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Successful Engagement Strategies
and Return on Investment
Improving Worksite Health
Ron Z. Goetzel, Ph.D. Emory University & Truven Health Analytics
Maryam J. Tabrizi, M.S. Truven Health Analytics
• Describe the main findings from the HERO II study recently published in
Health Affairs examining the relationships between ten modifiable health
risk factors and medical cost
• Demonstrate an understanding on how increasing engagement can
improve return on investment (ROI)
• Describe ways to increase engagement in worksite health promotion
programs
2
LEARNING OBJECTIVES
Truven Health Analytics, in partnership with the Emory University Institute
for Health and Productivity Studies (IHPS), conducts empirical research on
the relationship between employee health and work-related productivity,
our research helps inform public and private decision makers on issues
related to health and productivity management (HPM)
OUR MISSION: To bridge the gap between academia, the business
community, and healthcare policy world by bringing academic resources
into policy debates and day-to-day business decisions, and bringing health
and productivity management issues into academia
3
BACKGROUND
THINK ABOUT IT…BEFORE GOING BANKRUPT… WHAT DID KODAK THINK AMERICANS WANTED?
4
Ref: Asch and Volpp, NEJM, 367:10, Sep. 6, 2012, 888
WHAT DID AMERICANS REALLY WANT?
5
WHAT DOES THE HEALTHCARE INDUSTRY THINK AMERICANS WANT—MORE HEALTH CARE?
6
OR MORE HEALTH?
7
WHERE IS THE VALUE IN HEALTH CARE?
8
WHAT ARE WE GETTING FOR OUR MONEY
9
10
WHAT PROBLEM ARE WE ATTEMPTING TO SOLVE? WE’RE SPENDING A BOATLOAD OF MONEY ON SICK CARE
• The United States spent $2.59 trillion in
healthcare in 2010, or $8,402 for every man,
woman and child.
• Government paid $1.2 trillion (45% of total),
private businesses financed $534 billion (21%).
Employers contributed 77% to health insurance
premiums.
• Health expenditures as percent of GDP:
7.2 % in 1970
17.9 in 2010
19.3% in 2019 (est)
Source: Martin et al., Health Affairs, 31:1, January 10, 2012, 208
IT’S NOT JUST THE EMPLOYER’S PROBLEM EMPLOYERS’ AND EMPLOYEES’ COSTS ARE RISING RAPIDLY
11
2005 2010 Percent
Increase
Worker Contribution $2,713 $3,997 47%
Employer Contribution $8,167 $9,773 20%
Total $10,880 $13,770 27%
Average Annual Health Insurance Premiums and
Worker Contributions for Family Coverage, 2005-2010
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2005-2010. http://ehbs.kff.org/
12
IT SEEMS SO LOGICAL…
If you improve the health and well being of your employees…
…quality of life improves
…health care utilization is reduced
…disability is controlled
…productivity is enhanced
SEEMS LIKE A NO BRAINER – RIGHT?
13
14
WHAT IS THE EVIDENCE BASE?
• A large proportion of diseases and disorders is preventable. Modifiable health risk
factors are precursors to a large number of diseases and disorders and to
premature death (Healthy People 2000, 2010, Amler & Dull, 1987, Breslow, 1993,
McGinnis & Foege, 1993, Mokdad et al., 2004)
• Many modifiable health risks are associated with increased health care costs
within a relatively short time window (Milliman & Robinson, 1987, Yen et al., 1992,
Goetzel, et al., 1998, Anderson et al., 2000, Bertera, 1991, Pronk, 1999)
• Modifiable health risks can be improved through workplace sponsored health
promotion and disease prevention programs (Wilson et al., 1996, Heaney &
Goetzel, 1997, Pelletier, 1991, 1993, 1996, 1999, 2001, 2005, 2009, 2011)
• Improvements in the health risk profile of a population can lead to reductions in
health costs (Edington et al., 2001, Goetzel et al., 1999)
• Worksite health promotion and disease prevention programs save companies
money in health care expenditures and produce a positive ROI (Johnson &
Johnson 2002, Citibank 1999-2000, Procter and Gamble 1998, Chevron 1998,
California Public Retirement System 1994, Bank of America 1993, Dupont 1990,
Highmark, 2008, Johnson & Johnson, 2011)
LEADING A HEALTHY AND PRODUCTIVE LIFE – NOT EASY
15
GOOD NEWS – WORKSITE HEALTH PROMOTION WORKS!
