For more slides from the San Diego 2012 Corporate Wellness Symposium visit, www.intercaresolutions.com/cws/slidelibrary

1. Our Wellness Journey
Veronica Meyers, SPHR – VP of Human Resources
Robin Weiss, CCP – Sr. Benefit Administrator

2. Our Company
ICW Group
• Privately-held multi-line insurance carrier primarily in property
and casualty
• Founded in 1972
• Workers’ Compensation
• Differences in Condition (Earthquake) • AM Best Rating A-
• Private Passenger Auto – niche (Excellent)
• Surety Claims Management • Insurance Journal’s
• Member Companies 2011 Super Regional
• Insurance Company of the West P/C Insurer
• Explorer Insurance Company • 2011 San Diego’s
• Independence Casualty and Surety Company Healthiest Companies
• Premium volume $400M
• 500 employees
• Operations in CA, NV, FL, IL, WA – have remote team
members in other states
• Products sold through network of 1,500+ independent agents
and brokers
Wellness Journey Page 2

3. Our Exploration Party
Wellness Journey Page 3

4. Veronica
5 years as Chief HR Officer for ICW group
• Most recent prior experience at Fortune 500 companies
• HR Operations, Compensation, Project
Management
• Over 35 years as HR practitioner; multiple
industries, geographies and company sizes; 9 years
teaching at San Diego State University
• Worked in health care as both internal and external
consultant
• Lots of Benefits exposure – no direct Benefits
responsibility prior to current position
Wellness Journey Page 4

5. Robin
4 years as Sr. Benefits Administrator ICW group
• 25 years in HR with emphasis in
benefits, compensation, HRIS and wellness
• Worked in a variety of companies –
manufacturing, retail, distribution
• Served on the board of the local Compensation &
Benefits Association chapter
Wellness Journey Page 5

6. 2008
• Employee medical costs are 5.5% of our
operating expenses
• Since 2002, cost of medical coverage
increased 68%
• 11.2% increase projected for 2009
Wellness Journey Page 6

7. We did a survey!!!
Findings 53% response rate
• Slightly over half were satisfied with their medical coverage
• Employees wanted more education and information about
Benefits
• 73.2% would consider taking a Health Risk Assessment
• Employees would like support for
• 53.3% - healthy eating;
• 53.0% - better exercise program
• 48.7% - losing weight;
• 43.2% - better stress management
Wellness Journey Page 7

8. We built a strategy!!!
GOAL--Attract and retain a healthy workforce to reduce costs
and improve productivity. – Healthier You -- 2009
• Competitive and cost effective
• Partnership with employees
• Largest consumers of health care services should bear the
majority impact of increased medical costs
• Drive participation and engagement in personal health
management
• Multi-layered program of education, health
assessments, personal accountability for health management
and incentives
• Design medical plan benefits to incent proactive disease
management and preventive strategies.
Wellness Journey Page 8

9. We built a plan...well, not quite!
What stopped us?
CEO questions...
• Are we in the “wellness”
business?
• Couldn’t we get the same results
without spending $$ on
Biometrics/HRAs? We have
Claims Data.
• We have consistently had major
claims factor into our experience
– how can we control for
Wellness Journey
premature babies or cancer? 9 Page

10. What helped us?
• Executive Education throughout
the year
• Personal commitment to fitness
In 2009 - we tried again • Insurance background –
presented in terms of risk
management
• A “cost-neutral” strategy –
differential contribution/incentive
strategy whereby the non-
participants contributions covered
the HRA and Biometrics Costs
Wellness Journey Page 10

11. Our Cost Neutral Approach
Over the past two years, we have gradually shifted
Current 2009 Total Premiums:
our overall contribution strategy to fund the cost of a
Share Percent wellness approach with most of the cost shift to
Company Paid $3,685,235 77.14%
Employee Paid $1,091,911 22.86% employees who elect dependent coverage where we
Total $4,777,146
were below benchmark employee share of cost.
2010 Premiums:
- 8.23% increase
- use same percent breakdown as 2009
Net increase to ICW
Increase from Group in 2010 without
Share Percent 2009 Rates implementing HRAs
Company Paid $3,988,644 77.14% $303,409
Employee Paid $1,181,809 22.86% $89,898
Total $5,170,453 $393,307
2010 Premiums: HRA/Biometric breakeven point
- 8.23% increase
- variance in rates due to participation in HRA is at 11% (65) non-participants.
Increase from Increase from
HRA Participation: 100% 2009 Rates Share Percent 75% 2009 Rates Share Percent
Company Paid Premiums $3,925,617 $240,382 75.92% $3,842,217 $156,982 74.31%
Employee Paid $1,244,836 $152,925 24.08% $1,328,236 $236,325 25.69%
Total $5,170,453 $393,307 $5,170,453 $393,307
Company Paid HRA $55,600 $295,982 $42,256 $199,238
Grand Total $5,226,053 $5,212,709
Net increase to ICW Group
Co. savings over standard $63,027 $146,427 in 2010 implementing HRAs
Company Paid HRA $55,600 $42,256 and having 100%
(Company savings offsets HRA costs even when 100% of employees participate) participation. Still lower than
net increase f rom above.
Wellness Journey Page 11

