Roger Kirtley, Wellness at Work Conference, June 14, 2010

Wellness

Market Overview

$4,247

$9,860

$3,515$1,543

1999 2009

Employer Contribution

Worker Contribution

131% Premium Increase

128% Worker

Contribution Increase

$13,375

Note: The average worker contribution and the average employer contribution may not add to the average total premium due to rounding.

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2009.

$5,791

Average Health Insurance Premiums 1999-2009

What is Driving the Costs?

Cost Population

80% 10%

90%20%

What is Driving the Costs?

Catastrophic

Chronic

Healthy/At Risk

Cost Population

2%30%

50% 8%

90%20%

Health Risks

• According to the CDC, chronic diseases are the most common and costly of all health problems, but they are also the most preventable. – Four common, health-damaging, but modifiable behaviors -

tobacco use, insufficient physical activity, poor eating habits, and excessive alcohol use - are responsible for much of the illness, disability, and premature death related to chronic diseases.

• We are doing it to ourselves

Health Risks

• For every 100 employees in America– 25 smoke– 17 Binge Drink– 10 have depression– 9 have diabetes– 8 have had a heart attack or stroke

Health Risks

• For every 100 employees in America– 77 Have poor nutritional habits– 68 do not exercise regularly– 59 are overweight or obese– 34 have high cholesterol

Cancer Screenings*

• Cervical cancer screening rate: 79.3%• Colon cancer screening rate: 42.2%• Prostate cancer screening rate: 57.6%• Breast cancer screening rate: 54.9%

– The cost to treat breast cancer:• Early stage: $25,000• Late stage: $125,000

*American Cancer Society

Wellness Options

Answer = Risk Management

Disease Manageme

nt

Wellness

Preventative Benefits

Predictive Modeling

Maternity Manageme

nt

Centers of Excellence

RN Coaching

Wellness Options

• Encourage strong relationship with Internist• Health Risk Assessment• Biometric Screening• Smoking Cessation• Biggest Loser Contest• Financial Incentives

How a company’s approach to health impacts it’s costs

Lyons Companies

• One of the largest independent brokers in the region• Full Service Consulting/Insurance Brokerage for

Property & Casualty and Employee Benefits• Traditional / Alternative Funding / Captive Programs• Partner in Assurex Global

– Represented by 20,000 professionals in over 500 offices around the globe

• Committed to bringing innovative & strategic solutions to the marketplace.

Health Care Reform

Thank You!For more information visitwww.lyonsinsurance.com

Roger D. KirtleyRisk Management Advisor

(302) 472-2955rkirtley@lyonsinsurance.com