Why Wellness

Why Wellness• Chronic Diseases related to lifestyle accounts for 75% of healthcare

spend, and 96% of pharmacy spend.

• Major opportunity for impact is keeping low risk employees from moving into high risk categories.

• 1 in 3 adults have a lifetime risk of diabetes.

• Overweight adults increased from 61- 65% in five years. • Over the past 5 yrs, Healthcare costs for obese Americans has grown

82%• Childhood obesity grew 10% in last 5 years – now 30% of children.• We are at a time when employers want people who are healthier,

thinner, faster, younger, and less stressed. The general population is becoming less healthy, fatter, slower, and more stressed.

Why Wellness …Continued

• The Graying of America – people are living longer utilizing more health care.

• Workplace stress is at it’s highest level and getting higher.

• Medical costs (hospital & pharmacy) are continuing to rise.

• Behavior influences up to 50% of healthcare costs.

Good health is our most valuable possession

What influences our health?

• 50% Healthy Behaviors• 20% Environment• 20% Genetics• 10% Access to Healthcare

Be Tobacco FreeSOUTH DAKOTA

• Cigarette smoking and secondhand smoke cost $92 billion in productivity losses annually, according to the US Centers of Disease Control & Prevention

• The CDC puts a $3,391 price tag on each employee who smokes, $1760 in lost productivity and $1,623 in excess medical expenditures

• American Cancer Society reports that employees who smoke have an average insured payment for health care of $1,145 while nonsmoking employees average $762.

(www.befreesd.com)

If Food Were Health Care

• 1 dozen eggs $80.20• 1 pound apples $12.23• 1 pound sugar $13.70• 1 roll of toilet tissue $24.20• 1 dozen oranges $107.90• 1 pound butter $102.07• 1 pound bananas $16.04• 1 pound bacon $122.48• 1 pound beef shoulder $43.57• 1 pound of coffee $64.17

10 ITEMS $586.56

If food prices had risen at the same rates as medical inflation since the 1930’s, we would be paying an astronomical amount for common grocery items as evidence below.

Source: American Institute for Preventive Medicine, 2007

Benefits of Workplace Wellness

For the Employee• Higher job satisfaction, increased ability to cope with

stress, improved health and well being, increased productivity and effectiveness at work.

For the Organization• Reduced absenteeism, injuries and turnovers, disability,

compensation, healthcare costs, and life insurance costs

• More productive and efficient employees result in better service to one another; and healthy employees have a positive impact in the health of the community and state.

• Employer of Choice!

Health Care Costs For Family Of 4 To Reach $20,000

This Year (2012)

In 2002 the average cost for a family 4 in

comparison was just $9,235, less than half of

today’s overall cost.www.newser.com/.../health-care-costs-for-family-of-4-to-top-20k-this-year.html

Time for a Paradigm Shift

Shift Thinking From…• Good health is out of my

control• Insurance is an entitlement

Shift Thinking From…• Employee health is not my

business• Negotiate best rates and cost

shift

• Focus on short term

Shift To…• I can make choices• Being a conscientious

consumer

Shift To…• Employee health is my

business• Get to the core of the

problem (better health); partnership

• Project out 5 years

Employee

Employer

The Bottom Line

Unhealthybehaviors

Health risks

Chronicdisease

Health carecosts

Creating a Healthy Work Environment Means…

• Empowering employees with information.• Encouraging and supporting healthy behaviors.• Creating local partnerships with the same goals.• Know your areas of risk.

7 Steps to Develop a “Best in Practices” Program

1. Capturing CEO & Senior Level Support2. Creating Cohesive Wellness Teams (Roles/Responsibilities)3. Collecting Data to Drive Health Efforts (Claims & Screenings)4. Crafting an Operating Plan5. Choosing Appropriate Interventions6. Creating a Supportive Environment (Culture; Continuous)7. Consistently Evaluating Outcomes (Best of the Best)

Small Scale 1. Wellness point person is Step #12. Have a plan that includes awareness and education3. Set goals and objectives and FOCUS on it. 4. Walk the talk

Case Studies

• Benchmarks in place– Moving high risk to medium and low; measured

outcomes• Partnering with carriers and employers that have a

common goal and stake in the game• One on one (Face to Face) coaching - risk

stratification• Employer group task force to brainstorm; create

the hub; adjust the spokes to your culture’s goals and programs

• Healthier Risk pool (carriers/providers)