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Healthcare Reform’s Impact on Wellness and How to Incentivize Employees to Engage in             Healthy Behavior         ...
About the CHWA• The Corporate Health & Wellness Association  (CHWA), is the first national non-profit, 501(c)(6),  associa...
The Patient Protection and Affordable Care Act• Abbreviated as PPACA• Known also as the ACA or simply “federal  health car...
The Basics of PPACA• People can no longer be denied insurance due to a  preexisting condition.• Anyone not covered by an e...
The Basics of PPACA• The Insurance Exchanges will be done state by  state where individuals and small businesses  can shop...
Effect on Insurance Premiums• It is a common misunderstanding that insurance  premiums will go down as a result of the law...
Effect on Insurance Premiums• Thus people will wait until insurance is needed to  buy, and because pre-existing conditions...
What This Means for Wellness• In order to help these rising costs businesses  are seeing the need to reduce claims.• Welln...
What This Means for Wellness• The government will be establishing programs which  will help companies establish wellness i...
A New Approach• These changes will require a different  approach to how employers approach  healthcare.• The increased pre...
Incentivizing Employees• Any wellness program will be helpful, but if it  is not being used it will not be effective.• The...
Gift Cards• A new trend is the use of gift cards as  incentives.• They are an effective means of getting  employees to eng...
Employee Engagement• Incentives are important for initial  engagement.• These incentives can also be used to continue  to ...
Employee Engagement• Some companies tie giving gift cards to taking  an initial HRA or biometric screening.• Also things l...
The ROI of Wellness• With out any participation, there will be 0 ROI.• Realistic predictions:  – Not see ROI in 1-2 years ...
The ROI of Wellness• National Institute of Healthcare Reform  reports and average ROI of 3.27 to 1 over 3  years.• 2.37 to...
Why Gift Cards?• Can be limited like CVS Select card.  – Does not work when buying cigarettes, alcohol,    and candy  – On...
Why Gift Cards• Still gives employees incentives, without the  problems cash can bring.  – Employees will not feel bad abo...
Gift Cards in Manufacturing• In manufacturing jobs, gift card incentives are  used to motivate employees to engage in  saf...
Unsafe Workplaces in Context• The National Safety Council Reports the  following data.  – There are 3.8 million annual wor...
Manufacturing Incentives Example• A company plays “Safety Bingo” once a  month, and has been accident free for 15  years.•...
Gift Cards in Nonprofits• Many times when one thinks of gift cards and  nonprofit organizations they think of  fundraising...
Gift Cards and Nonprofit Operations• Many nonprofits operate on a shoestring  budget, from donors, grants, and work from  ...
Incentives and Nonprofit Operations• The tools that for-profit businesses use  incentives for, can be used by nonprofits a...
Nonprofit Incentives Example• An environmental advocacy group uses gift  card to “reward teachers and to benefit  students...
Gift Cards in Healthcare• Gift cards are used internally with employees  and externally with patients to drive desired  lo...
Health and Wellness Rewards• Gift cards are frequently given for filing out HRAs to  increase participation.• Rewards are ...
Healthcare Gift Card Examples• The infection control department of a medical  center in Mississippi rewards employees who ...
Gift Cards in Insurance• Gift card in the Insurance industry are used in  many ways:  – A reward for who generates the mos...
Self-Insured Companies• By using incentives to cut medical expenses  and incentivize health and wellness programs  self-in...
Example of Gift Cards in Insurance• A Pennsylvania based health-insurance  provider offers group customers incentives  and...
Gift Cards in Utility and Energy• Gift cards are used by Energy and Utility  companies to gather business.  – Customers ar...
Incentivize “Going Green”• Constellation Energy is giving customers who are using less  energy a gift card to encourage ea...
Customer Service• Just like gift cards are a way to say “thank  you” they can be used to say “sorry as well”  – If an Ener...
Conclusions• In difficult economic times the use of gift  cards is greatly beneficial:  – The employee gets the bonus the ...
Conclusions• The companies who use gift cards as  incentives also get the reduced costs a  healthier workforce brings.
