Wellness Programs – What does the future hold?Curt Palmer – MasterCardLaurie Knutson – FIS Healthcare & Wellness Product S...
Agenda• Laurie Knutson FIS Healthcare & Wellness Product Strategy  Laurie Knutson, FIS Healthcare & Wellness Product Strat...
Wellness Program Trends & Best Practices
Why is Wellness Important?                             4
Unsustainable U.S. Healthcare Costs                                                                                       ...
What is Driving Healthcare Costs?• Chronic disease: resulting from longer life spans and a host of social and cultural    ...
The ChallengeThe challenge for companies amidst global competition is to create an organizational culture that promotes a ...
Patient ‘Self‐pay’ Ratios                                                  30%Consumers are now increasingly              ...
Population Health• FIS believes that long‐term wellness and healthier lifestyles are achieved when using     wellness prog...
The Wellness Incentive OpportunityCurt Palmer- VP, Healthcare Solutions                                                   ...
About This Presentation Confidentiality Notice  The information contained in this presentation is the property of MasterCa...
Situation Analysis:Increasing Need for Wellness Programs• The cost of insuring employees has increased 54     percent sinc...
Situation Analysis:Financial Incentives are Being OfferedPercentage of companies offering financial incentives inwellness ...
Research Objectives• In the fourth quarter of 2009, MasterCard and Harris   Interactive conducted a 30-minute online surve...
Online Surveys: Propensity Weighting• I this study, results were weighted on th b i of:  In thi t d        lt         i ht...
We Surveyed Employeesfrom a Variety of Companies• E  Employed f ll ti     l   d full-time at                      t    com...
Wellness Program InsightsADVANCING PROFITABILITY   ADVANCING COMMERCE
Wellness Programs Are Availableto Most Employees in the SurveyIn our survey, 1,080 people − 78 percent of those surveyed− ...
Poll A• Q What percentage of employees in the U.S. have  Q: Wh t      t     f    l      i th U S h   participated in at le...
How Many Employees are Participating?In the past year, 46 percent of those with access to a wellness programhave participa...
Why aren’t More People Participating inWellness Programs?Time constraints seen as biggest barrier                         ...
Motivating Factors are Both Intrinsicand ExtrinsicReceiving rewards/incentives and the desire to improvehealth are the mos...
Role of IncentivesADVANCING PROFITABILITY   ADVANCING COMMERCE
Participation is Higher when Incentivesare Part of the ProgramCompanies offering rewards/incentives have a significantly h...
Rewards Work Better than Penalties                    Likelihood to Participate to Receive                                ...
Poll B• Q What percentage of employees in the U.S. who  Q: Wh t      t     f    l      i th U S h   have participated in a...
A Variety of Rewards and Incentives AreBeing OfferedOver 40 percent of employees with wellness programsare receiving rewar...
Money Is the Top MotivatorMonetary rewards are more motivating than insurance premiumreductions                        Mon...
Money Motivates—But How Much Money Motivates Most?• The range between    $70 and $100 appears                             ...
Poll C• Q What percentage of employees in the U.S. who  Q: Wh t      t     f    l      i th U S h   have participated in a...
Prepaid Cards Are Well Liked as a Form ofMonetary RewardMost appealing monetary reward is either extra moneyin paycheck an...
Incentives Are Typically Given at theBeginning and End of ProgramsThere may be an opportunity to increase participation th...
Testing the Wellness CardConceptADVANCING PROFITABILITY   ADVANCING COMMERCE
Wellness Rewards Card                 Earn:                                                              Burn:            ...
Participants and Nonparticipants Likethe Wellness Card ConceptEven nonparticipants and employees from companies without we...
The Wellness Card Motivates Employees      to Sign Up and Stick with a Program      Approximately half of nonparticipants ...
Factors that Encourage Employees toSign Up and Stick with a WellnessProgramCard acceptance/rewards encourage participation...
ConclusionsADVANCING PROFITABILITY   ADVANCING COMMERCE
Offer Incentive Rewards• Companies that are offering wellness programs have only half of    their employees participating....
