W ORKSITE W ELLNESS FROM MAKING THE CASE TO MEASURING THE RETURN Proprietary & Confidential |...

WORKSITE WELLNESS

FROM MAKING THE CASE TO MEASURING THE RETURN

Proprietary & Confidential | Trotter Wellness® | Copyright © 2012 | All Rights Reserved

TODAY’S PRESENTATION

Why Wellness? Keys to Success Required Program Components ROI Case Studies


HEALTHCARE COSTS ARE RISING If food prices had risen at the same rates as medical

inflation since the 1930s, we would be paying an astronomical amount for common grocery items.

One Dozen Eggs $80.20

One Roll of Toilet Tissue $24.20

One Dozen Oranges $107.90

One Pound of Butter $102.07

One Pound of Bacon $122.48

One Pound of Coffee $64.17

Source: American Institute for Preventive Medicine, 2007.


COST PER RISK FACTOR

Added healthcare costs an individual could incur each year if he/she had one or more of the listed risk factors.

Source: Health Affairs 2012: Ten Modifiable Health Risk Factors Are Linked to More than One-Fifth of Employer-Employee Health Care Spending, Goetzel et al. Based on 2009 data.

.


POTENTIAL OPPORTUNITY FOR HEALTHCARE SAVINGS Participants in the caution, high risk category cost an average

of 208% more than those in the excellent category per claim paid.


HEART DISEASE AND STROKES

Heart disease is the number one leading cause of death. Strokes is the third leading cause of death. Estimated total annual medical expenditures.

$148 billion for heart disease $37 billion for strokes

Many of the risk factors can be prevented, modified or controlled including high blood pressure, high cholesterol, excess weight, nutrition and physical activity.


POTENTIAL OPPORTUNITY FOR HEALTHCARE SAVINGS

Participants with two or more preventable health risks cost an average of 371% more than those with zero to one preventable health risks.


OBESITY

National Obesity Trends About ⅓ of U.S. adults (33.8%) are obese. Approximately 17% (or 12.5 million) of children and adolescents

aged 2 through 19 years are obese. Data from the National Health and Examination Survey (NHANES)

Trends by State 1990 – 2010 During the past 20 years, there has been a dramatic increase in

obesity in the United States and rates remain high. In 2010, no state had a prevalence of obesity less than 20%. Thirty-six states had a prevalence of 25% or more; 12 of these states (Alabama, Arkansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, Texas, and West Virginia) had a prevalence of 30% or more.


OBESITY TRENDS AMONG U.S. ADULTSBRFSS, 1990










THE COSTS OF LOST PRODUCTIVITY Employers, on average, have $3 of health related

productivity costs for every $1 of medical or pharmacy claims costs. Source: Journal of Occupational & Environmental Medicine, July 2007

Lost productivity represents 7.9% of total corporate earnings and 5.3% of human capital costs. Source: Health and Human Capital Foundation


THE IMPACT ON WORKERS’ COMPENSATION

A greater than 8-fold difference in Workers’ Compensation costs between recommended weight and obese workers. Duke University

A 7-fold difference in Workers’ Compensation costs between high and low risk workers. University of Michigan

Obese claims are 2.8 times more expensive than non-obese claims at the 12-month maturity. The cost difference climbs to a factor of 4.5 times at the three year maturity and to 5.3 at the five year maturity. National Council on Compensation Insurance (NCCI), 2009


RECAP THE “WHY”

Healthier Workforce Reduced Workers’ Compensation Costs Reduced Health Claim Costs Increased Productivity Reduced Sick Time


WORKSITE WELLNESSFROM MAKING THE CASE TO MEASURING THE

RETURN

KEY COMPONENTS FOR ROI


Proprietary & Confidential Trotter Wellness® Copyright ©2013 All Rights Reserved

Why Wellness

80% Well(40% Alleged Well)

14% Episodic

5% Chronic1% Catastrophic

18%

25%

33%

24%

POPULATIONHEALTH CARE

RESOURCES ($)

THE FOCUS


KEY SUCCESS FACTORS

Leadership Message and Participation Total Population Participation Incentives Communications and Logistics Yearlong Program and Cultural Change Long Term Programming & Goals Measurements


COMPREHENSIVE WELLNESS PROGRAM COMPONENTS

Logistics Health Risk Assessment (HRA) Health Coaching Biometrics Online Tools and Interventions Yearlong Programming Reporting and Measurements


INCENTIVE PLANNING

Critical to obtaining a return on investment for the client. Proper incentives drive program critical participation. Must fit the culture of the organization. Communicates the importance and value of the

initiative.



RETURN

RESULTS


COMPARISON RESULTS OVER 1ST 24 MONTHS


Proprietary & Confidential Trotter Wellness® Copyright ©2013 All Rights ReservedProprietary & Confidential Trotter Wellness® Copyright ©2013 All Rights Reserved

Sample Results: Aspen Equipment

A leading installer of truck mounted cranes in the Midwest

Specializing in crane rental, light truck uplifting, equipment rental and snow plow installation

Small Employer: <100 employees Leadership backed wellness initiative Employees and Spouses


Aspen Equipment: Program Incentives

Members were required to participate in the events listed below for a quarterly benefit credit towards medical premium; $75 Single ($300 Annual) / $150 Couple ($600 Annual)• Biometric Screening• Completion of a Health Risk Assessment• Participation in quarterly Health Coaching sessions• Set and achieve a minimum of one action or maintenance health

goalParticipation Results

Participants Enrolled

HRAs Completed

HRA Participation Percentage

Year 1

93 81 87%

Year 2

84 66 79%

Year 3

73 64 88%


Aspen Equipment: Behavior Change

Year 1: 38% at Risk

Year 2: 24% at Risk

Year 3: 20% at Risk

18% Change in Overall Wellness Score

Year 3 Results

25% improvement in fitness-related risk

11% improvement in cancer-related risk

8% improvement in nutrition-related risk

$4.63 : $1 ROI


Aspen: Health Risk Reduction


Sample Results: Waupaca Foundry

Largest producer of gray, ductile, and compacted graphite iron in the world

Leadership backed wellness initiative Implemented in all sites, spouses and retirees Alignment of benefit plan design, health risk reduction

strategies and health coaching support



$75 per month incentive ($900 per year) benefit credit towards medical premium

Program Requirements:Biometric ScreeningHealth Risk Assessment2 Health Coaching SessionsChoice: Annual Physical or 3rd Health Coaching

Session



Year 5 Results 89% Participation 9 Point improvement on Overall Wellness Score 37% improvement in fitness-related risk 34% improvement in cancer-related risk 17% improvement in nutrition-related risk

$16 : $1 ROI

Waupaca Foundry Case Study


FUNDING YOUR PROGRAM

Participation is key for wellness program success. Incentives in excess of $500 annually normally drives 80% or greater

participation. Most popular incentive is a differentiation in premium contribution with

non participants paying more for benefits. The non participants can fund your program cost.

Wellness Program Cost AnalysisSample Program

Optimal Health™ Program $129

Total Employees 300

Total Annual Cost $38,700

Annual Premium Incentive (Penalty)$20 per paycheck incentive for meeting minimum requirements for “Active Participation” $520

Assume 80% participation | 20% pay penalty (60) 31,200

Net Annual Program Cost $7,500



RETURN

QUESTIONS


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