WE ARE A $4-BILLION BUSINESS WITH ICONIC,            LEADING BRANDS
WE HAVE APPROXIMATELY 9,500 EMPLOYEESMeat PlantsBakery PlantsHeadquarters
RELAUNCHED WELLNESS PROGRAM JULY 2011        WITH REDBRICK HEALTH    Phase 1             Phase 2         Phase 3– Biometri...
WELLNESS PROGRAM HIGHLIGHTS YEAR 1• 53% of employees either attended a health screening or a  completed their health asses...
WHAT WAS DIFFERENT WITH RELAUNCH?• Brought in new Vendor – RedBrick Health   • Eliminated ‘Big Brother’ concerns and promo...
WHAT IS COMING IN THE FUTURE?What is Coming in the Future?•Continue strong communication efforts:    o Enhance Spousal Com...
Well-being at SprintBeyond personal health –Helping employees thriveOct. 2, 2012
About Sprint•   At Sprint, our high-performing, inclusive culture thrives on innovation.•   Sprint offers a comprehensive ...
2012 Approach-Wellness Strategy – Creating a             Culture of Health
Incentive Strategy- Creating a Thriving Culture•        Multi-Tiered Approach for various well-being programs that include...
Sprint Alive! Health Advocate          A new service for all employees and eligible                          dependents•  ...
Health Advocate incentive•    All employees received a personalized email as well as a home mailing     for launch of prog...
Personal Health Advocate StatsEmail Open Rates    – Launch emails opened on average at a very high rate of 31.6%    – Firs...
Sprint Get Fit Wellness ChallengeSprint Get Fit Challenge is a 8 week physical activity challenge available for all employ...
Sprint Get Fit Challenge Accomplishments• Employees lost a total of 21,597 pounds – about the  weight of two elephants• Em...
Sprint Get Fit Wellness Challenge- RewardsRewards provided to our employees is a combination of incentives to help them en...
What’s Next• Continue to develop our personal approach to well-being and  trusted program and resources for all• Align our...
About Certified Corporate Wellness Specialist™•   The Certified Corporate Wellness Specialist™ (CCWS) was created for    p...
About Certified Healthcare Reform Specialist™• The program is designed for any Insurance  Professional looking to become a...
About Employer Healthcare and Benefits Congress• To learn more information about corporate  wellness, healthcare reform; a...
Contact Us• If you have any question or comments please  send them to info@wellnessassociation.com
Healthcare Reform’s Impact on Corporate Wellness and How to Incentivize Employees to Engage in Healthy Behavior
Healthcare Reform’s Impact on Corporate Wellness and How to Incentivize Employees to Engage in Healthy Behavior
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Healthcare Reform’s Impact on Corporate Wellness and How to Incentivize Employees to Engage in Healthy Behavior

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This webinar will address health care reform, its effects on the corporate wellness industry, and the use of incentives and new incentive strategies to engage employees. With the changing health care market, a greater focus will be in prevention of disease and in encouraging a healthy labor force. The results of the recent healthcare reform law will have an impact on how health insurance is administered and how wellness programs will operate. New incentive strategies, using gift cards, will be a tool to get employees involved in a wellness program and to actively engage in their well being. With employee and employers working for health, they will not be as susceptible to the effects of healthcare reform.

The webinar will present the following information:

• The Patient Protection and Affordable Care Act and its effects on wellness
• Information about using gift cards as incentives
• Case studies that show the success of gift cards from various industries including Manufacturing, Nonprofit, Healthcare, Insurance, and Utility and Energy.

The complementary webinar, produced by the Corporate Wellness Magazine, on behalf of the Corporate Health and Wellness Association and Healthcare Reform Magazine. We will explore the benefits of incentives programs; whether you want improve efficiency and increase productivity.

Vanessa Cullerton,Senior Employee Wellness Manager of The Hillshire Brands Company (formerly Sara Lee) and Stacey Nelson, Manager of Health and Welfare from Sprint discusses the evolution of their wellness program and the innovative ways they engage employees in offering gifts cards to encourage employee participation.