12. 2009 – We Built a Multi Year Plan!
2013 & Beyond: Employee & Spouse Biometrics & Health Risk
Assessment
Reduced Medical Premiums and/or richer plan designs for those who
participate, participation in wellness programs for high risk
individuals, proven compliance of disease management. Individual results
to participant; aggregate results to ICW with comparison to previous years
2012: Employee & Spouse Biometrics & Health Risk Assessment;
Active Participation
Reduced Medical Premiums and/or richer plan designs for those who
participate and participation in wellness programs for high risk
individuals. Individual results to participant; aggregate results to ICW
with comparison to previous years
2011: Employee & Spouse Biometrics & Health Risk Assessment
Reduced Medical Premiums and/or richer plan designs for those who
participate. Individual results to participant; aggregate results to ICW
with comparison to 2010 data
2010: Employee Biometrics & Health Risk Assessment
Reduced Medical Premiums for those who participate.
Individual results to employee; aggregate results to ICW
Wellness Journey Page 12

13. We Developed Our Tactics for 2010
• HIPO hand-selected • $25 per payroll
leader period discount
• Empowerment by CEO Active Wellness Committee
Incentive Contribution ($600/year) for
Strategy
• Small Budget for participation
activities, contests, etc.
• Aggregate data from
HRA to work from
Education, Communication
HRA/Biometrics
and Support
• Partnered with vendor • “Roadtrip”
• On-site wherever • Dedicated Web Pages
possible • Access to fitness
• Detailed communication programs
Wellness Journey Page 13

14. We Faced Some Challenges…
• Ridiculously short time frame <2 months
• 17 office locations – most 2-5 employees
• Medical Plan design changes occurring
simultaneously
• Implemented a new Benefits System for
Open Enrollment
Wellness Journey Page 14

15. And Had Some Great Results for 2010!
• HRA/Biometric screening – 74% participation
• Wellness Committee formed & Operating Plan
established
– On-site Weight Watchers Meetings – 182 lbs lost
– Walking and Running Clubs; Boot Camp training
– Health Topic of the Month on iPortal - 57 hits
– Discounts to gyms and fitness centers
– Vending changes for healthier options
Wellness Journey Page 15

16. We Refined Our Tactics for 2011
• $25 per payroll
• HIPO hand-selected
period discount
leader
($600/year) for
• Empowerment by CEO
participation
• Slightly larger budget for
Incentive Contribution • Added monthly
activities, contests, etc. Active Wellness Committee
Strategy
Employer Funding to
• Aggregate YOY data
PPO H.S.A. Plan
from HRA to work from
Education, Communication
and Support
• Newsletter
HRA/Biometrics
• Emphasis placed on
PPO H.S.A. Plan
• Lunch (comp) and
• Refined process Learns
• Communication • Department
competitions
• Executive-Led Run
Wellness Journey Page 16

17. We Hit Pay Dirt in 2011!
• Recognized as one of Healthiest Companies in San Diego
• Significant progress in lowering several risk factors:
• HDL “good” cholesterol
• Blood Pressure
• Waist Circumference
• Over 55% employees participated in Pedometer Challenge
• 2012 Rate Quote Reduction
Wellness Journey Page 17

18. Sidebar! Another CEO Challenge
• 2012 Rate Quote Reduction – Two carriers in a “bidding
war” for our business
• Current carrier had less in overall savings but no disruption in
coverage to employees
• Carrier “A” offered the greatest savings if we eliminated the HMO
outside of CA and moved CA HMO members into a restricted
network
• Would also cause us to reformulate our benefits strategy in offering
plans that most align with Health Care Reform
Wellness Journey Page 18

