms appear. (approx. 1 in 5 people in the U.S. have pre-diabetes) </li></ul><ul><li>- people who become diabetic </li></ul><ul><li>between age 40-49 lose 10 </li></ul><ul><li>years of life </li></ul>
  8. 8. Flexibility <ul><li>2. Choose funding amount </li></ul><ul><li>Example: </li></ul>$25 $25 Annual mammogram Varied amount ( based on perceived value of incentive ) Flat dollar amount Incentive Fasting blood sugar (glucose) screening Cholesterol screening Annual preventive service exam Participation in a disease management program Flu vaccination Non-tobacco user or completion of the Wisconsin Tobacco Quit Line Life Focus health risk assessment $25 $25 $25 $25 $25 $50 $50 $25 $25 $25 $25 $25 $25 $25
  9. 9. Flexibility <ul><li>3. Designate primary and secondary incentives </li></ul><ul><li>Example: </li></ul> Annual mammogram  Primary incentive (must be completed before other healthy activities are incented) Secondary incentive Incentive Fasting blood sugar (glucose) screening Cholesterol screening Annual preventive service exam Participation in a disease management program Flu vaccination Non-tobacco user or completion of the Wisconsin Tobacco Quit Line Life Focus health risk assessment      
  10. 10. Pilot Group 772% net increase 152% net increase 23% net increase
  11. 12. Incentives <ul><li>Employers must have: </li></ul><ul><li>an incentive account with base funding of at least the minimum incentive amount </li></ul><ul><ul><li>Example: If the minimum incentive is $50 for the flu shot, the minimum base funding for the HRA needs to be $50. </li></ul></ul><ul><ul><li>Base funding </li></ul></ul><ul><ul><li>is separate from funding for other incentives </li></ul></ul><ul><ul><li>activates incentive accounts </li></ul></ul><ul><ul><li>is available to employees after the incentive account is open </li></ul></ul><ul><li>electronic funds transfer arrangement with DBS </li></ul>Annual mammogram Amount Incentive Fasting blood sugar (glucose) screening Cholesterol screening Annual preventive service exam Participation in a disease management program Flu vaccination Non-tobacco user or completion of the Wisconsin Tobacco Quit Line Life Focus health risk assessment $50 $75 $75
  12. 13. Diversified Benefit Services, Inc. (DBS) <ul><li>A third party administration firm dedicated to excellence in employee reimbursement programs and other unique employee benefits. </li></ul><ul><ul><li>Founded 1987, located in Hartland, WI </li></ul></ul><ul><ul><li>Privately held company with 55 employees </li></ul></ul><ul><li>Specializes in design, communication, enrollment, compliance testing and third party administration of flexible spending accounts, health reimbursement arrangements, transportation plans, health savings accounts and premium only plans </li></ul>
  13. 14. Diversified Benefit Services, Inc. (DBS) <ul><li>Dedicated to providing exceptional customer service and educating participants on available benefit services </li></ul><ul><li>Access to account information online through Advanced Strategic Administration Program (A.S.A.P. ®) </li></ul><ul><ul><li>view claim and reimbursement information </li></ul></ul>
  14. 15. Costs <ul><li>Diversified Benefit Services, Inc. will charge employers who enroll in the program: </li></ul><ul><ul><li>set-up fee ($3.25 per insured employee- $90 minimum) </li></ul></ul><ul><ul><li>$4.35 per contract (per insured employee), per month for administering the HRA ($90 minimum contract fee per month) </li></ul></ul><ul><li>No additional administration cost from Security Health Plan to employers or members </li></ul>
  15. 16. Cost Savings Without Healthy Advantage Rewards Employer A- $250 deductible Employees 25 Premium PEPM $ 880 (PEPM=per employee, per month) Monthly premium $ 22,000 Annual premium $ 264,000 With Healthy Advantage Rewards-scenario 1 Employer A- $1250 HDHP deductible Employees 25 Premium PEPM $ 720 Monthly premium $ 18,000 Annual premium $ 216,000 Premium savings per year: $48,000 $625 HRA incentive account/subscriber: $15,625 HRA set-up fee ($3.25/ee- $90 min) $ 90 HRA account fee from DBS ($4.35): $ 1,305 Total incentive account cost: $17,020 Total potential savings after maximum incentive account funding: $30,980 With Healthy Advantage Rewards-scenario 2 Employer A- $1000 deductible, $25 office visit copay Employees 25 Premium PEPM $ 800 Monthly premium $ 20,000 Annual premium $ 240,000 Premium savings per year: $ 24,000 $500 HRA incentive account/subscriber: $12,500 HRA set-up fee (3.25/ee-$90 min) $ 90 HRA account fee from DBS ($4.35): $ 1,305 Total incentive account cost: $13,895 Total potential savings after maximum incentive account funding: $10,105
  16. 17. Advantage for Members <ul><li>Members can use the money in their Healthy Advantage Rewards incentive account to cover deductible and/or coinsurance portions of their out-of-pocket expenses </li></ul><ul><li>Online tracking </li></ul><ul><ul><li>Security Health Online: track incentive completion status </li></ul></ul><ul><ul><li>DBS portal: check status of deductible and/or coinsurance claim, monitor incentive reimbursement status </li></ul></ul>
  17. 18. Advantage for Members
  18. 19. <ul><li>Thank you for learning more about </li></ul><ul><li>Healthy Advantage Rewards </li></ul>Contact your independent insurance agent or the Security Health Plan Sales Department at 1-800-622-7790 to add this benefit to your coverage.

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