The Impact of Successful Wellness ProgramsW ll     P
Wellness Programs = Real Change• Wellness programs are defined as programs designed to maintain or improve     employee he...
Wellness – An Opportunity to Bend the Cost Curve                                         42
Wellness – An Opportunity to Bend the Cost Curve                                         43
Wellness ROI• Companies frequently fail to make wellness programs work financially. •TTwo common pitfalls include a lack o...
FIS Wellness/Consumer EngagementWealthCare Portal                                                Personal Health Record   ...
Choosing a Wellness Partner• Wellness programs range from turn‐key content rich to personalized coaching  Wellness program...
Start with the High Impact ProgramsThe most impactful programs with respect to improving employee health and pproductivity...
Whose Responsibility is Wellness?                                    48
Questions and Answers
Thank You Laurie Knutson, FIS Healthcare & Wellness Product StrategyL i K t         FIS H lth      & W ll     P d t St tla...
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Wellness Program Trends

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Provides an overview of wellness program trends, including a look at the role of prepaid wellness cards as a central component of employer wellness programs. We will also look at meaningful incentive thresholds and identify obstacles to program adoption.

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Wellness Program Trends

  1. 1. Wellness Programs – What does the future hold?Curt Palmer – MasterCardLaurie Knutson – FIS Healthcare & Wellness Product Strategy gy
  2. 2. Agenda• Laurie Knutson FIS Healthcare & Wellness Product Strategy Laurie Knutson, FIS Healthcare & Wellness Product Strategy – The business case for wellness – Wellness program ROI – Choosing a wellness partner – Best practices for ensuring wellness program success• Curt Palmer, Business Leader, Healthcare Solutions; MasterCard – Review of research – wellness program insights – Role of incentives 2
  3. 3. Wellness Program Trends & Best Practices
  4. 4. Why is Wellness Important? 4
  5. 5. Unsustainable U.S. Healthcare Costs All Other  Healthcare Medicaid Medicare Source: Congressional Budget Office. Note: Amounts for Medicare are net of beneficiaries’ premiums. Amounts for Medicaid are federal spending only. 5
  6. 6. What is Driving Healthcare Costs?• Chronic disease: resulting from longer life spans and a host of social and cultural  “advancements” – The CDC estimates that healthcare costs for chronic disease treatment account for more than  75 percent of national health expenditures.  – The obesity epidemic is estimated to cost private employers $45 billion per year in combined  medical expenditures and worker absenteeism  medical expenditures and worker absenteeism 1 – Total cost of diagnosed diabetes patients in U.S. was $174 billion in 2007, which included  $116 billion as direct costs and $58 billion as indirect costs such as disability, work loss and  premature mortality. 2• Technology and prescription drugs• Aging of the population• Administrative costs  Some studies suggest at least 50 percent of an organization’s healthcare costs are  linked to smoking, poor diet and lack of exercise on the part of employees. 1 Rosen, B. and Barrington, L. “Weights & Measures: What Employers Should Know about Obesity.” New York, NY: The Conference Board, April 2008.2 National Center for Chronic Disease Prevention and Health Promotion. 2007 National Diabetes Fact Sheet. 6
  7. 7. The ChallengeThe challenge for companies amidst global competition is to create an organizational culture that promotes a high‐performing workforce in a high‐performance workplace.culture that promotes a high performing workforce in a high performance workplace• The total costs of an unhealthy workforce are growing at an unsustainable pace.• Workforce health and productivity translate into direct and indirect costs for every  employer, and both the workplace environment and the lifestyles of employees and  their families influence those costs.• Employer‐sponsored health insurance plays a part, but avoiding conditions is  preferable to treating conditions.  preferable to treating conditions• Employers are looking for creative ways to help employees and their families improve  their health—or simply stay healthy.• Cost shifting is not a sustainable solution and employers do it reluctantly. Cost shifting is not a sustainable solution and employers do it reluctantly.• A better investment would be to elevate employee health to an integral part of an  overall human capital “asset management” strategy. 7