19. Sidebar! Another CEO Challenge
Wellness Journey Page 19

20. Sidebar! Another CEO Challenge
Wellness Journey Page 20

21. We Modified our Plan for 2012
2013: Employee Biometrics & Health Risk Assessment; PPO H.S.A.
Exclusive Plan; Outcomes Based Incentives
Reduced Medical Premiums and increased employer funding in savings
accounts for those who participate AND meet standards relative to health
metrics. Evaluate the HMO plan for possible replacement with HRA
plan; continue emphasis & education on the PPO H.S.A. Plan.
2012: Employee Biometrics & Health Risk Assessment; Continued
PPO H.S.A. Emphasis; Introduce Outcomes Based Incentives
Reduced Medical Premiums for those who participate with aggregate
results to ICW with comparison to previous years. Eliminate the
standard PPO plan with continued emphasis & education on PPO
H.S.A. Introduce and communicate outcomes based incentives for
specific biometric results.
2011: Employee Biometrics & Health Risk Assessment Plus PPO
H.S.A. Emphasis and Communication
Reduced Medical Premiums for those who participate. Aggregate
results to ICW with comparison to 2010 data. Emphasize PPO H.S.A.
during Open Enrollment with year long communications program.
2010: Employee Biometrics & Health Risk Assessment
Reduced Medical Premiums for those who participate.
Individual results to employee; aggregate results to ICW
Wellness Journey Page 21

22. We Expanded Our Tactics for 2012
• $25 per payroll
• HIPO hand-selected
period discount
leader
($600/year) for
• Empowerment by CEO
participation
• Much larger Budget for
Active Wellness Committee
Incentive Contribution • Changed PPO H.S.A.
activities, contests, etc. Strategy
funding to front load
• Aggregate YOY data
each quarter
from HRA to work from
• Newsletter
Education, Communication
• Lunch (comp) and
and Support
HRA/Biometrics
Learns
• Department
competitions
• Menu of Activities
• Accepted process • Manager Wellness
• Communication Goal
Wellness Journey Page 22

23. We Expanded Our Tactics for 2012
Manager Wellness Goal
Establish and maintain a culture
of Wellness within your work unit
as demonstrated by:
• Promotion of active participation
by team members in Wellness
programs;
• Appropriate stewardship of
Company funds in purchasing
food and beverages for • Full menu of activities and
department functions; education with more incentives
• Management of your immediate
work environment that displays a • Increased penetration into our
commitment to healthy behaviors. culture
Wellness Journey Page 23

24. We Expanded Our Tactics for 2012
Budget
Year 1:
Biometric Screenings $26,000 Onsite for 94% of employees
Online Wellness Portal for HRA $17,000 One year access for employees
Year 2:
Biometric Screenings $22,000 Onsite for 97% of employees
Online Wellness Portal for HRA $17,000 One year access for employees
Programs $7,500 Pedometers, Lunch & Learns, etc.
Prizes and giveaways $1,500 Gift cards, water bottles, etc.
Year 3:
Biometric Screenings $25,000 Onsite for 97% of employees
Online Wellness Portal for HRA $9,000 One year access for employees
Programs $4,150 YTD Biggest Loser, Fun Runs, etc.
Prizes and giveaways $875 YTD Gift cards, water bottles, etc.
Wellness Journey Page 24

25. What’s Ahead for 2013
2013: Employee Biometrics & Health Risk Assessment; PPO H.S.A. Exclusive Plan; Outcomes Based Incentives
Reduced Medical Premiums and increased employer funding in savings accounts for those who participate AND meet
standards relative to health metrics. Evaluate the HMO plan for possible replacement with HRA plan; continue
emphasis & education on the PPO H.S.A. Plan.
• Outcomes/Results Based Introduction
• Current RFP for Vendors
• 2013 Baseline Measure
• Significant Education
• Preparation of Results Incentive Strategy
• Evaluation of Current Plan Designs
• HMO, PPO/H.S.A
• Possible HRA addition
• HMO Plan Evaluation
• More Accountability
• Manager Goal Assessment
Wellness Journey Page 25

26. Why It’s Working for Us
Vision Leadership
“Our Wellness Vision is to create an environment
of positive choices where ICW Group team
members are able to reach their full potential in
terms of health and well-being.
The 2010 benefits wellness initiative supports the
organization’s culture, core values and objectives
by establishing and providing high-quality, cost-
effective benefit programs that educate and
empower our team members to establish and
maintain healthier lifestyles.
To provide a benefits program that encourages a
positive culture that is focused on celebrating and
improving the quality of life for all employees”
- Kevin Prior, CEO Fall 2009
Partnership
Wellness Journey Page 26

27. The Finish Line
Questions?
Wellness Journey Page 27