Published in: News & Politics
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Healthcare Reform’s Impact on Corporate Wellness and How to Incentivize Employees to Engage in Healthy Behavior

  1. 1. Healthcare Reform’s Impact on Wellness and How to Incentivize Employees to Engage in Healthy Behavior Presented by: - Jonathan Edelheit, Editor in Chief of Benefits Live Magazine, incorporating National Healthcare Reform Magazine - Vanessa Cullerton, Senior Manager of Employee Wellness for The Hillshire Brands Company -Stacey Nelson, Manager of Health and Welfare for Sprint and -Edward Shulkin, President of Gift Card Partners, Inc.
  2. 2. About the CHWA• The Corporate Health & Wellness Association (CHWA), is the first national non-profit, 501(c)(6), association focused on health, wellness, prevention, and disease management for employers, employees and their families. Our goal is to promote health and wellness in the workplace and to foster an atmosphere of education and engagement with health and wellness programs in the workplace.
  3. 3. The Patient Protection and Affordable Care Act• Abbreviated as PPACA• Known also as the ACA or simply “federal health care reform.”• Signed into law by President Obama on March 23, 2010.• Most it was upheld by the Supreme Court on June 28th, 2012.
  4. 4. The Basics of PPACA• People can no longer be denied insurance due to a preexisting condition.• Anyone not covered by an employer, Medicare or Medicaid is required to purchase insurance from a private insurer or through the exchanges which will be set up; or is required to pay a fine. – This is the controversial "individual mandate"
  5. 5. The Basics of PPACA• The Insurance Exchanges will be done state by state where individuals and small businesses can shop around for insurance, buy it, and receive a government subsidy if eligible.
  6. 6. Effect on Insurance Premiums• It is a common misunderstanding that insurance premiums will go down as a result of the law, but this is not true.• The fee for not having insurance in 2014 will be $95 for the year, or $7.92 a month. This will increase to $695 or 2.5 percent of income whichever is greater. This makes it cheaper than purchasing the insurance.
  7. 7. Effect on Insurance Premiums• Thus people will wait until insurance is needed to buy, and because pre-existing conditions can not be turned down they will get it. They will also be able to purchase this at the same rate healthy people are purchasing it.• The premiums of the people who are paying for insurance will have to give a larger stake in the premiums.
  8. 8. What This Means for Wellness• In order to help these rising costs businesses are seeing the need to reduce claims.• Wellness programs are the answer to this, besides just the benefits of a healthier workforce.
  9. 9. What This Means for Wellness• The government will be establishing programs which will help companies establish wellness initiatives.• The program will create tax incentives for employees who create and utilize wellness.• The federal reimbursement plan is an employment- based plan which directs that employers must implement a program to generate cost savings for employees with chronic or high-cost diseases.
  10. 10. A New Approach• These changes will require a different approach to how employers approach healthcare.• The increased premiums, will make it more expensive for an employer offering their employees health insurance.
  11. 11. Incentivizing Employees• Any wellness program will be helpful, but if it is not being used it will not be effective.• There are many ways to incentivize employee participation in wellness, such as cash incentives and rebates
  12. 12. Gift Cards• A new trend is the use of gift cards as incentives.• They are an effective means of getting employees to engage in wellness.
  13. 13. Employee Engagement• Incentives are important for initial engagement.• These incentives can also be used to continue to boost participation as well, one company reports an increase in participation from 15 to 39 percent with the inclusion of gift cards.
  14. 14. Employee Engagement• Some companies tie giving gift cards to taking an initial HRA or biometric screening.• Also things like living healthier, health coaching, using online tools, and tobacco cessation.
  15. 15. The ROI of Wellness• With out any participation, there will be 0 ROI.• Realistic predictions: – Not see ROI in 1-2 years – Will break even in 2nd or 3rd year – Will see "Reasonable returns" in 4th and 5th year and each subsequent year
  16. 16. The ROI of Wellness• National Institute of Healthcare Reform reports and average ROI of 3.27 to 1 over 3 years.• 2.37 to 1 reduced absenteeism costs• "Ones who do everything right" hard ROI between 1.25 to 1 and 4 to 1.
  17. 17. Why Gift Cards?• Can be limited like CVS Select card. – Does not work when buying cigarettes, alcohol, and candy – Only for "Healthy" items• Can also be given to healthy food options like Subway.
