Engaging Incentives: Best Practices and Latest Trends SARAH MARTIN - - PowerPoint PPT Presentation

Smarter benefits. Better health.

Engaging Incentives: Best Practices and Latest Trends

SARAH MARTIN MANAGER, PRODUCT DEVELOPMENT AND MARKET RESEARCH 2010 Obesity Prevention Summit l April 14, 2010

Smarter benefits. Better health.

Quality of Life

• Fun activity
• Voluntary
• Site based only
• No spouses
• Not HCM oriented
• Minimal incentives
• No risk reduction
• No high risk focus
• No evaluation

Traditional Approach

• Health focus
• All voluntary
• Site-based only
• Some spouses
• Limited HCM oriented
• Modest incentives
• Some risk reduction
• Little high risk focus
• Weak evaluation

Population Health Mgt

• Add productivity
• Some required activity
• Site and virtual
• Spouses
• HCM oriented
• Major incentives
• Strong risk reduction
• Strong high risk focus
• Strong evaluation

Wellness Program Models

Source: Chapman, Using Wellness Incentives, 2002

Morale Oriented Morale Oriented Activity Oriented Activity Oriented Results Oriented Results Oriented

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Quality

• f Life
• Trinkets

Traditional Approach

• Gift Cards
• Premium

Reductions

Population Health Mgt

• Benefit

Based Incentives Connecting Incentives to Wellness

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Putting Yourself in Their Shoes…

Health Fairs Lunch and Learns Health Risk Assessments Biometric Screenings

Smarter benefits. Better health.

[ Fact: Employees by default are not interested in changing their behaviors …and they don’t want to be forced to by their employer]

Smarter benefits. Better health.

Tips for thinking about incentives

• Risk areas
• Tools
• Generational considerations
• Confidentiality
• Taxes
• Law (HIPAA, GINA, ADA)
• Leveraging existing programs
• Plan design options

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And then this little thing called health reform happened…

• Grants for small businesses to provide comprehensive

workplace wellness programs

• Defines prevention promotion services to include

telephonic, face to face and web-based intervention efforts on weight management, physical fitness, nutrition, healthy lifestyle support and diabetes prevention

• 20% changes to 30%
• Reiterates ADA and HIPAA
• Wellness demonstration project – 10 state incubator

Smarter benefits. Better health.

[ Fact: The same incentives that motivate your employees yesterday and today are not the same incentives that will motivate them tomorrow.]

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Over 50% of employers provide incentives, 6% are sticks 53% Full coverage of preventive services 53% Completion of a HRA 42% Participation in health improvement or dm 40% Participation in smoking cessation program 31% Participation in weight management program 21% Management of cholesterol level, blood pressure 12% Completion of consumer education module 7% Maintaining a personal health record

Hays Companies

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Incentive Options: Carrot or Stick?

• $50 to $250 can achieve 50%-80% participation rates
• Require the completion of a health risk assessment or

participation in a program

• Mandatory programs with a stick usually pay for

themselves in year one, and yield a 6:1 ROI or better in subsequent years

Hays Companies

When employers motivate the majority of employees to participate in a health care plan, the cross-section of participants becomes representative of the entire employee population

Smarter benefits. Better health.

Incentive Models: IBM

• Employees get up to two $150 payments a year for

completing HRAs and meeting specific requirements such as weight loss, diet change, or attainment of physical fitness goals

• Rebate for employees who establish healthy eating and

exercise routines for their children

• Rebate for new employees who complete an online

health assessment and visit Web-based health resource

Smarter benefits. Better health.

Incentive Models: State of Alabama

Starting in January 2010:

• $25 premium discount to employees who don’t use tobacco
• $25 monthly premium for tobacco users rises to $50 in 2011
• $25 “wellness premium discount” for employees who meet

standards for blood pressure, cholesterol, glucose, and BMI

• Anyone whose results fall outside certain boundaries receives a

voucher that covers the co-payment for a doctor’s visit.

• Beginning in 2011, employees can receive the discount if they

meet health standards or are taking steps to get healthier

• No wellness premium discount for employees who don’t take

health risk assessments and/or steps to reduce their health risks

Smarter benefits. Better health.

Incentive Models: Scotts Miracle-Gro

• $10 monthly fitness center fee, reimbursable after 120 uses
• Free health coaching
• Free medical services for employees and covered

dependents

• Free prescriptions for generic drugs
• Voluntary health-risk appraisal but employees who choose

not to participate pay a $40-per-month insurance premium surcharge

• If mid to high risk they can opt to consult a health coach

and take steps to lower risks. However, if that employee chooses to do nothing, they will pay a $67 insurance premium surcharge per month

Smarter benefits. Better health.

Incentive Models: The Safeway Model

• Provide employees rebates on health insurance

premiums for remaining within limits on four common medical risk factors - smoking, obesity, blood pressure and cholesterol.

• A state-of-the-art onsite fitness center
• Free lunch at the company cafeteria for every eight visits

to the gym

• Subsidized cafeteria, which offers lots of vegetarian fare
• Portion size, calorie count, cholesterol and fiber count

posted for all prepared meals in the cafeteria

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What are we seeing?

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[ The rise of value based benefits ]

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Group Benefit

• Targets high cost

conditions

• Can remove barriers

to care or…

• Establish financial

barrier to “non proven” services Member Level Benefit

The Rise of Value Based Benefits

Smarter benefits. Better health.

[ Question: Would it motivate you? ]

Smarter benefits. Better health.

Smarter benefits. Better health.