  8. 8. Patient ‘Self‐pay’ Ratios 30%Consumers are now increasingly  25%responsible for the  p ity ent Responsibilicost of their own healthcare. 20% % Patie 15% 10% 2007 2008 2009 2010 2011 2012 Source: Celent, Effective Solutions, athenahealth, CMS
  9. 9. Population Health• FIS believes that long‐term wellness and healthier lifestyles are achieved when using  wellness programs that examine both financial and physical wellness. ll h b hf l d h l ll• While it is critically important to support the highest risk employees who suffer from  chronic disease and represent the highest cost claims, it is equally important to help  all employees stay healthy and remain at the low end of the risk spectrum or reverse  all employees stay healthy and remain at the low end of the risk spectrum or reverse their trend toward unhealthy behaviors.• This is what we mean by “population health” – the ability to provide coaching and  support to every employee or member, no matter where they are on the health  continuum.• You need to target wellness programs through your healthcare plans to your most  costly populations, but not forget about helping the general population from getting  sicker. i k• The focus of this webinar is the Wellness Programs  we believe address your  employees’ physical health. 9
  10. 10. The Wellness Incentive OpportunityCurt Palmer- VP, Healthcare Solutions ©2010 MasterCard ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential
  11. 11. About This Presentation Confidentiality Notice The information contained in this presentation is the property of MasterCard Worldwide and may not be duplicated or distributed by any third-party without the prior written consent of MasterCard Worldwide. MasterCard Worldwide does not make any representations or warranties with respect to the completeness or k t ti ti ith t t th l t accuracy of the research and information contained within this presentation and hereby disclaims any liability with respect to reliance upon the content contained herein. Third Party Research Notice Please note that the information provided in the slides in this presentation is based on information obtained from third-party survey responses and other third-party data inputs. MasterCard has not verified the accuracy of this information and disclaims any liability arising from the accuracy or completeness of the information. ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 11
  12. 12. Situation Analysis:Increasing Need for Wellness Programs• The cost of insuring employees has increased 54 percent since 1991.• About two-thirds of U S adults are overweight or two thirds U.S. obese. Fifty-five percent do not get enough physical activity, while 26 percent are completely inactive.• If diet and physical activity patterns continue t worsen di t d h i l ti it tt ti to at their current rate, they will soon surpass tobacco use as contributors to mortality.Source: Kaiser/HRET survey of employee sponsored health benefits cited in, “Employee Health Promotion Programs: Supporting Scientific Research andWellness Statistics,” American Chronicle (September 17, 2008). ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 12
  13. 13. Situation Analysis:Financial Incentives are Being OfferedPercentage of companies offering financial incentives inwellness programs Completion of a Health Risk Appraisal 66% Participation in Smoking Cessation P P ti i ti i S ki C ti Program 40% Participation in Weight Management Program 34% Completion of Biometric Screening 32% Participation in Health Coaching 29%Participation in Disease Management Program 26% Completion of an Adult Health Exam 15% Maintenance of a Personal Health Record 7%Sources:”Incentives: Detailed Findings from the 15th Annual Towers Watson/National Business Group on Health Survey on Purchasing Value in Health Care, “TowersWatson (2010). ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 13
  14. 14. Research Objectives• In the fourth quarter of 2009, MasterCard and Harris Interactive conducted a 30-minute online survey to investigate what motivates employees to engage in a wellness program.• Th research objectives were t The h bj ti to: – Identify wellness program trends – Better understand the wellness incentive market – Test a new product concept: a reloadable, prepaid wellness card for employers to offer their employees – Determine meaningful incentive thresholds – Identify obstacles to program adoption ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 14