16
CDC COMMUNITY GUIDE TO PREVENTIVE SERVICES REVIEW – AJPM, FEBRUARY 2010
17
18
SUMMARY RESULTS AND TEAM CONSENSUS
Outcome
Body of
Evidence
Consistent
Results
Magnitude of
Effect Finding
Alcohol Use 9 Yes Variable Sufficient
Fruits & Vegetables
% Fat Intake
9
13
No
Yes
0.09 serving
-5.4%
Insufficient
Strong
% Change in Those
Physically Active
18 Yes +15.3 pct pt Sufficient
Tobacco Use
Prevalence
Cessation
23
11
Yes
Yes
–2.3 pct pt
+3.8 pct pt
Strong
Seat Belt Non-Use 10 Yes –27.6 pct pt Sufficient
19
Outcome
Body of
Evidence
Consistent
Results Magnitude of Effect Finding
Diastolic blood pressure
Systolic blood pressure
Risk prevalence
17
19
12
Yes
Yes
Yes
Diastolic:–1.8 mm Hq
Systolic:–2.6 mm Hg
–4.5 pct pt
Strong
BMI
Weight
% body fat
Risk prevalence
6
12
5
5
Yes
No
Yes
No
–0.5 pt BMI
–0.56 pounds
–2.2% body fat
–2.2% at risk
Insufficient
Total Cholesterol
HDL Cholesterol
Risk prevalence
19
8
11
Yes
No
Yes
–4.8 mg/dL (total)
+.94 mg/dL
–6.6 pct pt
Strong
Fitness 5 Yes Small Insufficient
SUMMARY RESULTS AND TEAM CONSENSUS
20
SUMMARY RESULTS AND TEAM CONSENSUS
Outcome
Body of
Evidence
Consistent
Results
Magnitude of
Effect Finding
Estimated Risk 15 Yes Moderate Sufficient
Healthcare Use 6 Yes Moderate Sufficient
Worker Productivity 10 Yes Moderate Strong
WHAT ABOUT ROI? CRITICAL STEPS TO SUCCESS
Reduced Utilization
Risk Reduction
Behavior Change
Improved Attitudes
Increased Knowledge
Participation
Awareness
Financial ROI
21
HEALTH AFFAIRS ROI LITERATURE REVIEW Baicker K, Cutler D, Song Z. Workplace Wellness Programs Can Generate Savings. Health Aff (Millwood). 2010; 29(2). Published online 14 January 2010.
22
RESULTS - MEDICAL CARE COST SAVINGS
Description N Average ROI
Studies reporting costs and
savings
15 $3.37
Studies reporting savings only 7 Not Available
Studies with randomized or
matched control group
9 $3.36
Studies with non-randomized or
matched control group
6 $2.38
All studies examining medical
care savings
22 $3.27
23
RESULTS – ABSENTEEISM SAVINGS
Description N Average ROI
Studies reporting costs and
savings
12 $3.27
All studies examining
absenteeism savings
22 $2.73
24
J&J STUDY – HEALTH AFFAIRS, MARCH 2011
25
HEALTH RISKS – BIOMETRIC MEASURES -- ADJUSTED
Results adjusted for age, sex, region * p<0.05 ** p<0.01
26
HEALTH RISKS – HEALTH BEHAVIORS -- ADJUSTED
Results adjusted for age, sex, region * p<0.05 ** p<0.01
27
HEALTH RISKS – PSYCHOSOCIAL -- ADJUSTED
Results adjusted for age, sex, region * p<0.05 ** p<0.01
28
ADJUSTED MEDICAL AND DRUG COSTS VS. EXPECTED COSTS FROM COMPARISON GROUP
Average Savings 2002-2008 = $565/employee/year
Estimated ROI: $1.88 - $3.92 to $1.00
29
HERO STUDY – FIRST PUBLISHED IN 1998
30
31
UPDATED STUDY PUBLISHED IN 2012
HERO STUDY UPDATE: November 2012
1998 2012
Data collection period 1990-1995 2005-2009
Claims data (MarketScan®) Medical Medical and Pharmacy
Enrollment Health Plan Health Plan
HRA StayWell StayWell
“N” Employees 46,026 92,486
Person Years 113,963 272,834
Methods Truven Health/HERO Truven Health/HERO (enhanced)
Publication JOEM Health Affairs
Sponsor HERO ASH/HealthyRoads
32
VARIABLES
• Outcome Variables
– Annualized medical utilization and expenditures
• Total allowed charges (inpatient, outpatient, and pharmaceutical),
including both the employer and employee shares of costs
• Costs were inflation-adjusted to 2009 U.S. dollars using the
general Consumer Price Index from the Bureau of Labor
Statistics
• Predictors- Health Risks
Alcohol use Body weight, height, BMI
