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Wellness Programs: Worth the Plunge?

Wellness Programs: Worth the Plunge?. A look at corporate wellness Impact of employee turnover Wellness ROI Historical comparisons Using a long-term perspective. Presentation Agenda. 94% of large employers offer a wellness benefit 48% offer biometric screening

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Wellness Programs: Worth the Plunge?

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  1. Wellness Programs: Worth the Plunge?

  2. A look at corporate wellness Impact of employee turnover Wellness ROI Historical comparisons Using a long-term perspective Presentation Agenda

  3. 94% of large employers offer a wellness benefit 48% offer biometric screening 56% offer lifestyle or behavioral coaching 41% offer financial incentives 11% have financial penalty if member with risk factor does not participate in wellness or health management program 34% report primary reason: reduce health care costs 68% think their wellness program is effective in reducing cost  Corporate Wellness %’s Source: Kaiser/HRET Survey 2012, large firms.

  4. Obesity rates in 2011 ranged from a high of 34.9% in Mississippi to a low of 20.7% in Colorado. By 2030, Mississippi could have the highest obesity rate at 66.7% and Colorado could have the lowest rate for any state at 44.8% Obesity rates among U.S. adults have more than doubled from the 15 percent of 1980. In that same time, they have more than tripled among children. If obesity rates continue on their current trajectories, by 2030, 13 states could have adult obesity rates above 60%, 39 states could have rates above 50% TFAH/RWJF 2012 Report Source: Trust for America's Health (TFAH) & Robert Wood Johnson Foundation (RWJF) 2012 Obesity Report.

  5. If obesity rates continue on their current trajectories, the number of new cases of type 2 diabetes, coronary heart disease and stroke, hypertension and arthritis could increase 10 times between 2010 and 2020—and double again by 2030 Obesity could contribute to more than 6 million cases of type 2 diabetes, 5 million cases of coronary heart disease and stroke, and more than 400,000 cases of cancer in the next two decades. TFAH/RWJF 2012 Report Source: Trust for America's Health (TFAH) & Robert Wood Johnson Foundation (RWJF) 2012 Obesity Report.

  6. By 2030, medical costs associated with treating preventable obesity-related diseases are estimated to increase by $48 billion to $66 billion per year in the United States, and the loss in economic productivity could be between $390 billion and $580 billion annually by 2030. Although the medical cost of adult obesity in the United States is difficult to calculate, current estimates range from $147 billion to nearly $210 billion per year. TFAH/RWJF 2012 Report Source: Trust for America's Health (TFAH) & Robert Wood Johnson Foundation (RWJF) 2012 Obesity Report.

  7. Are corporate wellness programs really working?

  8. Employee Turnover Analysis Source: AmeriBen. Sample size comprised 13,441 enrolled employees; 27,197 members.

  9. Why is corporate wellness not working as well as it could?

  10. Connected: The Surprising Powerof Our Social Networks Dr. Nicholas Christakis & Dr. James Fowler

  11. In the beginning…optional HRA and biometric testing Then…began to offer incentives Then…increased incentives and implemented activity-based wellness programs 2012: penalty for tobacco users 2012: implemented results-based wellness and supplied in-person health coaching services Wellness at AmeriBen Source: Kaiser/HRET Survey 2012, large firms.

  12. Wellness ROI discussion

  13. Cardiovascular disease – 50% explained by age and gender; the most life threatening of the diabetic complications. Type 2 diabetes - makes up about 90% of cases; obesity is thought to be the primary cause of type 2 diabetes. Cancer – tobacco use and obesity explain about 60% of cases Osteoarthritis - lifestyle modification (such as weight loss and exercise) and analgesics are the mainstay of treatment Asthma - symptoms of allergies and airway hyper-reactivity increased in correlation with each 20% increase in BMI Obesity and….

  14. Preventable Costs Source: AmeriBen. Sample size comprised 17,823 employees and spouses.

  15. What If This Continues? Worker: 8.48% Annual Growth; Employer: 7.38% Annual Growth Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2001-2012.

  16. Distribution of Health Plan Enrollment for Covered Workers, by Plan Type, 1988-2012 2% 1% 1% 1% <1% Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2012.

  17. Thoughts on CEO Pay

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