  15. 15. Online Surveys: Propensity Weighting• I this study, results were weighted on th b i of: In thi t d lt i ht d the basis f – Age, income, gender – Region, race, Region race education – Propensity to be online• Harris Interactive uses p ope s ty weighting tec ques to a s te act e propensity e g t g techniques ensure that a survey fielded solely online is representative of the entire population (and not just the online portion of the population). ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 15
  16. 16. We Surveyed Employeesfrom a Variety of Companies• E Employed f ll ti l d full-time at t companies with 250 or more 250 – 999 Employees 326 employees• 1,381 respondents 1,000 – 9,999 Employees 526• U.S. adults ages 18 − 64 10,000 + Employees 532Q: Approximately how many employees does the company that you work for have in total? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 16
  17. 17. Wellness Program InsightsADVANCING PROFITABILITY ADVANCING COMMERCE
  18. 18. Wellness Programs Are Availableto Most Employees in the SurveyIn our survey, 1,080 people − 78 percent of those surveyed− worked for a company offering a wellness program. p y g p g 250 − 999 Employees: 67% 1,000 − 9,999 Employees: 81% 10,000 + Employees: 82%Q: Does your company currently offer any [of the following types of] wellness programs for employees?Q: Approximately how many employees does the company that you work for have in total? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 18
  19. 19. Poll A• Q What percentage of employees in the U.S. have Q: Wh t t f l i th U S h participated in at least one employer-offered wellness program in the p p g past y year? – A.14% – B. 26% – C. 46% – D. 61% – E. Not sure ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 19
  20. 20. How Many Employees are Participating?In the past year, 46 percent of those with access to a wellness programhave participated. 33% 44% 46% 13% 10% Have Wellness Programs (n=1,080) Currently Participating Have Participated This Year Have Not Participated This Year Have Never ParticipatedBase: Company Offers Wellness ProgramsQ: Have you actively participated in any of the wellness programs offered by your company? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 20
  21. 21. Why aren’t More People Participating inWellness Programs?Time constraints seen as biggest barrier I Am Too Busy/Dont Have Time 46% I Lack the Necessary Self-Discipline 29% The P Th Programs A I Are Inconvienient i i t 24% I Dont Know Enough About the Programs Offered 20% I Dont Have Enough Energy 19% I Am Concerned About Confidentiality 17% I Do Not Have Access To On-Site Programs 15% The Programs Are Disorganized 12% My Manager Doesn t Allow Me the Time Doesnt 10%I Met My Initial Goals and Am No Longer As Motivated 7% Have Wellness Programs (n=1,080)Base: Active and NonparticipantsQ: What barriers, if any, keep you from [signing up for and] sticking with your company’s wellness programs? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 21
  22. 22. Motivating Factors are Both Intrinsicand ExtrinsicReceiving rewards/incentives and the desire to improvehealth are the most motivating g Opportunities to Receive Rewards or Incentives 25% Personal Desire to Improve Health and Well-Being 25% Free or Reduced-Cost Access to Health-Related Services and Programs at work Programs at work 21% On-Site Access to Health-Related Services and Programs at Work 15% Opportunity to Do My Share to Help My Company Keep Health Care Affordable Affordable 4% An Employee Competition or Challenge 4%Opportunities to Learn More and Be Encouraged to Stay Healthy and Balanced And Balanced 2% Improved Morale and Camaraderie Among Coworkers 2% Ability to Track Progress Online 1% Total (n=1,381)Base: All Qualified RespondentsQ: How motivating is/would each of the following [be] for you to participate in a wellness program? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 22
  23. 23. Role of IncentivesADVANCING PROFITABILITY ADVANCING COMMERCE
  24. 24. Participation is Higher when Incentivesare Part of the ProgramCompanies offering rewards/incentives have a significantly higherparticipation rate Companies That Offer Companies That Don’t Offer Rewards/Incentives Rewards/Incentives 26% 39% 61% 74% (n=511) (n=417) Nonparticipants Active Participants Nonparticipants Active ParticipantsBase: Active and NonparticipantsQ: What types of rewards or incentives, if any, are offered for participating in your company’s wellness programs? Please select all that apply.Q: Have you actively participated in any of the wellness programs offered by your company? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 24