  18. 18. Why Gift Cards• Still gives employees incentives, without the problems cash can bring. – Employees will not feel bad about receiving a gift card with a $10 value – However, an employee may feel slighted by receiving a $10 bill.
  19. 19. Gift Cards in Manufacturing• In manufacturing jobs, gift card incentives are used to motivate employees to engage in safer behaviors.• If this is done systematically with proper measurement methods and a culture of preventing accidents; the company will realize ROI in increased productivity and reduced healthcare premiums
  20. 20. Unsafe Workplaces in Context• The National Safety Council Reports the following data. – There are 3.8 million annual workplace injuries in the U.S., 90,000 of which cause permanent damage. – The average cost per injury is $28,000 for a grand total of $130 billion nationally.
  21. 21. Manufacturing Incentives Example• A company plays “Safety Bingo” once a month, and has been accident free for 15 years.• The same company also rewards employees who they see using the personal protective equipment in the proper manner.
  22. 22. Gift Cards in Nonprofits• Many times when one thinks of gift cards and nonprofit organizations they think of fundraising efforts.• These “Scrip” sell cards to companies in order to fundraise. The Scrip give a percentage of gift card purchases to charities while the consumer spends the gift card normally.
  23. 23. Gift Cards and Nonprofit Operations• Many nonprofits operate on a shoestring budget, from donors, grants, and work from volunteers.• Gift cards in this sense can thank and motivate their donors.
  24. 24. Incentives and Nonprofit Operations• The tools that for-profit businesses use incentives for, can be used by nonprofits as well. These are things like: – Attracting talent – Increasing productivity – Maintaining/increasing goals
  25. 25. Nonprofit Incentives Example• An environmental advocacy group uses gift card to “reward teachers and to benefit students who participate in one of our field trip educational programs” The teachers are given CVS gift cards with which the photos taken at the sandy beach shore can be developed. For many of the students it is their first time at the beach.
  26. 26. Gift Cards in Healthcare• Gift cards are used internally with employees and externally with patients to drive desired long term goals.• Gift cards for health and wellness programs are also the second largest category of gift cards behind “general rewards” which are anniversary and holiday gifts.
  27. 27. Health and Wellness Rewards• Gift cards are frequently given for filing out HRAs to increase participation.• Rewards are also given out as a points system for activities like joining a gym, reaching a milestone in weight loss, lowering blood pressure and taking a walk during a break.• As healthcare costs continue to rise, so will the use of these wellness incentives.
  28. 28. Healthcare Gift Card Examples• The infection control department of a medical center in Mississippi rewards employees who routinely and properly wash their hands.• A medical school in California conducts patient surveys. The person who conducts the most surveys gets a gift card every three months, participants are given a gift card of a smaller amount.
  29. 29. Gift Cards in Insurance• Gift card in the Insurance industry are used in many ways: – A reward for who generates the most leads – Gifts for referrals – Given to customers who sign new policies or keep an appointment with a representative – A reward for completion of a customer who completes a questionnaire
  30. 30. Self-Insured Companies• By using incentives to cut medical expenses and incentivize health and wellness programs self-insured companies have been able to fight the 8 – 10% healthcare inflation rate.• Some have been able to reduce this to as little as 3%
  31. 31. Example of Gift Cards in Insurance• A Pennsylvania based health-insurance provider offers group customers incentives and rewards to get employees active in their health and wellness.
  32. 32. Gift Cards in Utility and Energy• Gift cards are used by Energy and Utility companies to gather business. – Customers are given a promo code when switching utility companies to receive a gift card – Customers who refer a friend are given a gift card as a reward – Customers who lock in a rate are given a gift card reward
  33. 33. Incentivize “Going Green”• Constellation Energy is giving customers who are using less energy a gift card to encourage earth friendly energy use. – Customers post a photo online as to why they are an “energy saving hero” and the winner receives a gift card• Gift cards are also used to get customers to switch to paperless online payment, which further helps the environment.• These are useful ways to increase company branding as an organization which cares for the environment
  34. 34. Customer Service• Just like gift cards are a way to say “thank you” they can be used to say “sorry as well” – If an Energy and Utility company has billing problem or meter error, it is an effective way to apologize for the mistake. – This is a pleasant surprise to the customer, and enhances the customer service experience.