Tobacco use Diet/nutrition
Stress level Physical activity
Depression Blood glucose
Blood pressure (systolic and diastolic)
Total Cholesterol
33
DESCRIPTIVE RESULTS SUMMARY
High Risk Category Prevalence: HERO I Prevalence: HERO II
Poor Exercise Habits 32% 36%
Obesity 20% 32%
Poor Nutritional Habits 20% 64%
High Stress 19% 17%
Current Tobacco User 19% 22%
High Cholesterol 19% 10%
High Blood Glucose 5% 10%
High Alcohol Use 4% 5%
High Blood Pressure 4% 8%
Depression 2% 11%
34
RISK-COST IMPACTS- HERO II
35
EXHIBIT 1 Average Unadjusted And Adjusted Medical Expenditures, In 2009 Dollars, By Risk
Levels
Risk measure
Risk
level
Unadjusted
means ($)
Adjusted
means ($)
Unadjusted
difference
(%)
Adjusted difference
(% )
Depression High 6,207 6,738 59.1 48.0
Lower 3,902 4,553
Blood glucose High 6,532 6,849 70.0 31.8
Lower 3,842 5,196
Blood pressure High 5,264 5,734 27.4 31.6
Lower 4,132 4,356
Body weight High 4,956 5,078 41.7 27.4
Lower 3,498 3,988
Tobacco use High 4,192 4,184 10.8 16.3
Lower 3,784 3,597
Physical inactivity High 4,477 4,582 26.6 15.3
Lower 3,537 3,976
Stress High 5,024 5,249 13.0 8.6
Lower 4,444 4,836
Cholesterol High 4,780 4,913 2.0 -2.5
Lower 4,688 5,037
Nutrition and eating
habits High 3,245 3,261
-23.2 -5.2
Lower 4,226 3,440
Alcohol consumption High 3,857 3,843 -3.94 -9.48
Lower 4,015 4,246
COST IMPACTS: HERO I VS. HERO II
Difference in Medical Expenditures: High-Risk vs. Lower-Risk Employees
- 20
0
20
40
60
80
100
HERO
HERO II
Pe
rce
nt
36
HERO II: IMPACT OF COEXISTING MULTIPLE RISK FACTORS ON COST
37
with multiple risk factors
Without any of the risk factors %differerence
High risk for heart disease $10,134 $3,232 213.57%
High risk for stroke $6,137 $3,786 62.09%
High risk for psychosocial problems $6,165 $3,838 60.62% Risk-free individual is estimated to have medical expenditures of $3,207
Risks for heart disease include: tobacco use, high blood pressure, high blood glucose, high cholesterol, lack of exercise, obesity and stress
Risks for stroke include: tobacco use, high blood pressure, high cholesterol, and stress
Risks for psychosocial problems include: stress and depression
37
38
Estimated Effect of Each Risk Category on Annual Medical Expenditures, Independent of All other Risk Categories and Controlling for Covariate Factors*
Risk Category
Estimated Annual Effect Per High Risk Person ($)
Prevalence: Number of People at High Risk
High-Risk Group Annual Effect (Effect Per High_Risk Person x Prevalence) ($)
High-Risk Group Annual Effect as Percent of Annual Total Expenditures
High_risk Group Annual Effect on a Per Capita Basis (High-Risk Group Annual Effect/ 92486 Sample Size) ($)
Stress Level 413 8582 3,544,366 0.97% 38.32
Current Tobacco Use 587 16735 9,823,445 2.68% 106.22
Body Weight 1091 29416 32,092,856 8.76% 347.00
Exercise Habits 606 27251 16,514,106 4.51% 178.56
Blood Glucose Level 1653 5823 9,625,419 2.63% 104.07
Depression 2184 5427 11,852,568 3.24% 128.16
Blood Pressure 1378 5423 7,472,894 2.04% 80.80
Excessive Alsohol Use -402 3213 -1,291,626 -0.35% -13.97
Cholesterol -124 4734 -587,016 -0.16% -6.35
Nutritional Habits -179 38964 -6,974,556 -1.90% -75.41
Total expenditure attributable to high risk 82,072,456 22.40% 887.40
*The annual effect figures, both per capita and overall, are the effect of each of the risk categories, independent of all other risk categories and
coveriate factors. Expenditures are expressed in constant 2009 dollar figures. Total annual expenditures for the ASH
study sample were $366,373,301.
