Dodi Kelleher (Safeway) at Consumer Centric Health, Models for Change '11

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Live Life, Live Long, Live Well™
An Evolving Health and Wellness Strategy. Dodi Kelleher, DMH
Director, Health and Wellness Initiatives, Safeway Inc.
One of the largest food and drug retailers in North America
200,000 employees and 1,725 stores across the US and Canada. Safeway health benefits offered to 30,000 corporate and store employees


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Dodi Kelleher (Safeway) at Consumer Centric Health, Models for Change '11

  1. 1. Consumer-Centric HealthModels for Change „11
  2. 2. Live Life, Live Long, Live Well™An Evolving Health and Wellness Strategy October 13, 2011 Dodi Kelleher, DMH Director, Health and Wellness Initiatives Safeway Inc.
  3. 3. Getting to Know Safeway One of the largest food and drug retailers in North America  200,000 employees and 1,725 stores across the US and Canada  Network of distribution, manufacturing and food processing facilities  Safeway.com Safeway health benefits offered to 30,000 corporate and store employees Majority of union population receives benefits through labor trust funds, principally UFCW and Teamsters
  4. 4. Four Chronic Conditions = 74% of Disease Costs Cost Distribution by Disease State 17% 100% 74% of Costs 9% 10% 11% 20% 33% CVD Cancer Diabetes Overweight Other All Other Total & Chronic Disease Obesity Cost 80% 30% / 60% 80% Nearly all % Preventable / Manageable CVD/Stroke Type 2 can improveSource: CDC, HHS, 2005 data, Safeway analysis
  5. 5. Cost of Unhealthy and Non-compliant Behavior Unhealthy Behaviors are Expensive Non-Compliant Behavior is Common 2010 Incremental Cost % Non-Compliant with Recommended Care $1,796 67 $1,437 55 51 46 46 34 Obese 35 32 $652 $617 $488 Smoking Obesity Lack of Uncontrolled Uncontrolled Coronary Hyper- Colorectal Asthma High Diabetes Overweight/ Exercise Hypertension Cholesterol Artery tension Cancer Cholesterol Obesity DiseaseSource: Elizabeth McGlynn, et al, The Quality of Health Care Delivered to Adults in the United States, NEJM, Vol. 348:2635-2645 June 26, 2003 (No. 26); NHANES 2005-06
  6. 6. Creating a Healthier SafewayEnable employees and Create businessfamilies to improve health advantage forand quality of life Safeway We have a strong belief in the efficiency of markets and the power of pricing... And the confidence that employees can be informed consumers of health care and are willing to be held accountable for their actions. Safeway’s Vision Statement: We earn the loyalty of the people we serve through the talents and passion of employees
  7. 7. Programs To Identify and Manage Risks Safeway Wellness Offerings Program Incentive Type Eligible PopulationHealthy Measures Premium Discount Benefit Eligible Employees,Health Assessment Spouses, and Domestic PartnersMy Well Family Survey Premium Discount HRA Eligible Employees, Spouses,Health and Consumerism Training and Domestic PartnersJumpStart Team Health Challenge Virtual tickets in a All Safeway Employees in US andFamily Focused Health Challenge raffle CanadaWeight Management Programs Subsidized Cost All Safeway Employees whereHealthy Cafeterias availableGym MembershipsSmoke Free Campus No Cost All Safeway Employees whereOnsite Fitness Center availableWeekly Wellness Classes
  8. 8. Healthy Measures Reductions to medical benefit premium if employees and/or covered spouse/domestic partner meet the following : ─ BMI below 30 mg/dL ─ Blood Pressure <140 & <90 ─ Cholesterol < 220 ─ Glucose <116 ─ No nicotine use Employees who miss one or more of the measures, can earn retroactive rebate if they meet standards or improve sufficiently by year end Provide a one year “pass” for those who meet NIH standards in all measures
  9. 9. Healthy Measures Testing ResultsFor 2009 Plan Year For 2011 Plan Year Employees  Employees – 70% participation – 76% participation – 51% qualified for all 4 discounts – 58% qualified for all 4 discounts – 12% qualified for 1 or fewer – 39% improved at least one of discounts four test results from 2009 Spouse / Domestic Partners  Spouse / Domestic Partners – 56% participation – 69% participation
  10. 10. Healthy Measures Two Year Results Percent of Participants Passing in Plan Year 2011 Who Did Not Pass in Plan Year 2009 73% Employees and Spouses 45% 43% 35% 21% Blood Pressure Glucose Cholesterol Tobacco BMINo Pass‟09 1,899 1,378 2,674 1,106 3,295Passed „11 1,379 616 1,160 392 708
