Corporate Culture Of Health

Creating a Culture of Health In Your Company Corporate Wellness Trends & Best Practices Travis Haws Managing Partner

Pop Quiz! Answer yes or no to the following questions: I exercise 30 minutes or more on most days of the week I eat a healthy diet with 5 fruits/vegetables on most days I am within 5 pounds of my ideal body weight I don’t use tobacco products I have 2 or fewer alcoholic drinks per day Only 4% of Americans can answer yes to all five questions.

Tobacco use Poor Nutrition & Excess Weight Sedentary Lifestyle THE BIG THREE

80% of total HC costs attributable to chronic illness Half of all insured Americans are taking prescription medicines regularly for chronic health problems. Research suggests that 70% of physician office visits are for psychosocial reasons: stress, depression, loneliness Medicine is not equipped to handle current disease The rising generation, for the first time in the history of this country, may have a shorter life expectancy than their parents. Utah State Health Dept. Study, 2007 The Tipping Point

“ We do not have a health care crisis in this country - we have a health crisis with a health care system incapable of dealing with it.” Mike Huckabee, Former Governor of Arkansas

“ There is Good News” Substantial research now exists to show that wellness programs work! Employees by in large do want to be healthier, live with more energy, be more productive. The vast majority of employers are offering some type of wellness program or services to their employees

Companies Making The Investment Wellness Program Prevalence: Onsite flu shots (97%) Weight Mgt programs (85%) Health Risk Assessments (80%) Tobacco cessation programs (74%) On-site workout facilities (73%) Online wellness programs and resources (72%) Organized walking/exercise programs (66%) Key Corporate Strategies for 2008: 1. Create a culture of wellness within the company 2. Focus on the health of each employee 3. Build the business case for wellness 2007 Business Roundtable Survey

“ We have to move from illness to wellness. Businesses will have to invest in wellness. There is no choice. It’s not philanthropy. It’s enlightened self-interest.” Shrinivas M. Shanbhag, Medical Adviser, Reliance Industries, India

Why do Wellness? Rounds 1-3+ 1980s-90s Round 1: WWJD – “it’s the right thing to do for our company and our employees” Late 90s-2007 Round 2: Code Red – “claims hemorrhaging” – how to mitigate against the relentless double digit premium/claims increases 2007 Round 3: Moving the needle – “a cultural imperative” driven not by cost reduction, but employee performance & productivity improvement/optimization”

“ Our offices are all confronted with the same question: How can we tweak the employee value proposition and use wellness to give our employees a really great work experience?” James Corry, MetLife “ Last year, our focus was how employees could be better consumers of health care and better informed about their decisions. This year, we’ve moved on to the next level. How can you take better control of your habits and be successful at it.” Megan Turner, IBM “ At Dow . . . our profit potential is inextricably linked to the capability and performance of our employees.” Andrew Liveris, CEO

“ We don’t consider it a cost because the net effect is to improve health, reduce overall health care costs and improve productivity impacting the bottom line.” Deborah Lauper, Director, Compensation, integrated health and employee benefits, Corning “ Health promotion is not a program. It’s the way we live.” John Horne, Navistar Corp. “ Having a culture of health at Pitney Bowes has been my passion throughout my 16 years as a senior leader at the company.” Michael Critelli, CEO

Workforce Health – Changing Paradigms Perspective Current State Desired State Employee Metrics Absenteeism Performance Cost Metrics Medical Costs Productivity Care Model Treatment Focused Prevention & Behaviors Medical Model Individual Population Health Metrics Disease Status Health Status Interventions Single-Risk Focused Multiple-Risk Focused Health Framework Employer, Condition, and Program Centric Employee Centric Management Systems Segregated Programs Integrated Systems

The Corporate Wellness Adoption Model Wellness Strategy Development Program Design & Deployment Performance Review Outcomes Analysis Leadership Buy-in & Support Business Case Costs, ROI, $ Culture Building Program Refinement 6 5 3 2 1 4

Institute of Medicine: Characteristics of a Healthy Workforce HEALTHY Demonstrating optimal health status as defined by positive health behaviors; minimal modifiable risk factors; and minimal illnesses, diseases, and injuries; PRODUCTIVE Functioning to produce the maximum contribution to achievement of personal goals and the organizational mission; READY Possessing an ability to respond to changing demands given the increasing pace and unpredictable nature of work; and, RESILIENT Adjusting to setbacks, increased demands , or unusual challenges by bouncing back to optimal “well-being” and performance without incurring severe functional decrement.

Inspire – not require! “ The stick approach may work in the short term, but will likely not be effective over time.” Case Studies & Lessons Learned

Company A: 3614 Eligible Lives (employee + Spouse) 2007 High Risk: 15% Moderate Risk: 48% Low Risk: 37% Avg # RFs: 4.1 2008 High Risk: 11% Moderate Risk: 43% Low Risk: 46% Avg # RFs: 3.6 But . . . ~20% drop in HRA completion & inconsistent data suggest a loss of momentum Because employees are beginning to resent the Company’s punitive approach

Wellness is a strategy Not a program! Case Studies & Lessons Learned

Company C Focus = Strategy then program Set up 7 onsite clinics Developed & aligned incentives Covered preventive care 100% All programs are free Provide cost estimating tools and engagement resources Provided smoother transition to install of CDHP plans 15% drop in claims costs Company paid back $700k to EEs Case Example Company B Focus = Program, no strategy Little thought re communication Not a punitive culture “ If you install it, they will come” Lower cost program – minimal investm’t Very low participation rate after 6 months (less than 15%) Program take up rates equally low Not a good experience

Employees DO want to be healthier! Case Studies & Lessons Learned

82% of Americans view wellness programs positively 76% agree that employers who offer such program are showing concern 72% say they would be comfortable with using a wellness program 83% believe the programs will help them be healthier 70% said they would participate if there were incentives that helped reduce their premium by 5% 2007 EBRI Health Confidence Survey (HCS).

Committees are good Crusaders are better Case Studies & Lessons Learned

Product ≠ Culture Culture = Leadership Case Studies & Lessons Learned

It’s All About Personal & Organizational Transformation

Corporate Culture Of Health

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Corporate Culture Of Health