HERO II: ESTIMATED EFFECT OF EACH RISK CATEGORY ON ANNUAL MEDICAL
EXPENDITURES
Identifying “Best Practices” in Workplace Health Promotion: What Works?
Source: Goetzel RZ, Shechter D, Ozminkowski RJ, Reyes M, Marmet PF, Tabrizi M, Chung
Roemer E. Critical success factors to employer health and productivity management efforts:
Findings from a benchmarking study. Journal of Occupational and Environmental Medicine.
(2007) February; 49:2, 111-130.
40
Health Promotion Programs — What Works?
Leadership Commitment
• Leading by example – with buy-in
by middle managers
• “Healthy company” norm/culture
• Explicit connection to the core
principles of the organization
• Employee-driven advisory board
• Specific program goals and
objectives – with realistic
expectations
• Alignment of organizational, HR
and health promotion
policies/practices
• Sustainability – future orientation
41
Health Promotion Programs — What Works?
Incentives
• Incentives to participate (not
change biometrics)
• Accountability at all levels –
linked to rewards
• Effective marketing and
communication (multi-
channel)
42
Health Promotion Programs — What Works?
Effective Screening and Triage
• Casting a wide net to identify
the highest risk individuals
• Providing “public health”
interventions to keep people at
low risk
• Triaging individuals into
programs that produce greatest
impact/payoff
• Protecting confidentiality
• Coordinating with providers and
community resources
43
Health Promotion Programs — What Works?
• Theory and evidence-based
(e.g., Bandura, Prochaska,
Lorig, Strecher, Glasgow)
• Tailored and individualized
interventions
• Balancing high touch with high
tech
• Individual and
Environmental/ecological
interventions
• Effective, reliable, valid tools
State-of-the-Art
Intervention Programs
44
Health Promotion Programs — What Works?
Effective Implementation
• Integrate programs – insure vendor
(stakeholder) engagement
• Accessible/attractive programs
• Start simple – pilot – grow on success
• Multi-component -- variety of topics
and engagement modalities
• Integrate staff into the fabric of the
organization
• Spend the right amount of money to
achieve a desired ROI
45
Health Promotion Programs — What Works?
Integrated Data
Systems
Explicit connection of results to core
values
Measure, manage, and
measure again Rigorous
methods that stand up to peer review
Regular
communication
of results
Excellent Evaluation
ENGAGEMENT – DOES IT REALLY MATTER?
46
Health and Productivity Management Return on Investment Tool
PURPOSE OF THE MODEL
HOW TO USE THE MODEL
These cells contain model inputs that can be changed (click in the cell and type a new value).
These cells contain values calculated from the model inputs and cannot be changed.
These cells contain values that are fixed and cannot be changed.
Description of Model Input Pages:
Health Promotion Program Specify basic model settings including program cost and employee participation rate.
Employee Characteristics Specify demographic characteristics of the employee population.
Baseline Risk & Annual Change Specify the baseline risk level and annual rate of change.
Annual Rate of Productivity Loss Productive hours lost by risk factor from literature review.
Description of Model Result Pages:
Summary of Results Total medical & productivity savings and program cost with ROI (return on investment).
Predicted Medical Expenditure Medical cost savings per participant tabulated by risk factor and year of program operation.
Projected Productivity Loss Savings from improved productivity per participant tabulated by risk factor and year.
Risk Profile with No Program Percentage of employees at risk tabulated by risk factor & year with No Program.
Risk Profile with Health Promotion Percentage of employees at risk tabulated by risk factor & year with Health Promotion Program.
Savings by Risk Factor Cumulative medical and productivity savings per participant tabulated by risk factor.
