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- 1. 1 Employer health costs are on the rise as American workers face healthcare issues that affect their productivity in the workplace. Promoting good health among employees is the first step to alleviating the impact of healthcare costs and increasing employee productivity. Current State of Employee Health Many of the most common health risks can be decreased through healthy lifestyle habits, such as healthy nutrition, physical activity and stress reduction. Statistically, if there are 100 people in your company: 44 suffer from stress 38 are overweight 30 have high cholesterol 26 have high blood pressure 25 have cardiovascular disease 24 do not exercise 21 smoke 12 have asthma 6 have diabetes1 Individuals who are obese have 30-50% more chronic health problems than those who smoke or drink heavily. Overweight and obese individuals are at increased risk for type 2 diabetes, heart disease, certain cancers, depression, and many other conditions.2 Smoking, however, is another lifestyle habit that causes increased risks for many chronic health conditions. Compared with nonsmokers, smoking is estimated to increase the risk of: Coronary heart disease by 2 to 4 times Stroke by 2 to 4 times Lung cancer in men by 23 times Lung cancer in women by 13 times3 Heart disease is another common concern for employers. On average, employees with hypertension will miss 67% more workdays per year than their non-hypertensive counterparts. Also, the behavioral risk factors for hypertension, which include obesity and smoking, indicate a general lower level of health status, which contributes to a high rate of absenteeism.4 Cost of Unhealthy Employees According to a study done by Indiana University-Purdue University, Fort Wayne (IPFW), 87.5% of healthcare claims costs are due to an individual’s lifestyle. One of the highest cost conditions is obesity. The total cost of obesity to United States companies is estimated at $13 billion per year. It has also been shown that 8% of
- 2. 2 private employer medical claims are due to overweight and obesity. Obesity is associated with: 39 million lost work days 239 million restricted activity days 90 million bed days 63 million physician visits2 Obesity is not the only costly medical condition for employers. Cigarette smoking and heart disease also result in increasing medical costs. From 2000-2004, cigarette smoking was estimated to be responsible for $193 billion in annual health related economic losses in the United States. This includes both direct medical costs and lost productivity.5 Cardiovascular disease and stroke in the United States cost an estimated $503.2 billion in direct and indirect costs in 2010.6 In one study in 2000, employees who had high cholesterol levels had average pharmaceutical costs of $1,041 per employee, whereas those not reporting high cholesterol had costs of $475 per employee.7 The 10 most costly health conditions from a medical and pharmacy cost perspective differ greatly from the 10 most costly health conditions from a productivity and direct medical cost perspective. The 10 most costly conditions in terms of medical and pharmacy cost are: cancer, back/neck pain, coronary heart disease, chronic pain, high cholesterol, GERD, diabetes, sleeping problems, hypertension and arthritis. The 10 most costly conditions in terms of productivity and direct medical costs are: musculoskeletal conditions, depression, fatigue, chronic pain, sleeping problems, high cholesterol, arthritis, hypertension, obesity and anxiety. The bottom line: Employees who have the healthiest lifestyles have the lowest medical care costs. Worksite Wellness Worksite wellness programs work to improve health-related knowledge, health behaviors, and underlying health conditions. They are strategically designed to meet the unique needs and interests of the employees. Programs vary and can include services such as a health risk assessment (HRA), biometric screenings, onsite classes/seminars, one-on-one consultations with a health educator, online health education, newsletters, and more. It is recommended that employers spend at least 5 percent of their total health and productivity costs on prevention and health promotion. Budgets for the most successful worksite wellness programs range from $200-250 per eligible employee per year. One recommended approach is to include the wellness program budget into the health plan premium. This can be done by increasing
- 3. 3 the employee contribution to the premium for those that do not participate in the wellness program.8,9 There are many reasons why employers pursue worksite wellness programs, including that these programs help: Control high healthcare costs Improve productivity Reduce absenteeism and disability Improve employee morale Improve the corporate image Comprehensive programs include the following components: Assessing the employee population o An employee needs assessment identifies not only what types of programs employees are interested in, but also factors such as what time of day works best for them o A health risk assessment (HRA) is another important component at the beginning of a worksite wellness program as it helps the individual employees identify their health and wellness goals Determining health risks o This can help stratify employees into interventions that can help them manage their current conditions, prevent conditions they are at high risk for, and help low-risk employees maintain a healthy status Implementing programs o Programs include classes/seminars, one-on-one consultations, online health education, incentive programs and more Motivating employees o Motivation to keep employees engaged can be done through things such as effective communication and incentive programs Tracking participation and progress o This is to help each individual employee stay motivated when they see the progress that they have made Evaluating the program o Survey the participants to find out what they felt worked and could be improved upon o Track participation in programs, changes in health status, and any improvement that can be seen in health costs Benefits of Worksite Wellness Employers receive many benefits when implementing worksite wellness programs. Not only do they see reduced healthcare costs, additional benefits may include increased employee morale, improved employee health, reduction in workers compensation claims, reduction in absenteeism and increased productivity.
