The onus to supply quality health care
seems permanently bestowed on
employers, and surveys show employees consider it the single most important
benefit.
“All employers are looking at ways to mitigate health care plan costs, and wellness is
one of the best ways to keep costs down,
keep claims down, and maintain a healthier population,” says Anne Carney, executive vice president, Hilb, Rogal & Hobbs. “A
lot of people are talking about wellness,
but not as many are willing to put the
resources or funds behind it,” adds Martha
Vinas, vice president, business strategy.
Smart Business recently spoke with
Carney and Vinas about how a comprehensive wellness initiative in any company can
help reduce health care benefit costs and
create a healthier and more productive
workforce.
What is driving health care costs?
Vinas: Individuals with chronic conditions typically generate 50 percent of
employer health care costs. Data shows
that 10 percent to 15 percent of those costs
could be eliminated with better management. Heart conditions, lung conditions
and diabetes always seem to top the list of
high-cost claims that can be reduced with
better management.
Carney: In general, 20 percent of plan
participants drive 80 percent of the overall
health care plan costs, usually due to those
lengthy chronic conditions that have significant ongoing costs to maintain. In many
of those high risk/high claimant costs are
costs and conditions that came about
through lifestyle choices like smoking,
excessive drinking and poor eating habits.
How are wellness plans delivered?
Carney: Most health plans sponsored by
national carriers have wellness programs
included, such as health risk assessments,
disease management coaching and complex case management. For plans that are
fully insured, the claim liability belongs to
the carrier, so it’s in the carrier’s best interest to keep their covered population
healthy and well – and those same wellness programs are also offered to employers who self-insure their plans. Beyond
that there are an increasing number of
wellness vendors that offer a wide range of
services; everything from taking biometrics and tracking individual participant’s
health improvements, to sponsoring smoking cessation and/or weight loss programs.
Vinas: When you do your due diligence
on selecting an appropriate health care
package, you need to determine what kind
of wellness programs are included so
you’re not spending money on additional
resources you may not need. Companies
often overlook or don’t fully access and utilize these wellness resources. There’s also
a wealth of online tools for employees.
How are companies enticing employees to
participate in wellness?
Vinas: It depends on the size of the
employer and the resources they are willing to dedicate for wellness. The most
common incentive has become a reduction
in payroll deductions for employees who
participate in healthy behaviors; this lets
the employee see a direct correlation
between his/her behavior and their costs.
We’ve also seen employers lower the
copay, or eliminate it altogether, for certain
medications for chronic conditions. Other
creative initiatives include supporting fitness by providing pedometers and using
online tools to track exercise or simply
changing the vending machines in the cafe-teriato include healthier items.
Carney: Wellness committees, especially
when they are made up of a cross-section
of employees – can also help design and
promote appropriate campaigns, and
encourage interest among their co-workers. Often, team incentives like movie tickets or an early dismissal encourage workers to help each other reach their health
goals.
What first steps should companies take
toward a new or improved wellness initiative?
Vinas: Companies, either internally or
through a consulting partner or vendor,
need to identify if they’re even ready for a
program. Factors that should be gauged
include the expected support from senior
leadership and support from the employees who will actually be taking advantage
of what the program will offer. Working
with a consultant gives you access to
resources and they understand how to
track data, set up programs and measure
success.
Carney: Companies are starting to grow
their business strategy around wellness.
Putting in a smoking cessation program is
a noble goal, but a better goal would be
putting in a smoking cessation program
that includes a lower payroll deduction
next year if the employee remains smoke
free. Implementing a two- or three-year
strategy helps people see that it’s to their
own benefit in multiple ways to participate,
and that the company has a commitment to
a healthier workforce. Rolling out a wellness plan to feel better is great, but rolling
it out to have a strategy around a healthier
workforce is even better.
ANNE CARNEY, CEBS, is executive vice president, Hilb, Rogal
& Hobbs in Tampa. She can be reached at (813) 289-7996 or
[email protected]. MARTHA VINAS is vice president,
business strategy, Hilb, Rogal & Hobbs in Tampa. Reach her at
(813) 864-2744 or [email protected].