Total Savings by Risk Factor Cumulative medical and productivity savings for all employees tabulated by risk factor.
Description of Simulation Tool & Appendix:
Scenario Simulation Specify 1- 5 scenarios by changing the model inputs and run them all automatically.
Appendix Supplemental information including default values, regression model, and risk definitions.
This tool will help you forecast the return on investment (ROI) you can expect by investing in programs that improve the health of
your employees. The tool is based on research showing an association between employees’ health risks and health care costs and
worker productivity. By reducing these risks, you can thereby expect to see cost reductions. But you also need to consider how
much money you invest in order to achieve these reductions.
The model opens with pages that specify demographic and health risk characteristics of an employee population then presents
pages of results, which are described below. Each of the pages can be viewed by pressing the navigation buttons on the left.
Questions about the ROI model: If you have questions about the use of this model, please contact Dr. Ron Z. Goetzel, Vice
President, Consulting and Applied Research, Truven Health Analytics, at [email protected].
Truven Health Analytics Proprietary Information - Subject to Section 6 (Ownership and Confidentiality) of the Services Agreement
between Truven Health Analytics Inc. and StayWell Health Management, LLC dated December 22, 2011.
Home
Employee Characteristics
Baseline Risk & Annual Change
Annual Rate of Productivity Loss
Summary of Results
Predicted Medical Expenditure
Projected Productivity Loss
Risk Profile with No Program
Risk Profile with Health Promotion
Savings by Risk Factor
Total Savings by Risk Factor
Scenario Simulation
Appendix
Health Promotion Program
Input Sheet Simulation
Home Page
DATA INPUTS
47
0.62 Health and Productivity Management Return on Investment Tool
Specify the basic model settings
Number of employees in the base year? 10,000 Press a button to restore default values
Annual % point change in number of employees? 0.0%
Medical payment per employee in the base year? $4,692
Please specify an average daily wage. $190.17
Participation rate of employees in the program? 62.0%
Annual program cost per employee? $156.00
Time horizon (1 to 10 years)? 5
Number of years until program levels off? 5
Discount rate applied for ROI calculation? 3.0%
Choose the type of analysis: TRUE
Home
Employee Characteristics
Baseline Risk & Annual Change
Annual Rate of Productivity Loss
Summary of Results
Predicted Medical Expenditure
Projected Productivity Loss
Risk Profile with No Program
Risk Profile with Health Promotion
Savings by Risk Factor
Total Savings by Risk Factor
Scenario Simulation
Appendix
Health Promotion Program Restore Defaults from the HERO 2 Study
Restore Defaults from Credible National Sources
Input Sheet Simulation
48
Employee Characteristics
CHANGES IN THE RISK PROFILE
49
Health and Productivity Management Return on Investment Tool
Specify the baseline risk level and annual rate of change with and without a health promotion program
Baseline Annual Change (% points) Change in
Risk No Program With Program Impact(%)
Obesity 31.8% 0.7% -0.5% 100.0%
(i.e., annual change with program in year x+1 / year x)
High Blood Pressure 7.6% -0.3% -2.8%
High Total Cholesterol 9.9% -0.5% -1.0% Press a button to restore default values for Baseline Risk
High Blood Glucose 9.5% 0.3% -3.0%
Poor Nutrition/Eating Habits 64.1% -0.1% -6.6%
Press a button to restore defaults for Annual Change
Physical Inactivity 36.4% -0.6% -3.7% No health promotion program
Tobacco Use 21.5% -0.7% -1.2%
High Alcohol Consumption 4.9% -0.1% -2.0% After implementation of a health promotion program
High Stress 17.4% 0.2% -3.4%
Depression 10.9% 0.2% -2.0%
A blank cell indicates there are no estimates from the literature that are statistically significant.
Biometric
Behavioral
Psychosocial
Home
Employee Characteristics
Baseline Risk & Annual Change
Annual Rate of Productivity Loss
Summary of Results
Predicted Medical Expenditure
Projected Productivity Loss
Risk Profile with No Program
Risk Profile with Health Promotion
Savings by Risk Factor
Total Savings by Risk Factor
Scenario Simulation
Appendix
Health Promotion Program
Restore Baseline Risk from the HERO 2 Study
Restore Baseline Risk from Credible National Sources
Restore Change with No Program from National Sources
Restore Change with Program from CDC Community Guide
Restore Change with Program from Recent Published Studies
Restore Change with No Program to 0.0%
Input Sheet Simulation
RESULTS – 62% PARTICIPATION RATE MEDICAL ROI = $1.74 TO $1.00
50
Health and Productivity Management Return on Investment Tool
Summary of results
With the current model settings the ROI is $1.74 for the cost of medical care and $3.21 for increased productivity.