  25. 25. Rewards Work Better than Penalties Likelihood to Participate to Receive Change in Perception of Company Incentives vs. Avoid Disincentives if Disincentives Were Used Mean 3.9 3.1 3%Extremely likely 6% 23% % 40% 18% 19% 30% 30% 24% 11% 19% 43% 5% 24%Not at all likely 6% Receive an Incentive Avoid a Disincentive Much More Positive Perception Much More Negative Perception Total (n=1,381) Somewhat More Positive Perception Somewhat More Negative Perception No Change in Perception No Change in Perception Somewhat More Positive Perception Somewhat More Negative Perception Much M M Much More Negative Perception h More P iti P Positive Perception ti Base: All Qualified Respondents Q: How likely would you be to participate in a wellness program to…? Q: If your company were to penalize those who do not participate in company wellness programs, how would your perception of your company change? ©2010 MasterCard. ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 25
  26. 26. Poll B• Q What percentage of employees in the U.S. who Q: Wh t t f l i th U S h have participated in an employer-offered wellness p g program in the p past yyear have received a reward or incentive? – A. 57% – B. 42% – C. 32% – D. 21% – E. Not sure ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 26
  27. 27. A Variety of Rewards and Incentives AreBeing OfferedOver 40 percent of employees with wellness programsare receiving rewards/incentives Types of wellness rewards/incentives offered to employees already participating in the wellness program 16% 64% Discounts or Reimbursements or Health Insurance Premium Reduction Monetary Rewards (e.g. Extra Money In Paycheck, PrepaidPrepaid Card) Paycheck, Card) 36% Prizes or Merchandise 26% 42% Awards or Recognition 17%42% Perks (e.g. Time Off, Special Events) 12% Lottery or Drawing 9% Have Wellness Programs (n=1,080) Other 4% Respondents (n=511)Base: Active and NonparticipantsQ: What types of rewards or incentives, if any, are offered for participating in your company’s wellness programs? Please select all that apply. ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 27
  28. 28. Money Is the Top MotivatorMonetary rewards are more motivating than insurance premiumreductions Monetary Rewards 38% 24% 20% 81%Health Insurance Premium Reduction 38% 20% 12% 69%Perks (e.g., Time Off, Special Events) 8% 17% 27% 52% Discounts or Reimbursements 12% 20% 14% 45% Prizes or Merchandise 12% 16% 32% Awards or Recognition 6% 11% Lottery or Drawing 6% 10% Ranked First Ranked Second Ranked Third Ranked in Top 3 Motivated by Incentives (n=1,224) (n=1 224)Base: Company Offers IncentivesQ: Thinking specifically of the various types of rewards and incentives that can be offered for participation in a wellness program, what would be the most motivating to you? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 28
  29. 29. Money Motivates—But How Much Money Motivates Most?• The range between $70 and $100 appears 50% to promote the greatest letion 40% incremental gains in tion and Compl program participation 30%• The wellness card 20% demonstrates Participat 10% diminished return at 0% investment at $150 $ $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Total Cash Value of Incentive Likelihood to enroll in program Likelihood to co p e e p og a e ood o complete programNote: Base case assumes a 6-week program for Exercise, Healthy Eating, and Stress Management, with incentives distributed monthly. Health Risk Assessment is a one-time event. ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 29
  30. 30. Poll C• Q What percentage of employees in the U.S. who Q: Wh t t f l i th U S h have participated in an employer-offered Wellness p g program would like to receive a p p prepaid card as their reward for participation? – A. 89% – B. 73% – C. 67% – D. 9% – E. Not sure ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 30
  31. 31. Prepaid Cards Are Well Liked as a Form ofMonetary RewardMost appealing monetary reward is either extra moneyin paycheck and branded prepaid cards Direct Deposit Into Bank Account or Paycheck 91% Receiving a Branded Prepaid Card 89% Receiving a Paper Check 80% Receiving a Store Brand Gift Card 40% Total (n 381) (n=381)Base: All Qualified RespondentsQ: If you were to earn monetary rewards for participating in your company’s wellness programs, which of the following would be most appealing? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 31