  35. 35. Conclusions• In difficult economic times the use of gift cards is greatly beneficial: – The employee gets the bonus the gift card provides – The employer get the added productivity – The company which issues the gift card gets the added business
  36. 36. Conclusions• The companies who use gift cards as incentives also get the reduced costs a healthier workforce brings.
  37. 37. WE ARE A $4-BILLION BUSINESS WITH ICONIC, LEADING BRANDS
  38. 38. WE HAVE APPROXIMATELY 9,500 EMPLOYEESMeat PlantsBakery PlantsHeadquarters
  39. 39. RELAUNCHED WELLNESS PROGRAM JULY 2011 WITH REDBRICK HEALTH Phase 1 Phase 2 Phase 3– Biometric – Personal – Online Tools screening HealthMap – Health Record– Health – Health – Reward Bank assessment Programs– Personal profile – Recommended Care
  40. 40. WELLNESS PROGRAM HIGHLIGHTS YEAR 1• 53% of employees either attended a health screening or a completed their health assessment (from less than 5% in 2010);• 35% of employees that completed their health assessment enrolled in a program (e.g. telephonic, online or physical activity tracker);• Visited all locations with > 50 employees for biometric health screening events – two locations had nearly 70% participation;• The 1st physical activity and weight loss challenges launched in January 2012, on average participants tracked 6 hours of physical activity and lost 1 pound per week;• The WINNING TEAM lost an average of 25 pounds each!
  41. 41. WHAT WAS DIFFERENT WITH RELAUNCH?• Brought in new Vendor – RedBrick Health • Eliminated ‘Big Brother’ concerns and promoted Privacy of Information;• Grass roots communication – implemented location Champions; • Each location had a minimum of 5 Champions (outside of HR) to help promote the program;• Moved from premium discounts to Gift Cards; • While we kept the incentive amounts the same; employees valued the immediate reward for the completion of tasks;
  42. 42. WHAT IS COMING IN THE FUTURE?What is Coming in the Future?•Continue strong communication efforts: o Enhance Spousal Communication•Considerations for 2014 and Beyond: o Results based measurement factorsSurcharge/incentives for value based design and programs.
  43. 43. Well-being at SprintBeyond personal health –Helping employees thriveOct. 2, 2012
  44. 44. About Sprint• At Sprint, our high-performing, inclusive culture thrives on innovation.• Sprint offers a comprehensive range of wireless and wireline communications services, bringing the freedom of mobility to consumers, businesses and government users.• Sprint is widely recognized for developing, engineering and deploying innovative technologies, including: • The first wireless 4G service from a national carrier in the United States • Offering industry-leading mobile data services, leading prepaid brands, including Virgin Mobile USA, Boost Mobile and Assurance Wireless • Instant national and international push-to-talk capabilities• Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nations greenest companies, the highest of any telecommunications company.