No With a Break
Cumulative savings, program cost, and ROI (all discounted): Program Program Even*
Cumulative medical cost, no program $215,360,798 Obesity 0.7% -0.5% -1.1%
Cumulative medical savings, with program $12,444,468 High Blood Pressure -0.3% -2.8% -1.1%
Cumulative productivity savings, with program $22,967,121 High Total Cholesterol -0.5% -1.0% -1.1%
Cumulative program cost $7,144,343 High Blood Glucose 0.3% -3.0% -1.1%
Net Present Value (NPV), medical care $5,300,125 Poor Nutrition/Eating Habits -0.1% -6.6% -1.1%
NPV, medical + productivity $28,267,246 Physical Inactivity -0.6% -3.7% -1.1%
Return on Investment (ROI), medical care $1.74 Tobacco Use -0.7% -1.2% -1.1%
ROI, workplace productivity $3.21 High Alcohol Consumption -0.1% -2.0% -1.1%
ROI, medical care + workplace productivity $4.96 High Stress 0.2% -3.4% -1.1%
Break even program cost, medical care only $271.73 Depression 0.2% -2.0% -1.1%
Break even program cost, productivity only $501.50 * Annual change in risk that achieves ROI=$1.00 for medical care.
Break even program cost, medical + productivity $773.23
Current model settings:
Total employees at baseline 10,000
Annual medical cost/employee, baseline $4,692
Annual program cost/employee, baseline $156.00
Employee participation rate 62.0%
Time horizon (yrs) 5
Program levels off (yrs) 5
Discount rate 3.0%
Current annual rate
of change in risk:Home
Employee Characteristics
Baseline Risk & Annual Change
Annual Rate of Productivity Loss
Summary of Results
Predicted Medical Expenditure
Projected Productivity Loss
Risk Profile with No Program
Risk Profile with Health Promotion
Savings by Risk Factor
Total Savings by Risk Factor
Scenario Simulation
Appendix
Health Promotion Program
Click to calculate break-even risk reduction
Save a Copy of the Model
Save a PDF Copy of the Results
Input Sheet Simulation
RESULTS – 35% PARTICIPATION RATE – MEDICAL ROI = $0.98 TO $1.00
51
Health and Productivity Management Return on Investment Tool
Summary of results
With the current model settings the ROI is $0.98 for the cost of medical care and $1.81 for increased productivity.
No With a Break
Cumulative savings, program cost, and ROI (all discounted): Program Program Even*
Cumulative medical cost, no program $215,360,798 Obesity 0.7% -0.5% -1.1%
Cumulative medical savings, with program $7,025,103 High Blood Pressure -0.3% -2.8% -1.1%
Cumulative productivity savings, with program $12,965,310 High Total Cholesterol -0.5% -1.0% -1.1%
Cumulative program cost $7,144,343 High Blood Glucose 0.3% -3.0% -1.1%
Net Present Value (NPV), medical care -$119,240 Poor Nutrition/Eating Habits -0.1% -6.6% -1.1%
NPV, medical + productivity $12,846,070 Physical Inactivity -0.6% -3.7% -1.1%
Return on Investment (ROI), medical care $0.98 Tobacco Use -0.7% -1.2% -1.1%
ROI, workplace productivity $1.81 High Alcohol Consumption -0.1% -2.0% -1.1%
ROI, medical care + workplace productivity $2.80 High Stress 0.2% -3.4% -1.1%
Break even program cost, medical care only $153.40 Depression 0.2% -2.0% -1.1%
Break even program cost, productivity only $283.10 * Annual change in risk that achieves ROI=$1.00 for medical care.