  32. 32. Incentives Are Typically Given at theBeginning and End of ProgramsThere may be an opportunity to increase participation throughincremental rewards At Program Initiation 45% Upon Program Completion 25% Other 17% Based on Specific Milestones 15% Not Sure 8% Averaged Across All Types of IncentivesBase: All Qualified RespondentsQ: How often are the rewards or incentives offered or distributed for participating in wellness programs? Please select all that apply. ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 32
  33. 33. Testing the Wellness CardConceptADVANCING PROFITABILITY ADVANCING COMMERCE
  34. 34. Wellness Rewards Card Earn: Burn: Health risk Intended for use at assessment healthcare providers completion and merchants Wellness W ll Health and program wellness merchant participation discounts Other rewards Consolidated wellness Aggregate usage or programs rewards d reporting for ti f employers Prepaid reloadable card Incent behavior change throughout the year g y Custom messaging capabilities Employer funding tool Employee web portal ©2010 MasterCard. February 18, 2011 ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential 34
  35. 35. Participants and Nonparticipants Likethe Wellness Card ConceptEven nonparticipants and employees from companies without wellnessprograms responded favorably Total (n=1,381) 29% 36% 65% Active Participants (n=503) 37% 44% 81% Nonparticipants (n=577) 26% 32% 58% No Wellness Programs (n=301) 25% 43% 68% % Total (n=1,381) Like the Concept a Lot Like the Concept SomewhatBase: All Qualified RespondentsQ: In general, what is your impression of the wellness card concept? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 35
  36. 36. The Wellness Card Motivates Employees to Sign Up and Stick with a Program Approximately half of nonparticipants say they would participate if a wellness card is made available Sign Up 36% 27% 63% Total (n=1,381) Stick With 25% 33% 58% Active Sign Up 50% 28% 78%Participants Stick With 73% (n=503) 40% 33% Non- Sign Up 27% 26% 53%participants Stick With 15% 30% 45% (n=577)No Wellness Sign Up 34% 29% 63% Programs (n=301) Stick With 23% 38% 61% Extremely Likely Somewhat Likely Base: All Qualified Respondents Q: If your company were to provide monetary rewards on a Wellness Card, how likely would you be to sign up for and stick with your company’s wellness programs? ©2010 MasterCard. ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 36
  37. 37. Factors that Encourage Employees toSign Up and Stick with a WellnessProgramCard acceptance/rewards encourage participation Monetary Rewards Can be Spent Anywhere Major Credit Cards are 27% 47% 74% Accepted Are Accepted Card Can be Reloaded by Company When Rewards Have Been 35% 31% 66% Earned EarnedOpportunity to Earn Additional Monetary Rewards for Using Wellness 35% 28% 63% WellnessHealthfor Health and Wellness-Related Purchases Card for Card and Wellness-Related Purchases Ability to Log In to an Employee Website to Monitor Wellness Card Balance Card Balance 31% 19% 50% Access to Retail Discounts/Special Offers on Health And Wellness- Wellness Related Purchases 29% 17% 46% Related Purchases Total (n=1,381) Extremely Motivating Somewhat MotivatingBase: All Qualified RespondentsQ: How motivating are each of the following features or benefits of the wellness card to you personally when making a decision about whether to sign up for and stick withyour company’s wellness programs? ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 37
  38. 38. ConclusionsADVANCING PROFITABILITY ADVANCING COMMERCE
  39. 39. Offer Incentive Rewards• Companies that are offering wellness programs have only half of their employees participating.• Currently, less than half of employees are offered rewards and incentives for participation.• R Rewards work b d k better than di i h disincentives; target employees are more i l motivated by incentives than by avoiding a disincentive.• Approximately half of nonparticipants say they would participate in wellness programs if a wellness card was made available.• Broad card acceptance and providing rewards throughout the y year scored the highest when the card concept was tested. g p• The range between $70 and $100 appears to promote the greatest incremental gains in program participation. ©2010 MasterCard.ADVANCING PROFITABILITY ADVANCING COMMERCE Proprietary and Confidential Page 39
  40. 40. The Impact of Successful Wellness ProgramsW ll P