  45. 45. 2012 Approach-Wellness Strategy – Creating a Culture of Health
  46. 46. Incentive Strategy- Creating a Thriving Culture• Multi-Tiered Approach for various well-being programs that include • Points earned via Sprint’s recognition portal – Opportunity to purchase rewards on portal such as merchandise, gift cards, etc. • Gift Cards donated by Sprint partners or provided by Sprint • Premium Discounts towards medical/prescription drug premiums • Funding towards health reimbursement accounts • Donations contributed to Sprint Charities • Donation of Sprint product/services or vendor donated product/services • Onsite incentives for participation or completion of events- healthy food; drawing prizes 48
  47. 47. Sprint Alive! Health Advocate A new service for all employees and eligible dependents• Sprint Alive!, Sprint’s well-being program administered by Optum launched a new concierge health and well-being service to it’s employees and health plan members, with the roll out running from July 17 th through September 18th• Creates a personal approach• Health Advocates are available to help Sprint employees and their families navigate the health care system by: • Finding high quality providers and scheduling appointments • Researching health and benefit questions • Doing the leg-work to make life a little easier! 49
  48. 48. Health Advocate incentive• All employees received a personalized email as well as a home mailing for launch of program• As part of the roll out, employees may have received an incentive to earn a $5.00 Starbucks gift card and chance to win a Tablet.• Employees and dependents working with their Health Advocate will become aware of programs available to them and the rewards provided for completion of online and telephonic programs . 50
  49. 49. Personal Health Advocate StatsEmail Open Rates – Launch emails opened on average at a very high rate of 31.6% – First Reminder emails are opening at a rate of 24.7% – Second Reminder emails are opening at a rate of 19.1%Health Advocate Activity – The Health Advocate program has received 1,093 enrollments to-date, 92% to goal to date – More than 370 individuals have taken advantage of the incentives (gift cards) – As employees enroll in our various Sprint Alive! programs they will be eligible for Sprint e-point incentives for our Recognition portal for completion of programs. 51
  50. 50. Sprint Get Fit Wellness ChallengeSprint Get Fit Challenge is a 8 week physical activity challenge available for all employees.•25% company wide participation (9,811 employees) • 54% repeat enrollees from 2011 Sprint Get Fit Challenge – 18% high risk participants•49% completion rate (4813 participants tracked through the last round)•$969,722 million in real-time value was generated throughout the challenge • 78% (or $753,792) of real-time value were generated among challenge completers•10% of participants were aligned to an e-coach – 1% worked with a personal coach – 9% worked with a team coach•89.7% program satisfaction•92.8% of participants plan to join a similar program again in the future 52
  51. 51. Sprint Get Fit Challenge Accomplishments• Employees lost a total of 21,597 pounds – about the weight of two elephants• Employees walked a combined 2,364,674,204 steps – approximately the distance from the earth to the moon five times• Employees exercised, in total, for 11,267,209 minutes – more than 21 years 53
  52. 52. Sprint Get Fit Wellness Challenge- RewardsRewards provided to our employees is a combination of incentives to help them engage in the providedprogram. Some of the rewards are provided by Sprint vendor partners or Sprint sponsored.Some examples:*Sonicare Electric Toothbrushes*Waterpicks*North Face Gift Card*Binocular*Spa Gift cards*Kindle Fire /Touch*Body Media devices*Garmin Forerunner*Sports Authority Discount*Sprint phones/shoes*e-points provided for Sprint recognition portal*Charity Contribution to Feeding AmericaSprint’s approach is to provide a variety of rewards to engage employees to lead a healthierlifestyle as illustrative above. 54
  53. 53. What’s Next• Continue to develop our personal approach to well-being and trusted program and resources for all• Align our well-being strategy to the needs of the organization as it changes• Monitor and develop our incentive strategy to continue to engage employees/eligible dependents to have a more active role in participating and completing programs for rewards• Communication and more CommunicationOur goal is to make Sprint a healthy place to work by aligning our vendor partners, continued focus on well-being and creating the right incentive approach for our employees and dependents. 55
  54. 54. About Certified Corporate Wellness Specialist™• The Certified Corporate Wellness Specialist™ (CCWS) was created for professionals focused on practical training and knowledge to effectively manage a wellness program. It is the result of demand from employers around the country who wanted a specialized certification program offered by a non- partisan 3rd party group. The certification is designed for Human Resource and Benefits directors, Agents, Brokers, or Consultants, Insurance or Healthcare Industry professionals. The program is designed to help you understand best practices in corporate wellness and to keep understanding them through continuing education, how to tailor a program to your organization, and how to choose the right vendor that will provide an ROI for specific corporate culture. The certification program consists of eight hours of training, and successful completion of a 100+ question exam. The program also has professional experience requirements, and continuing education.
  55. 55. About Certified Healthcare Reform Specialist™• The program is designed for any Insurance Professional looking to become an expert in Healthcare Reform Legislation, have the ability to interpret new rules and comprehend the PPACA by the HHS and other government sectors.
  56. 56. About Employer Healthcare and Benefits Congress• To learn more information about corporate wellness, healthcare reform; and also about voluntary benefits and self-funding please attend the EHBC on October 24-26, 2012 at the Westin in Ft. Lauderdale.• For more information visit: http://employerhealthcarecongress.com/
  57. 57. Contact Us• If you have any question or comments please send them to info@wellnessassociation.com

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