  11. 11. Long Term Engagement Drives Success 100 Number of Participants JumpStart Health Challenge 1 - Initial BMI 80 37.1% Obese 60 40 37.8% 8.6% 20 1.5% 23.6% 22.3% 6.2% 0 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46+ 100 JumpStart Health Challenge 2 - Post BMINumber of Participants 80 30.2% Obese 60 40 40.1% 7.2% 20 18.5% 4.6% 1.7% 28.0% 0 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46+ Underweight Ideal Weight Overweight Obese Class I Obese Class II Obese Class III
  12. 12. Participants are Embracing the ChangesWhen Healthy Measures participants were surveyed . . . 87% of participants participated because it saved them money 70% said they participated because it rewards healthy lifestylesWhen JumpStart Team Challenge participants were surveyed . . . 93% said they participated to improve or learn more about their health and wellness and were satisfied or very satisfied with the program 78% agreed it had improved their health and 80% said they were likely or very likely to participate in the next challenge and to encourage a co-worker to participate
  13. 13. Creating a More Engaged Consumer What Would One Look Like? Takes personal responsibility for understanding and optimizing health behaviors Is a smart buyer of health care products and services Participates in a transformational consumer-focused health plan
  14. 14. Smart Purchasers of Health Care Recognizes accountability for health care and knows how to maximize health benefits Shops for providers and goods based on value Knows the appropriate medical facility for relevant medical conditions and emergencies Has a collaborative relationship with health care provider Uses quality hospitals and doctors that offer e-visits and online scheduling Understands the financial impact of healthcare choices and the lifetime cost trend14
  15. 15. We Provide Additional Support Dedicated Personal Health Team: – Health and disease prevention information – Telephonic outreach regarding health risks and conditions – Coaching and condition management • Holistic bio-psycho-social approach that is culturally aware • Integrated with other benefits • Reportable outcomes • Some programs like tobacco cessation and diabetes management have “co-pay” incentives Communication and transparency tools • AisleOne • Castlight Health
  16. 16. ChoicePoint (Reference Based Pricing) Safeway Plan sets an amount it will pay for the commodity services such as: – Pharmacy – Labs – Imaging Any amount above this price point is the responsibility of the member Member shops for commodity services via online portal or via phone Ability to view pricing for non-commodity services16
  17. 17. Safeway AisleOne Benefits Portal  A benefits portal for employees and covered spouses/ domestic partners  One-stop shopping experience… available through one URL with one password  A “sticky” experience that engages employees  Comprehensive site to support all aspects of a total health and wellbeing strategy
  18. 18. Supporting Shopping Behaviors: Castlight Health Castlight Health is an online health care decision tool for employees to shop costs before visiting a doctor or making other choices about health care18
  19. 19. Building a “Culture of Health”  Attributes of a “culture of health”Culture = – Corporate values reflect belief that“How things get workforce well-being is a businessdone aroundhere” advantage – Managers demonstrate consideration for employee health, well-being and safety in operational management and planning – Employees believe leadershipHealth = authentically cares about their well-being“Physical, – Employees take accountability foremotional and achieving good healthfinancial well-being”
  20. 20. Why Create a Total Health Brand Creates a way of connecting the various Safeway health benefits and wellness programs that help employees manage their wellbeing, from wellness exams to retirement planning, everyday Encourages a new employee mindset about taking care of physical, emotional and financial health and wellbeing Helps employees and their families be healthier in all parts of life Leads to more present, focused and engaged employees.

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