H E A L T H W E A L T H C A R E E R

Presented by:

Peggy Sutton, Mercer PeopleProBarbara Jessen, Mercer PeoplePro

S T R A T E G I E S T O P R O M O T E E M P L O Y E E H E A L T H A N D W E L L B E I N G

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T O D A Y ’ S F E A T U R E D S P E A K E R S

Barb has worked in the employee benefits field for 35 years, including 17 years with a national health carrier and 13 years at Mercer.

She has continually broadened her expertise working up from claims processor, to her eventual elevation to Director of Account Management, managing both large and small account operations. She also worked for many years as a consultant with Mercer. She has a Master’s Degree and CEBS designation in Employee Benefits from Wharton School.

Barbara JessenHealth and WellnessPRO

A long tenured Mercer employee, Peggy brought her 20+ years of HR and operations experience to the People Operations Leader role within Mercer PeoplePro. She oversees anything related to recruiting, talent, operations, employee and customer experience, project management, and bringing “out-of-the-box”, streamlined solutions to the table and to fruition.

She is the co-founder and one of the executive sponsors of the Women@Mercer Network in Louisville, and received the Employee Resource Group Leader of the Year Award for 2011.

Peggy holds a Bachelor’s degree from the University of California, Riverside in Psychology and a Masters from Chapman University in Human Resource Management & Development.

Peggy SuttonPeople Operations Leader Mercer PeoplePro

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W H A T Y O U W I L L E N J O Y T O D A Y

• The importance of employer led transformation in health care

• How creating a climate of well-being in your environment helps everyone

• Successful consumer-facing strategies you can use in your work arena

• How to use workers compensation and disability data to assist in health transformation

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C A N W E S T I L L R O W T O G E T H E R W I T H A N E W A D M I N I S T R A T I O N A N D P R O P O S E D C H A N G E S ?

Navigating the Waters of Change Together

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W H Y S H O U L D Y O U W O R K O N I M P R O V I N G H E A L T H O F Y O U R W O R K F O R C E ?

• Employers provide 2/3 of all insured coverage in the U.S.

• The annual spend is nearly $1 trillion on health benefits for employees

• Health Affairs reports that 34% of that US Health Care spend is wasted

• Benefit cost increases outpace inflation

• Per the Mercer National Survey of Employer Sponsored Plans, 2016, 14.2% of payroll is allocated to health care benefits

• Employers cannot rely on other stakeholders to drive change

• Consumers do not have a unified voice and government solutions bog down

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W H Y C O M P A N I E S I N V E S T I N W E L L - B E I N G

• Improve the health of employees and their families

• Manage health care cost—for employees as well as employers

• Attract and retain employees—especially Millennials

• Improve work performance and productivity

• Happier, more engaged employees

• Maximize business results

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P O T E N T I A L I M P A C T O N T H E P E R S O N A N D T H E B U S I N E S S

Improvement in… Person BusinessPhysical Health More energy for living

AlertnessLower medical expenses

Improved productivityBetter work performanceFewer accidents/injuriesLower medical expense

Emotional Health Living a full lifeResiliency with challengesAbility to manage stress

Improved focus on the job

Financial Health Improved security Improved focus on the job

Social Health Stronger relationshipsSense of belonging

Happier, more engaged employees

Cultural/Workplace Health

Feeling valued/respectedAbility to have an impact

Happier, more engaged employeesLower turnover/better attraction

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S T A T E - O F - T H E - M A R K E T :I M P A C T O F W E L L - B E I N G P R O G R A M S

Several recent studies have found a sizable positive impact on the stock price of publicly-traded companies that embrace well-being:

• HERO/Mercer study:– Companies that report substantial well-being programs in place outperformed the

S&P 500 with 235% stock price appreciation vs. 159% appreciation over six years

• C. Everett Koop Award-winning companies outperformed S&P 500 stock price appreciation 325% vs. 105% over fourteen years

• American College of Occupational and Environmental Medicine Corporate Achievement Award winners outperformed S&P stock price appreciation 333% vs. 105% over fourteen years

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S T A T E - O F - T H E - M A R K E T :W E L L - B E I N G P R E V A L E N C E

According to Mercer’s National Survey of Employer-Sponsored Health Plans 2015, employers with 50-500 employees are focused on policies in lieu of programs

• 89% of employers this size have policies related to well-being:– 31% allow work time for physical activity or stress management– 35% have healthy eating initiatives– 74% have tobacco-free workplaces/campuses– 32% offer work/life balance benefits (flex-time, job-sharing, etc.)

