Employee Wellness: A Combination of Personal Accountability and Corporate Responsibility

1. Employee Wellness: A Combination of Personal Accountability and Corporate Responsibility – Jeff Selander

2. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Employee Wellness Program An individual’s daily health routines are the best determinant of both overall health and a feeling of wellbeing. A strong employee wellness program is no longer a luxury, but a strategic imperative. It can be the first step to encouraging better health and creating meaningful, positive change in the lives of employees and their families.

3. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Corporate Responsibility Employers, regardless of company size, have an important opportunity to encourage better health among their employees. Various programs and incentives can optimize healthcare spending and improve employee health: Wellness Programs Healthcare Insurance Plan design Population Health Management Self-Funded Benefits

4. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Wellness is more than exercising and eating right. A 2010 Harvard Business Review study defined it as: Wellness Programs An organized, employer-sponsored program that is designed to support employees (and, sometimes, their families) as they adopt and sustain behaviors that reduce health risks, improve quality of life, enhance personal effectiveness, and benefit the organization’s bottom line.

5. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Health Catalyst has created a wellness program, Get Fit, Stay Fit that strives to meet those criteria. The program, developed for team members by team members, uses gaming principles and behavioral science. Teamwork, competition, rewards, and fun motivates team members to embrace healthy behaviors and maintain them over time. Results to date have been profound. Wellness Programs

6. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. The focus companies are putting in to plan design today is a prime indicator of the evolution of the healthcare system. It’s no surprise that utilization is increasing and healthcare costs have skyrocketed. New plans and programs, such as high-deductible health plans (HDHP) tied to a health savings account (HSA), were designed to empower consumers to take responsibility for their health. Healthcare Insurance Plan design

7. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. To truly see the value of high-deductible plans tied to an HSA, adoption of these plans as a percentage of total plans offered should be high, certainly greater than 80%, and ideally closer to 90-100%. The Health Catalyst HSA plan went from 50% adoption rate in 2013 to today’s HAS, as well as traditional insurance programs where the rate exceeds 90%. Healthcare Insurance Plan design

8. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. With the right plan design and basic economic incentives in place, employers can begin to add population health management (PHM) tools and programs. PHM enables an employer to more effectively manage wellness and healthcare spending among employees and remain HIPAA- compliant. Population Health Management

9. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Today, efforts are underway among payers to utilize data and analytics to define, create, and refine healthcare insurance plan design. Over time, employers may be able to conduct predictive modeling for employee populations to plan for the future with greater confidence. Population Health Management

10. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Two challenges are inhibiting PHM from becoming commonplace. 1. Employer access to private employee health data raises serious concerns regarding patient privacy. 2. Most employers don’t have access to payer data and if they do, they are lacking the tools to perform a proper analysis. Population Health Management

11. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. With an effective healthcare insurance plan design, wellness programs to encourage greater accountability, and an analytics infrastructure that delivers insight, organizations can feel confident to take on additional risk and implement self-funded benefits. Self-Funded Benefits

12. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Health Catalyst committed to become self-funded in 2014. Self-funding affords team members the opportunity to impact, and directly share in, the benefits of responsible population management (including lower premiums or premium-free months). Self-Funded Benefits

13. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Demonstrating to team members the direct link between company performance and the cost of healthcare is essential for a successful self-funding model. It provides team members with an even greater sense of ownership in the company and a better understanding of the impact of their healthcare decisions on the bottom line. Self-Funded Benefits

14. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Personal Accountability Meets Corporate Responsibility A sustained culture of collective responsibility provides tangible benefits to both the company and team members. The company is rewarded as the team member population collectively manages care costs. Cost savings, which can grow over time through sustained steward- ship, can lead to a number of rewards for team members.

15. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. More about this topic The Analytics of Health Insurance CO-OPs A Health Catalyst webinar How Health Catalyst Ensures HIPAA Security Compliance: 2 Key Components Clara Pugsley – Corporate Development | Bob White – Director Security & Compliance Motivating Employees Toward Wellness: There’s an App—and a Program—That Works Tom Burton – Executive Vice President and Co-founder | Dave Overfelt Health Catalyst Named a Best Place to Work for Women in Utah Paul Horstmeier – Senior Vice President Health Catalyst Named a “Best Place to Work for Millennials” Health Catalyst Link to original article for a more in-depth discussion. Employee Wellness: A Combination of Personal Accountability and Corporate Responsibility

17. © 2014 Health Catalyst www.healthcatalyst.com Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Jeff Selander – Prior to joining Health Catalyst, Mr. Selander was CFO at HB Ventures, a private equity firm in Boise, Idaho. Health Catalyst is Jeff's fifth start-up as a venture finance professional, and his third as CFO. During his career, Jeff has assisted CEO's in raising over $250 million in debt and equity from institutional investors. Prior to HB Ventures, Jeff was the CFO for Great Basin Scientific, a pre- revenue life sciences start-up. Previous to Great Basin, Jeff played several senior finance roles for iBAHN Corp., a venture-backed high-speed Internet provider to the hospitality industry. During his tenure, annual revenues grew from $8 million to $135 million. Mr. Selander holds an MBA from the F.W. Olin Graduate School of Business at Babson College, Boston, Massachusetts and a BA in international relations from BYU. Other Clinical Quality Improvement Resources Click to read additional information at www.healthcatalyst.com