Upload
yvette-salas
View
28
Download
0
Embed Size (px)
DESCRIPTION
A Business Case for Wellness Sabre’s Success Story. Our businesses. Transacted $70 billion in gross travel sales in 2005 though 50,000 travel agency locations in 113 Countries Travelocity sold $7.4 billion of travel in 2005 We run reservation/operation systems for more than 100 airlines - PowerPoint PPT Presentation
Citation preview
Connecting people with the world’s greatest travel possibilities.
Confidential
A Business Case for WellnessSabre’s Success Story
2 Confidential
Our businesses
• Transacted $70 billion in gross travel sales in 2005 though 50,000 travel agency locations in 113 Countries
• Travelocity sold $7.4 billion of travel in 2005
• We run reservation/operation systems for more than 100 airlines
• 200+ airlines use our decision support products
• The Best Team in Travel: 8,800 people in 45 countries
3 Confidential
Wellness is a competitive issue
• Financial• Unsustainable US health care cost trend
• Need top talent at the top of their game when at work• Physical and psychological readiness
• Keep Texas and the US competitive globally• Globally distributed company with access to global talent pool
4 Confidential
Call to action: Financial healthIs the current model sustainable?
National Inflation (BLS)
$723
$878
$596
$663
$796
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2002 2003 2004 2005 2006 Proj 2007 Proj
PE
PM
Me
dic
al/R
x C
laim
s
National Inflation (BLS)
$523
National Trend Applied to 2002 Claims
5 Confidential
Call to action: US lifestyle choicesIs Texas producing top athletes?
6 Confidential
Call to action: Psychological healthAre our people playing at the top of their game?
7 Confidential
A holistic solution
• Benefit plan cost management• Plan design• Smart purchasing• Condition management • Consumerism
• Wellness program
• Employee engagement initiative
• and more…
8 Confidential
Wellness Program Components
Get Their Attention
Make It Personal
Tools & Resources
Make It Fun
Create Accountability
Change the Culture • Leadership, language, lifestyle
• Tie participation/results to premiums
and other rewards
• Challenges, committees, clubs
• On-line resources, wellness fairs,
on-site services, seminars,
programs
• Personal health awareness and
preventive care incentives
• Promotion, education, listening
9 Confidential
Extraordinary Results
• $10.5M per year cost avoidance in both 05 and 06 (38% of 06 budget)
• $46M cumulative cost avoidance over 5 years (175% of ave annual budget)
• Employee health risk factors dropped significantly
$796
$663
$596
$878
$723
$575
$498 $521 $505
$607$523
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2002 2003 2004 2005 2006 Proj 2007 Proj
PE
PM
Med
ical
/Rx
Cla
ims
National Inflation (BLS)
Sabre Actual
What Sabre’s claims would be with nat’l avg trend and Sabre’s 2002 plan design
What Sabre’s claims would be with nat’l avg trend and Sabre’s 2002 plan design
Sabre’s actual claims with 2006 and 2007 claims
forecast
Sabre’s actual claims with 2006 and 2007 claims
forecast
10 Confidential
Other indicators look good
Inpatient Utilization Metrics
2004Actual
2005 Actual
% Change
Number of Days
3,035 2,511 -17.27%
Days per 1000
315 264.7 -15.97%
Net Paid per Day
$2,018 $2,426 20.22%
Number of Admissions
627 538 -14.19%
Admissions per 1000
65.1 56.7 -12.90%
Net Paid per Admission
$9,770 $11,321 15.88%
Healthcare Cost Category Metrics PMPM
2004 Actual
2005 Actua
l%
Change
Facility Inpatient
$29.85 $23.3
8 -
21.68%
Facility Outpatient
$33.68 $25.0
7 -
25.56%
Physician - Primary Care
$11.62 $9.17 -
21.08%
Physician - OB/GYN
$5.33 $3.13 -
41.28%
Physician - Specialty
$28.40 $23.3
0 -
17.96%
Allied Health $4.38 $3.06 -
30.14%Note: High cost claimants (>$100,000 in paid claims) are included.
11 Confidential
Lessons learned
• Wellness pays
• Need a holistic, integrated solution
• Too many options, too many choices• Information overload and inaction
• Wellness resources are ubiquitous but often rudimentary• What’s next?
• Need greater integration and alignment of external systems • Integrated wellness model versus fragmented disease model• Reinforcement at home and in the community
• Stakes are rising• Most people need something at stake to act• Personal accountability and compliance is the next big hurdle
12 Confidential
Travelocity’s Roaming Gnome is in the program…