Break even program cost, medical + productivity $436.50
Current model settings:
Total employees at baseline 10,000
Annual medical cost/employee, baseline $4,692
Annual program cost/employee, baseline $156.00
Employee participation rate 35.0%
Time horizon (yrs) 5
Program levels off (yrs) 5
Discount rate 3.0%
Current annual rate
of change in risk:Home
Employee Characteristics
Baseline Risk & Annual Change
Annual Rate of Productivity Loss
Summary of Results
Predicted Medical Expenditure
Projected Productivity Loss
Risk Profile with No Program
Risk Profile with Health Promotion
Savings by Risk Factor
Total Savings by Risk Factor
Scenario Simulation
Appendix
Health Promotion Program
Click to calculate break-even risk reduction
Save a Copy of the Model
Save a PDF Copy of the Results
Input Sheet Simulation
INCREASING ENGAGEMENT– ENLIST SENIOR/MIDDLE LEADERSHIP SUPPORT
• Get out the message – you have my permission to lead a healthy
lifestyle -- e.g., billing codes on time sheets
• Hold managers accountable – through feedback, report cards,
health index scores (Dow, PepsiCo, PPG, Novartis)
• Recognize best practices, and best practitioners, with tangible and
intangible rewards
• Train the boss – provide a “how to” guide and hand hold
• For leaders, walk the talk – participate in programs and be visible
• Look and act the part -- be a role model for others to emulate
• Communicate, market, advertize, brand, and “sell” health
• Treat health as you would any other business investment – with a
plan, goals, benchmarks, and budget
52
INCREASING ENGAGEMENT– CREATE A SUPPORTIVE ENVIRONMENT AND CULTURE
• Indoor/campus-wide smoking bans
• Vending machines – containing a preponderance of healthy foods,
with subsidies for healthy items
• Hide the unhealthy stuff – highlight the good stuff
• Insist on healthy foods at company-sponsored events
• Create marked walking trails
• Provide fitness centers/rooms
• Build bike racks/storage areas
• Make available shower facilities
• Provide stairwell signs/posters—point of decision prompts
• Offer walking desks (scheduled via Outlook)
• Create a work environment that encourages health
53
INCREASING ENGAGEMENT– WORK FLEXIBILITY, SOCIAL NORMS, AND INCENTIVES
• Allow for flexible work schedules and telecommuting
• Make available health improvement programs during odd shifts
• Publish statistics on prevalence of healthy lifestyles – assuming
more than 50% practice them
• Make health social – create affinity groups, competitions, enlist
mavens, influencers, and persuaders
• Recruit health ambassadors (champions/advocates) – reward and
recognize them
• Incent behaviors, movement toward goal achievement, and
outcomes (carefully)
• Connect health and safety
54
INCREASING ENGAGEMENT– LEVERAGE BEHAVIORAL ECONOMICS
• Healthy snacks as the default
• Exercise commitment contracts
• Forcing active choices – pre-commitment
– planning future menus – I will choose fruit
instead of a donut, tomorrow
– I will get my flu shot on November 15
• Encourage competitions and games – make health
fun
55
SO, WHAT CAN YOU DO TO INCREASE ENGAGEMENT?
Promote physical activity
• Walking trails, open stairwells, slow down the elevator, promote public transport, subsidize gym membership, provide pedometers, sponsor competitions, work with your local schools
Promote access to healthy foods
• Make the healthy choices the easy choices, label “healthy” choices, only allow healthy food at company-sponsored events, change vending machine contractors, sell half portions in the cafeteria, give people smaller plates, provide free water, make people wait for unhealthy food, promote and subsidize nutritious food, provide healthy cupboards, pay for microwaves and refrigerators, educate
Advocate for legislation that supports healthy lifestyles
• Soda taxes, physical activity in schools, ensure food advertizing to children is responsible, support outdoor facilities and parks, end subsidies for unhealthy foods and increase subsidies for healthy foods, build bike and walking trails
Build a healthy company culture
• Change the norms of the organization, reward employees and managers for healthy lifestyles, provide social support for employees who want to lose weight, make the workplace fun
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YOOHOO!!
Focusing on improving the health and
quality of people’s lives will improve the
productivity and competitiveness of our
workers and citizens.
A growing body of scientific literature
suggests that well-designed, evidence-
based health promotion and disease
prevention programs can:
• Improve the health of workers and lower their
risk for disease;
• Save businesses money by reducing health-
related medical losses and limiting absence
and disability;
• Heighten worker morale and work relations;
• Improve worker productivity; and
• Improve the financial performance of
organizations instituting these programs.