- 4. 4 Another benefit of worksite wellness is decreased presenteeism. Presenteeism refers to when employees are at work, but due to health concerns, they are not working optimally. This is considered to be a problem at over 50% of workplaces. The cost per employee is between $22 and $157 each year. When employees are healthier, this issue is decreased because they are more productive while at work.1 The basic principle of worksite wellness programs is to provide an environment where employees can work to prevent disease as well as manage the health conditions that they have. This leads to not only a more affordable healthcare strategy for employers, but also better quality of life for employees. Typically, employees participate in wellness programs for the following reasons: Feel better and have more energy Prevent and detect disease through screenings Reduce stress Decrease personal health costs Improve their quality of life Evidence-based worksite wellness programs that are based on proven health promotion theories, are comprehensive, and are well implemented have produced significant cost savings that outweigh the expense of providing these programs. The return on investment (ROI) for worksite wellness programs is typically between 1.5-3 to 1 ($1.50 to $3.00 saved for every $1.00 spent). ROI varies based on program components, but typically the most comprehensive programs that target a variety of risk factors show the best ROI. It usually takes about three years for positive ROIs to be seen because programs need time to be implemented properly and become part of the company’s culture. It is important to note that while ROI is valuable, it is only one of several performance indicators of a good worksite wellness program.8 Management Support One of the key things to secure from the beginning of a worksite wellness program is management support at all levels. Senior management, as well as middle management, needs to be committed to the program in order to drive participation. A management team that determines that worksite wellness is not only in the best interest of the company financially, but also in the best interest of the employees, can help to drive significant change. Senior management is a key factor to the success of the program. This includes much more than providing adequate funding for the program. Senior management support is seen through support of a wellness committee, providing incentives for participation, encouraging middle management to be involved, being visibly involved themselves, and leading by example. A senior management team that develops a vision statement for the wellness program,
- 5. 5 communicates the importance of the program, and participates in the program can lead to great results from the employees. Participation The first step to successful participation is the type of communication strategy that is implemented. This can take on many different forms, depending on what works best in a specific environment. Examples include letters from the CEO, e- mails, designated sections on the company intranet site, announcements at departmental meetings, tent cards in the cafeteria, posters and personalized invitations. The best communication strategies require that messages are delivered often using many different methods in order to capture all audiences. The messages should be sent in different ways and at different times. The next step is to implement a quality program that meets both the interests and the needs of the employees. For example, if the employees do not have access to computers, providing face-to-face programs will work best to engage the population. The wellness program should also be comprehensive in that it covers a variety of health topics, not only focusing on one thing, such as weight management. Another component to increasing participation is providing attractive incentives. Some common incentives include cash, gift cards, days off from work, or a reserved parking spot. Providing incentives that total around $200 per person have been shown to increase participation in worksite wellness programs from 20-40% to 70-90%. Keep in mind that the incentives get people to participate, but a comprehensive, well-planned program needs to be in place to help those employees achieve behavior change.10 Some of the highest participation rates are achieved when employers incentivize individuals for participation through the employee contribution to the premium. This can be done by either decreasing the employee contribution for those that participate in the wellness program, or increasing the contribution for those that do not participate. The benefits to this approach include: It can be cost neutral to the employer. Those that are not participating are basically funding the wellness program, including the incentives. Employees become more aware of the cost of medical care and the connection between health behaviors and medical costs. Program participation can significantly increase, and participation is the first step to helping the employees to live healthier lives, which enhances the health of the entire organization. The best planned wellness programs have a participation rate that exceeds 70% of the population.