  41. 41. Wellness Programs = Real Change• Wellness programs are defined as programs designed to maintain or improve  employee health before problems arise. employee health before problems arise• Beginning in 2014, small businesses can apply for grants to implement  comprehensive workplace wellness programs through a $200 billion, five‐year federal  p g program designed to address underlying poor health habits and promote disease  g y gp p prevention through: – Smoking cessation – Stress management  – Weight loss  – Reduced intake of fatty, high‐calorie foods  – Other ways of healthier living• PPACA s provisions all demonstrate an interest in supporting wellness programs as a  PPACA’s provisions all demonstrate an interest in supporting wellness programs as a means to find cost savings through encouraging healthy behavior.  41
  42. 42. Wellness – An Opportunity to Bend the Cost Curve 42
  43. 43. Wellness – An Opportunity to Bend the Cost Curve 43
  44. 44. Wellness ROI• Companies frequently fail to make wellness programs work financially. •TTwo common pitfalls include a lack of commitment from senior leaders (who must  i f ll i l d l k f i f i l d ( h function as role models) and the failure to integrate the health promotion program  with the delivery of benefits and incentives.• The most effective tools bring the financial and health elements together to help  The most effective tools bring the financial and health elements together to help employees understand the impact of health on wealth• FIS has integrated a full suite of Wellness programs into our Consumer Directed  Healthcare Solutions to meet the needs of employees when managing their health  and their wealth 44
  45. 45. FIS Wellness/Consumer EngagementWealthCare Portal Personal Health Record Personal Health Record Mobile Wellness Wellness tools and Health Risk Assessments 45
  46. 46. Choosing a Wellness Partner• Wellness programs range from turn‐key content rich to personalized coaching Wellness programs range from turn key, content rich to personalized coaching.• The program should reflect your organization’s values, style and budget.• FIS researched a number of companies to partner with for integrated wellness  p solutions as part of our WealthCare Product Portfolio.• Key elements: – Proven results to effectively change behavior – Ease of use and integration with our product suite – Scalable, with durable results for individuals – Ability to offer mobile solutions to improve participation and results• FIS has chosen HealthMedia because they offer Digital Health Coaching programs for  the most prevalent and impactful behaviors and the best value for companies to help  th t l t di tf l b h i d th b t l f i t h l their employees better manage their health. 46
  47. 47. Start with the High Impact ProgramsThe most impactful programs with respect to improving employee health and pproductivity include: y• Weight Management => HealthMedia® Balance™ Program Results:  – 55 percent of participants lost weight after 180 days – Productivity Improvements: Estimated productivity savings of $905/year* per participant with a BMI of 30+• Smoking Cessation => HealthMedia® BreatheTM Program Results: Smoking Cessation => HealthMedia® Breathe Program Results: – 52 percent reported they still were not smoking six months after completing the program – 92 percent of participants who quit smoking indicated they were confident, very confident or extremely  confident they could remain smoke‐free 180 days after completing the program• St Stress Managements => HealthMedia® RelaxTM P M t > H lthM di ® R l Program Results: R lt – More than 58 percent of participants reported a decrease in personal symptoms of excess stress 180 days  after taking Relax™ – Productivity improvements: Estimated productivity savings of $590/year* per participant, based on a  $50,000 annual salary $50 000 annual salary• Nutrition Management => HealthMedia® NourishTM Program Results: – 91 percent reported an improvement in their nutrition efforts at 180 days• Physical Activity Management => HealthMedia® MoveTM• Sleep Improvement => evidence‐based techniques to help individuals recover from insomnia 47
  48. 48. Whose Responsibility is Wellness? 48
  49. 49. Questions and Answers
  50. 50. Thank You Laurie Knutson, FIS Healthcare & Wellness Product StrategyL i K t FIS H lth & W ll P d t St tlaurie.knutson@fisglobal.comCurt Palmer, Business Leader, Healthcare;Curt Palmer, Business Leader, Healthcare; MasterCardcurt_palmer@mastercard.com

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