Employer wellness program. Case study

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1 Employer wellness program Case study

2 Employer wellness program Case Study Empower and engage employees with wellness programs! Keeping employees healthy can contribute to the positive performance of your organization and lower your costs. Studies show that more than 75 percent of employers healthcare costs and productivity are related to employee lifestyle choices*. That s a good reason to launch a wellness program backed by Blue Shield support. We like to share the success our other group customers have experienced: In May 2011, Blue Shield launched a worksite wellness program for a public health agency of 1,300 state employees. All of their employees were eligible to participate in our wellness program regardless of whether they had Blue Shield coverage. The employer s concerns were similar to everyone else s: Help our employees stay healthy and keep our costs down! After consultation with the employer and a careful review of their employees needs, we helped this group identify their goals and created a wellness program that fit their population and workplace culture. Their goals: Boost employee participation in the Wellness Assessment and onsite biometric screenings by 50 percent and increase enrollment in wellness programs. Our solution for strong participation: Right balance of incentives, active employer engagement, and peer support to motivate participation. We designed a program to deliver: Incentives offered to all employees who took the online Wellness Assessment and biometric screening, with doubled rewards if 50 percent of all employees participated Employee involvement inspired by managers who participate in onsite activities and champion wellness in the workplace A dynamic environment of peer support, working together for a common goal and greater rewards Friendly peer competition through activity challenges (e.g., weight-loss program) Fun but informative onsite and online activities that encourage employees Ongoing promotions through eye-catching signage and materials (merit stickers and progress charts) to increase awareness and get employees excited about their well-being all year-round 1 blueshieldca.com

3 Fast success with results: Within the first year, the employer was extremely pleased with the results, which exceeded their own expectations. For example, over 60 percent of the employees who enrolled in and completed the onsite weight-loss program lost a collective total of 840 pounds! Many employees said they were empowered to take more responsibility for their own health. We continue to work with them to monitor and evaluate their outcome and progress. While employees found the activities fun and exciting, the program also fostered a team spirit that boosted morale. They shared personal experiences with each other and were more committed to success as a result. Goals (participation) Results Health risk assessment (HRA) and biometric screenings 50% 65% Activity challenge and weight-loss programs 50% 65% Employee satisfaction 91% of employees surveyed were highly satisfied with Blue Shield s wellness program. A healthier California starts with Blue Shield: Wellvolution When it comes to building a culture of wellness, we at Blue Shield consider ourselves to be a model of success. In 2008, we launched an innovative, comprehensive onsite wellness program for our own employees called Wellvolution. To learn more about our experience and how we tackled our personal challenges such as eating right, staying active, and losing weight, read our story in the Blue Shield Wellness Program case study (A44130) or visit blueshieldca.com/shieldwellness. 2

4 Healthy Lifestyle Rewards: Employees can take control of their health* Available to most employer groups, Blue Shield s integrated online program Healthy Lifestyle Rewards program can make an impact on the health of a business. Since 2006, we have collected data to assess the effectiveness of our Healthy Lifestyle Rewards program for developing healthy habits and reaching health goals. We examined the success of Healthy Lifestyle Rewards across our customers who use the program through a cohort of members who completed the online Wellness Assessment in 2008 and 2011, to see whether their risk profiles had changed. Lower risks factors score big! Studies show that modifiable risk factors can cause 75 percent of the average group s healthcare spending. These risk factors include diet, exercise, stress reduction, tobacco cessation, alcohol moderation, preventive screening, and others. The chart below points to a decrease in risk factors for the participants in key categories: depression, stress, tobacco use, and lack of exercise. When you reduce these health risks, you ll have a healthier workforce that can contribute more to the performance of your organization. The average Health Risk Assessment scores improved by five points between 2008 and Improvement in risk scores means lowering the number of risk factors for an individual, which results in higher scores. Participants with risk factors ,514 7,471 4,157 3, ,851 1,412 Depression Stress Tobacco use No exercise The number of individuals with three or more risk factors decreased by 6.2% while the number of individuals with two or less risk factors increased by 7.2% representing a significant migration in the population from high to low risk. On average, individuals with three or more risk factors will consume four times the healthcare spending, miss two more days of work, and have three additional visits to a physician in the next 12 months as a result of these modifiable lifestyle risks. 3

5 Improved risk stratification Improved risk stratification can positively impact overall healthcare costs, including medical claims, time away from work, and presenteeism. Based on industry accepted data, the risk reduction in this study included an estimated savings of $2.7 million in medical costs, $400,000 from time-away-fromwork costs, and $3 million related to presenteeism (see following chart). Our findings also demonstrate that Healthy Lifestyle Rewards can help employers focus on modifiable health risk factors, plan cost-effective programs, and encourage and motivate healthier behaviors. Financial impact of risk stratification (in millions) Medical costs Time away from work Presenteeism costs $107.3 $68.2 $104.3 $65.5 Estimated savings $2.7 million Costs per person 0-2 risk factors = $3, risk factors = $5, risk factors = $9,385 $12.5 $12.1 Estimated savings $400,000 Costs per person 0-2 risk factors = $ risk factors = $ risk factors = $1,732 Estimated savings $3 million Costs per person 0-2 risk factors = $6, risk factors = $8, risk factors = $11,542 * WebMD: Respondents taken from the entire Blue Shield of California book of business: 14,790 respondents completed Wellness Assessments in both 2008 and Study did not include federal employees, some employees of national accounts, and individual Medicare members. The Centers for Disease Control and Prevention (CDC) at 4

6 Hear what our members are saying about Healthy Lifestyle Rewards Here are some of the stories our members have shared with us about their personal health challenges, and how through our tools and support, they were able to make smarter decisions and live healthier. Quotes from our members I have lost a substantial amount of weight and my depression is all but gone. I feel great and happier. At first, I ve lost five pounds because I was motivated by earning the incentive. Then, I felt I should do more to help myself since the program invested in my health. Now I hope to lose five more pounds next month. The wellness screening showed me that I had very high blood pressure. Since then, I ve changed my diet, gone to the doctor, and have been put on medication, and it s come down considerably! Blue Shield members 5

7 Why wellness matters How can your company benefit from workplace wellness programs? Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year.* The indirect costs of poor health including absenteeism, presenteeism, disability, and reduced work output may be even higher than direct medical costs. Evidence indicates that workplace health and wellness programs have the potential to promote healthy behaviors, improve employees health knowledge and skills, and help them get necessary health screenings, immunizations, and follow-up care. When done effectively using evidence-based best practices, comprehensive worksite health programs can yield on average a $3 return on every dollar spent.* When it comes to fighting rising healthcare costs, it pays to invest in a wellness program. What s your biggest challenge? To identify your company s current state of health, complete our online workplace wellness checklist at blueshieldca.com/shieldwellness. Then contact your broker or Blue Shield representative to see how we can develop a successful wellness program that will get your population active and involved in improving their health. Let s build a culture of wellness to help you boost productivity and reduce healthcare costs. For news and helpful tips on how to get your employees excited about their wellness, go to blueshieldca.com/shieldwellness. You can visit this site often to get the latest information you need from Blue Shield. All employers can stand to gain from reduced health insurance costs, worker absenteeism, and other improvements in efficiency all associated with a healthier workforce. Call Blue Shield today to learn more about our wellness programs. * The Centers for Disease Control and Prevention (CDC) at Potential Savings through Prevention of Avoidable Chronic Illness Among CalPERS State Active Members by Timothy A. Waidmann, Barbara A. Ormond, and Brenda C. Spillman, Health Policy Center, Urban Institute, April

8 An independent member of the Blue Shield Association A44123 (5/12)

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