- 6. 6 Health Education and Wellness (HEW) The Health Education and Wellness (HEW) Division believes that education is an integral part of preventive health. We provide programs dedicated to improving the lifelong wellness of employees. We recognize that wellness is a never-ending process involving physical, emotional, intellectual and spiritual health. Our goal is to prevent illness and to help employees manage existing health concerns through knowledge and provision of tools they need to make self-care decisions and improve their quality of life. Health Education & Wellness received the 2012 SILVER award from Healthcare Advertising for the Nutrition and Cancer Control Booklet on Leukemia. The Healthcare Advertising Awards is the oldest and largest health care advertising awards competition. In 2012, there were nearly 4,000 entries, and winners were selected by a national panel of judges looking for quality, creativity and message effectiveness. The Case In Point Platinum Awards aim to recognize the most successful and innovative case management programs and individuals working to improve healthcare across the care continuum. Case In Point Platinum Awards Program showcases the work of care coordination professionals across 22 categories, from best emergency department program to best wellness and prevention program to name a few. In 2012 HEW received honorable mention in the wellness/prevention category for the My Way to Wellness program for Clark County School District employees. Below is a summary of the worksite wellness offerings through HEW: Needs Assessment: The first step is to conduct a Needs Assessment to evaluate the employee population needs. This can include a site survey to gain insight on the best implementation strategies for a particular employer. A mini questionnaire comprised of just a couple of questions can be given to the employees to assess their needs in order to sculpt the wellness program. Health Risk Assessment (HRA): The health risk assessment (HRA) is an online tool used to assess health risks based on a series of questions. Based on how the employee answers the questions, results from the HRA flag health risk factors that require additional attention by the employee. Outcome data is reported to the employer in aggregate. Online Learning: MyHEWOnline is a tool for online learning. The website includes education modules on six topics: diabetes, heart health, pregnancy, preventive healthcare, stop smoking and weight management. Each module includes health information,
- 7. 7 as well as interactive tools and webisodes for further learning. Employees create their own personal log-in information so that the website is personal for them. Biometric Screenings: Biometric screenings including height, weight, body mass index (BMI), body fat percentage, waist circumference, blood pressure, total cholesterol, LDL, HDL, cholesterol ratio, triglycerides, and glucose are available. Classes on Various Health Education Topics: The success of HEW wellness programs lies in our core philosophy, which allows us to connect and outreach to employees through face-to-face interaction. HEW develops our own set of proprietary workbooks and curriculum that is given to employees during their class sessions. Classes are designed to meet the employee population’s needs. For example, a weight management class can be broken up into three, two hour sessions, or six, one hour sessions, whatever fits the environment best. Class topics include: Arthritis Asthma Back Care Carpal Tunnel Syndrome Chronic Obstructive Pulmonary Disease (COPD) Diabetes Fitness Heart Failure Heart Health Hypertension Lifestyle Management Nutrition and Fitness Pregnancy Preventive Healthcare Stop Smoking Stress Management Weight Management Healthy Nutrition for Children Women’s Health Seminars: Seminars are designed to increase knowledge on a variety of health topics. Each seminar is a one time, one hour seminar that goes into detail on a specific topic. Topics include: Allergies: Ease Your Sneeze Back Care/Ergonomic Safety Kit Diabetes: The Balancing Act Osteoporosis: Better Bones Stop Smoking: Break the Habit
- 8. 8 The Buffet Challenge Heart Health: Don’t Eat Your Heart Out The Supermarket Challenge Pregnancy: Healthy Expectations Fitness: How Much Do You Burn Hypertension What Is Arthritis The Skinny on Fat Nutrition Basics Preventive Healthcare: Take Charge Stress Management Incentive Programs: A broad range of creative incentive programs are offered to motivate employees. These incentive programs use educational materials and incentive items to help employees have fun while reaching their health and wellness goals. Part-time or Full-time Health Educator Onsite: These options include a part-time or full-time health educator onsite at the employer group location. The core of the onsite health educator option is the ability to provide one-on-one consultations and classes on the health topics mentioned above. The health educator is also in charge of all health related initiatives for the employer, including the HRA, biometric screenings, incentive programs, and any other health-related events. HEW offers the above worksite wellness components individually, or packaged together. HEW is committed to providing data to support the success of the program. We use a database application that tracks participation and behavior change over time. HEW provides aggregate reporting to the employer regarding participation, HRA results and health outcomes. Confidentiality of all medical records is strictly enforced to ensure maximum participation without fear of reprisal. If you are interested in meeting with the HEW worksite wellness team, please contact: Wendy Ronovech Associate Director, Health Education & Wellness Division P.O. Box 15645 Las Vegas, NV 89114-5645 (702) 242-7491 Wendy.Ronovech@uhc.com
- 9. 9 References 1. American Institute for Preventive Medicine (2010). The health and economic implications of worksite wellness programs. Retrieved January 13, 2012 from www.healthylife.com 2. National Business Group on Health (2011). Healthy weight, healthy lifestyle primary fact sheet for the Institute on the Costs and Health Effects of Obesity. Retrieved January 12, 2012 from www.wbgh.org 3. Centers for Disease Control and Prevention (2012). Health effects of cigarette smoking. Retrieved February 4, 2012 from www.cdc.gov 4. American Diabetes Association (2003). Economic cost of diabetes in the U.S. in 2002. Diabetes Care 26: 917-923 5. Centers for Disease Control and Prevention (2011). Economic facts about U.S. tobacco production and use. Retrieved January 12, 2012 from www.cdc.gov 6. Journal of the American Heart Association (2011). Heart disease and stroke statistics – 2010 update. A report from the American Heart Association. Retrieved January 12, 2012 from www.circulation.ahajournals.org 7. Burton, W., Chen, C., Conti, D., Schultz, A., Eddington, D. (2003). Measuring the relationship between employees’ health risk factors and corporate pharmaceutical expenditures. Journal of Occupational and Environmental Medicine, 45(8): 793-802 8. Wellness Council of America (2010). ROI for worksite wellness: Dr. Ron Goetzel on the value of a healthy workplace. 9. O’Donnell, M. (2010). Editor’s notes: Integrating financial incentives for workplace health promotion programs into health plan premiums is the best idea since sliced bread. American Journal of Health Promotion, 24(4): iv-vi 10. Wellness Council of America (2011). Prevention and health care reform.