Corporate Wellness Pogramming To Maximize Return on Investment (ROI)
Corporate Wellness Programming To Maximize Return On Investment (ROI) Presented by: Aida Visakay, Employee Benefit AdvisorJohn Buckley, Corporate Wellness Specialist Andrée Laney, Employment Law Attorney
Introduction• Aida Visakay: AxisPointe President and CEO of AxisPointe, a boutique employee benefit advisory firm since 1991. A speaker and author on Health Care Reform.• John Buckley: Health Fairs Direct Johns Hopkins Graduate, Nationally recognized corporate wellness speaker and author, owner of Health Fairs Direct since 2000.• Andrée Laney: Bressler, Amery & Ross Employment Law Attorney in firm’s Florham Park, NJ Office; counsels businesses on legal issues from recruitment through termination.
Why Wellness as a Business Strategy?• Reduce Medical Cost• Increase Performance• Reduce Absenteeism• Increase Presenteeism• Brand Company
Where Do Your Dollars Go?Whatcan youcontrol? 20%How are yougoing to 80%control it?
Cost of Chronic Diseases Per Person Per Year• Depression/Stress: $3,000• High Blood Pressure: $343• Obesity: $2,500• Overweight: $401• Smoking: $1,623 Milliman and Robertson Consulting, Journal of Occupational Medicine, Journal of Occupational and Environmental Medicine, Journal of Occupational Medicine, CDC
Annual Cost of Obesity (2002) Cost of obesity in the United States $ 117 Billion Overweight population in the United States 35% Obese population in the United States 31% Obesity-related deaths in the United States 300,000 Additional drug costs for overweight patients $ 684 Number of lost workdays due to obesity 39,000,000 Number of doctor visits due to obesity 63,000,000 Percentage of cancer deaths that can be prevented through 33% nutrition, exercise, and weight management Number of diseases with higher prevalence due to obesity 15Sources: “The Surgeon Generals Call to Action to Prevent and Decrease Overweight and Obesity”, US Department of Health and Human Services www-incentahealth-com.netsolads.com/LowerHealthCosts.html
Impact of Weight on Chronic Diseases15% increased risk of thefollowing chronic diseases: • Diabetes • Heart Disease • Respiratory • Cancer
Wellness Options by Cost & ROI Best ROI Value LeastExpensive Service ? ? nsurance Companies 2.5 n-House 17.5 2.51 MostExpensive ealth Fair 4.75 4.5 nline Wellness Portal
Case Studies Using Wellness• RX renewal with a 96% loss ratio: 9.5% increase. Same carrier negotiated to 3.5%; different carrier negotiated to 0% increase.• Medical & RX with a loss ratio of 98% after a 2 year wellness program we reduced claims to a 56% loss ratio: recommended partially self-insured.
The Basic Goals forAchieving Positive -ROI with Wellness: • Hit a Broad Range of Potential Issues to Encourage Individual Lifestyle Changes • Give All Employees Access to Wellness Programs • Personalize Wellness Programs Using Today’s Social Media
Organize Wellness Around Online Wellness Tracker Provide a Central Platform To Organize Your Year-Round Wellness Activities• Includes All Employees***• Fun Interactive Wellness Challenges• Reward Positive Behavioral Changes• Encourages Avoiding Negative Behaviors• Tracking Behavioral Change (Aggregate Data)• Promotes Team Building• Educational, Coaching, HRAs, Webinars, Etc.
Step 1 Full Service Wellness Events Health Fairs3. HRA/Medical Screenings - Create Need for Change• Local Exhibitors Resources – Handle Issues• Flu Vaccinations - Standard Protection• Wellness Related Promotional Items – Rewards & Incentives to Participate
Step 2 Receive Aggregate Data from VendorReview Aggregate Data from Medical Screenings:Establish Baseline of Issues tobe Addressed and Plan Year-Round Programs forInterventionOption:Combine aggregate data into OnlinePortal to combine with behavioral dataalready collected.
Step 3 Implement Program ComponentsTarget Programs to Address Health Risk Factors: • Weight • Blood Pressure • Blood Sugar • Cholesterol • Smoking • Lack of Exercise • Work-Life Balance Choose programs to encourage personal change with the least amount of cost/effort on the part of the company.
Step 4 Implement Programs & Incentives Programs:• Lectures/Workshops• Exercise Programs• Wellness Challenges (Wellness Portals)• American Heart Association – “Fit Friendly Company” Employee Incentives:• Gift Cards• Days Off• Reduced Insurance Premium All health and wellness activities are not• Reduced Cost to Health Clubs created equal from an ROI standpoint.• Prizes Careful Planning and Execution are Critical to achieve a Positive ROI.
RememberThe goal is to encourage Remember:individual lifestyle changes. EssentialComponents: • YEAR ROUND Wellness Programming • Interactive Wellness Challenges • Incentive Based Activities • Address a Broad Range of Interests • Target Individual Health Risks • Bring Resources To Your Employees Wellness programs are individualized based on your company’s culture.
Wellness Program Legal Checklist Part of an insurance plan or a standalone? Who administers wellness program? Are incentives based on participation or standards? Provides medical or non-medical benefits? Mandatory or voluntary? Comply with applicable federal and state law. Maintain confidentiality. Receive only aggregate data.
Health Care Reform (PPACA) Stay Tuned Future of Act uncertain. Be prepared to be compliant. Impact on Employers• $200 million worth of grants tosmall businesses for wellnessprograms.• Must provide free preventive care.
HIPAA: Privacy and Nondiscrimination• Applies only to “group health plans.”• Prohibits discrimination based on health factors.• Prohibits sharing identifiable health data with employer.• Penalties for violations: $100 to $1.5 million per year.
GINA: Voluntary Disclosure Only• Prohibits acquiring, disclosing or discriminating based on genetic information.• Employees can disclose genetic information voluntarily.• EEOC suggests that employers include “Safe Harbor” language on all wellness program materials.• Violations may trigger administrative claims/lawsuits of discrimination.• Can subject employer to HIPAA fines.
ADA: Confidentiality & Accommodation• Prohibits discrimination based on disability.• Generally prohibits inquiries about employees’ disabilities.• Requires reasonable accommodation if necessary to participate in program or meet incentive standard.• Requires all employee medical information to be kept confidential and maintained separate from personnel files.
ERISA: Mandatory Programs• Applies to wellness programs that provide or pay for medical care.• Prohibits interfering with employees’ rights under employee benefit plans.
Other Laws To Consider• Title VII• ADEA/OWBPA• FMLA• FLSA• NLRB• Workers Compensation• Lawful off-duty conduct protections• State anti-discrimination laws
Questions??Aida G. Visakay, CEO, CFP Contact us for:AxisPointe, Employee Benefit AdvisorsP: (973) 299-0022 • How to set up benefits planE: email@example.com to maximize ROI.John Buckley • How to set up a wellnessHealth Fairs Direct program to maximize yourP: (732) 563-9749 x 105 wellness budget and achieveE: firstname.lastname@example.org the greatest ROI.Andrée Peart Laney, Esq. • For questions regardingBressler, Amery & Ross, P.C. legal compliance.P: (973) 245-0686E: email@example.com