© 2012 Health Fitness Corporation VS. Perspectives on Employee Health & Incentives The Costs of Employee Health Wellness Program Incentives View employees’ poor health habits as the biggest challenge to maintaining affordable benefit coverage 2 2 out of 3 can’t estimate how much their employer spends on health benefits 6 61% 23% { $100 $100 $100 $100 $100 Employers Employees Employers Employees New Guidance on Incentives Many are not aware of the connection between their health and the health care dollar, or the positive impact of relatively small behavioral changes Calculated the monthly spend by employers to be less than $500 per month { Agree Disagree offer wellness programs 3 65% provide an incentive based on tobacco-use status base on achievement of outcomes such as body mass index or cholesterol To improve employee health How incentives are used 5 : Most don’t want to feel forced to participate in wellness 7 agree that employers are right to offer wellness programs in an effort to control health care costs favor offering a financial reward to those who meet specific health goals oppose charging more for health coverage if they do not participate in wellness programs oppose charging more for health coverage if they don’t meet health goals apply surcharges to employees for not participating in wellness programs To make outcomes-based incentives fair and effective with improving employee health, recently published guidance 9 suggests the following: Sources: 1 The Road Ahead: Shaping Health Care Strategy in a Post-Reform Environment, Towers Watson/National Business Group on Health, 2011 2 Performance in an Era of Uncertainty, Towers Watson/National Business Group on Health, 2012 3 Health Care Survey, Aon Hewitt, 2012 4 Ibid. 5 “Large Employers Expect Health Benefits Costs to Increase 7% in 2013, SHRM 6 “The U.S. Health Consumer is Health-Finance Illiterate and Resistant to Linking Wellness to Health Plan Costs,” Health Populi, July 30, 2012 7 “Perceptions of Health Benefits in a Recovering Economy: A Survey of Employees,” National Business Group on Health, July 26, 2012 8 Health Care Survey, Aon Hewitt, 2012 9 “Guidance for a Reasonably Designed, Employer-Sponsored Wellness Program Using Outcomes-based Incentives,” Journal of Occupational and Environmental Medicine, July 2012 44% 44% 29% 29% 22% 22% 65% 77% 77% 80% 80% 68% 68% 71% 71% Avoid using a reward or penalty that is so large it discourages participation. Use the 4 most common targets of weight, cholesterol, blood pressure and tobacco use. Reward for progress toward the standard targets, instead of just rewarding those who meet the goal. Help employees integrate healthy behaviors by offering personalized support, such as a health coach, so they are more likely to internalize and sustain healthy behavior changes over time. For employees with a medical condition that makes it difficult to achieve the health standard, defer to the employee’s health care provider for a reasonable alternative standard or a waiver. 35% To read more about the JOEM guidance on outcomes-based incentives, visit www.the-hero.org. GUEST RECEIPT Guest Check Total 453272 NO. PERSONS DATE CHECK NO. AMOUNT 453272 TABLE NO. NO. PERSONS CHECK NO. SERVER NO. $11,176 Total bill for health care for each employee (employees pick up the difference) 1 $8500 amount spent per employee on health care coverage in 2011 2011 2012 Used incentives with condition management Used incentives with wellness programs