Wellness in the Workplace

1. 1 Wellness in the Workplace Stephanie Ramsey, M.P.H. Ohio Bureau of Workers� Compensation April 15. 2005 Meeting of the American Association of Safety Engineers April 15, 2005

2. 2 Introduction Open your �hymnals!� What are the linkages between healthy employees and healthy bottom lines? �. the Health and Productivity Model Why the disconnect? How to restore the linkages? Is there an attractive ROI? Making �Workplace Wellness� a reality

3. 3 Business case for Health and Productivity Management Rising medical and disability costs create business pressure that can mean the difference between success and failure to a company - Costs of medical services in the U.S. are rising at 7 times the rate of inflation (RWJ expects this rate to continue) - Claim costs (WC, Medical, Disability) - WC costs increased with increasing risk status ( Study at Xerox Corp. 1996-1999, Health Management Research Center, Univ. of Michigan) Workforce demographics - An aging workforce - Greater incidence of chronic disease - Incidental absence

4. 4 Business case for Health and Productivity Management Summary of Costs (Continued) Productivity - Absenteeism - �Presenteeism� - Shift to a �knowledge based� business model - World-wide competitive environment Ancillary costs - Claim administration, vendors - Benefit plan design changes - Decreased benefits - Increased cost sifting

5. 5 First generation business response Benefit Plan design changes Emphasis on the �cost shift� Greater employee share to the claim expense 65% of companies in 2003 increased employee share of health costs (Healthy Ohioans Business Council) 79% of large firms reported plans to increase employee share in 2004 (HOBC)

6. 6 New Paradigm: Health & Productivity Management Human Capital management approach Not �cost shift� but �demand management� grounded in prevention Addresses absence, �presenteeism,� and employee health to lower incidence, decrease costs, and increase productivity

7. 7 Employer response Employers moving toward implementation across dimensions of wellness and health promotion to keep low risks low and manage high risks 69% using disease management programs through a health plan (NBGH/WW Study 2004) 50% increase over prior year 32% offering obesity reduction (up from 14% in prior year) Best performing companies succeeding across the board at managing costs and improving employee satisfaction!

8. 8 Is there a persuasive ROI?!!!Case Study Results Travelers Insurance reported $3.40 return to $1.00 spent on health promotion programs DuPont Fitness Program ? savings of $1.6M, $1.5M, $3M annually over 3 years Logan Aluminum (Kentucky): 2002-2003 - ? Health claims by 19% - ? 10% reduction in health care costs - Reversed prior annual increases of pharmacy costs of 20.2% (over 3 years) to reductions in 2002 & 2003 of 5.5% and 5.3%

9. 9 More Outcome Results Kimberly Clark reports a 43% reduction in absenteeism among EAP participants & a 70% drop in accidents for one year post treatment vs. one year prior to treatmemt Adolph Coors reports a return of $1.24 - $8.33 for every $1 spent on employee wellness and a $1.3M saving through a cardiac rehab program over a 6 year period

10. 10 Establishing a successful wellness program: Tips from the National Business Group on Health Assess: - What is corporate interest and need? - What are prior recommendations? - Evaluate costs and benefits - Communicate results of evaluation to all decision makers

11. 11 Step 2 Developing/Purchasing - Set overall objectives - Determine whether to buy or build - Establish utilization goals - Set service parameters for quality service delivery - Develop quality assessment measures of health plans offering preventive services - Develop workflow and roll-out specs

12. 12 Step 3 Communicating - Research attitudes and preferences of target audiences - Establish communication objectives - Identify target audiences and how they prefer to communicate - Use multi-media approach

13. 13 Step 4 MEASURE�. MEASURE�. MEASURE - Measure results against PRE-DETERMINED objectives� do NOT chase data !!!! - Evaluate program outcomes ( improved health, decreased risk factors, behavior change, reduced costs, lower absenteeism) - Evaluate benefit plan programs, preventive services, health promotion/disease management programs

14. 14 Resources Ohio BWC� The Ohio Department of Health The Wellness Councils of America: www.welcoa.org The National Business Group on Health www.businessgrouponhealth.org The Integrated Benefits Institute The Disability Management Employers Coalition

15. 15 The challenge�. �The health of the people is really the foundation upon which all their happiness and all their powers as a state depend.� Benjamin Disraeli Improving health IS improving business�.