• Only 29% provide programs to drive well-being– 33% have health assessments– 29% offer sleep improvement programs– 23% provide stress management programs

• 29% use incentives to drive participation and engagement

• 23% use technology (wearables, apps, etc.)

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I M P R O V I N G H E A L T H S T A T U S A W A R E N E S S

• Biometric and health assessments– Snapshot of physical (and some behavioral) health– Through health plans, community programs or home grown programs– Aggregate results provide data to target needed long term behavior changes– Tracking individual results so they can see where to start to change

• Engage employees– Leverage successful consumer facing strategies

- Social networking, gaming, incentives, communication engage employees– Web portals support health habits and ongoing participation– Mobile enabled access and social support available from most health plans to aid

employees in their health journey

• Targeted chronic illness programs

• Optimize use of health plan programs available to increase employee health and reduce cost of care

• Explore new care setting opportunities– Telemedicine, retail clinics, pharmacy lowest cost apps

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I N T E G R A T I N G H E A L T H A N D D I S A B I L I T Y M A N A G E M E N T I S A L A R G E L Y U N T A P P E D O P P O R T U N I T Y F O R M O S T E M P L O Y E R S

Survey results suggest we may be at a tipping point as

many employers report that such

integration is in their plans

Integrating health and disability

management has led to better engagement, improved productivity,

respondents report

Integrating health and disability management is a largely untapped opportunity for most

employers

Integration strategies include mining health

and disability data, referrals from disability

administrators to wellness vendors, and plan design incentives

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– Pay for Value- Pay for better patient outcomes, more efficient care and an improved member

experience- Know if your provider uses models such as accountable care organizations

and patient-centered medical homes and if your employees are using them. - Make sure you are receiving reports of value-based reimbursement models

through your carrier – Drive to quality

- Delivering the right care at the right time in the right setting, error-free- Monitor quality information from all sources - Know where your workforce is receiving low-quality care and create a cost

differential between care at high and low-quality settings - Modify your carrier contract to exclude payments for “never events”

L E A D I N G T R A N S F O R M A T I O N

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L E A D I N G T R A N S F O R M A T I O N

– Personalize the experience- Leverage better date and technology to engage employees in right behaviors

every day- Hold vendors accountable for high customer satisfaction and provide high-

touch/high-tech support to create more empowered consumers - Determine basic expectations of what your workers want and value in health

care design– Embrace disruption

- Inject change even if it creates short-term disruption- Health care market is entering an era of rapid and continuous disruption- New tech-based entrants adding more pressure to health plans- Health plans facing consolidation pressure- Alternative care delivery options are emerging- Diverse workforce preferences ensure that one size cannot fit all members- New health market is emerging and employers must capitalize on this formative

period to redefine their role and shape the market

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W H E N Y O U S H O U L D G E T O U T S I D E H E L P

• Address declining participation/lack of measurable results

• Help with program design

• Health plan/wellness vendor performance

• Incentive plan design and compliance

• Leadership business case development

• Benchmarks/market research to understand what other companies are doing

• Effective employee communications

• Improving employee engagement

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QUESTIONS

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W H O I S M E R C E R P E O P L E P R O ?

Mercer PeoplePro is the most powerful and affordable virtual marketplace for HR consulting and solutions. Designed to bring Mercer’s trusted brand and expertise to the small business segment, Mercer PeoplePro will power the HR engine needed by companies to grow fast, and attract and retain the best talent.

MERCER PEOPLEPROTM

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