1. Transforming Society: Workplace Wellness Programs IRF EDUCATION DAY OCTOBER 4, 2011

2. Agenda (HIDDEN) TimeTopic 2 minVideo of the American lifestyle (tees up the issue visually) 10 minState of Wellness : Wellness defined 13 minWellness programs – Overview 13 minWellness Incentives Overview of incentives (law, types, etc.) Non-cash incentives – evolution and application 5 minSo what? How wellness can impact your (business) health!

3. Health Globally..\..\..\Video\Dean Ormish.mpg

4. Fast Food Nation Health Globally DeanOrnish_1- 55_2-36.mov

5. State of Wellness in US

6. MORE ON HEALTHCARE THAN COFFEE

7. We’re #1! US Ranks # 1 per capital health spending # 36 life expectancy # 39 infant mortality # 43/42 adult mortality.

8. The US Standard

9. “IF 70% OF CHRONIC DISEASES ARE DIRECTLY RELATED TO LIFESTYLE CHOICES, THEN WE’VE GOT TO…ADDRESSES THE 20% OF THE POPULATION THAT DRIVES 80% OF HEALTHCARE COSTS” We have met the enemy…

10. Major Health Risks

11. Personal and Financial Crisis! Since 1950, Healthcare costs increased 247 times! Healthcare spending = 17.6% GDP “25 by 25”

12. Wellness Programs – Overview

13. Wellness Programs wellness initiatives Allow organizations to be proactive in preventing illness and promoting healthier lifestyles for employees workplace wellness Programs designed to improve the health and well-being of employees (and their families) to enhance organizational performance and reduce costs

14. Wellness Program Focus Behaviors and health risk factors Reduce chronic illness Provide continuum of support

15. Wellness Program Elements Awareness / Education Health Risk Assessments Activity and Weight Mgmt Behavior Modification

16. Wellness Program Rationale Source: American Institute for Preventive Medicine

17. Effective Wellness Program Design  Culture of wellness  Executive example  Baseline data  Long term view  Communications & education  Confidentiality of data  Incentives & Rewards  Employee engagement  Individual and participation Options  Vendor management  Measurement  Verification  Legality

18. Wellness Incentives – Overview

19. Incentive Legislation (HIDDEN SLIDE)

20. Wellness Legislation HIPAA No Discrimination 20% Cap on Attainment Incentives PPACA Attainment incentives up to 50% of coverage cost

21. Incentives to the Rescue! “Changing behaviors is the most significant challenge…” Non Cash awards increased voluntary participation by 64%!

22. National Business Group on Health (Helen Darling, President of the National Business Group on Health, Safety & Health Magazine, June 2005 ) “The best way to help employees without turning them off is to use positive incentives, not negative, and give lots of options.”

23. Incentives Are Crucial Can’t obtain participation goals without incentives – Watson Wyatt For 50% HRA Participation: $50 incentive

24. Incentive Thresholds Participation increases 7% for each $100 increase in incentive value. For 60% participation in broad wellness programs: invest $356 For 60% participation in HRA completion: invest $163

25. How Incentives Used 89 % of corporate wellness programs offer incentives:  Merchandise and gift cards (53%)  Promotional items (44%)  Pre-tax cash in HSA or FSA account (32%)  Health plan premium discount or credit (32%)  Mandatory HRA to participate in benefits (15%) Michael Nadeau, President and Chief Executive Officer, Viverae

27. Change in Incentive Usage Survey of NAM and ERC Membership

28. So what? How wellness can impact your (business) health!

29. Next Steps Workplace Wellness Study provides comprehensive resource Lead by example (your wellness program?) Umbrella recognition program - include wellness Employee engagement – recognition and wellness key elements Travel, merchandise, cards, and premiums as usual, drive results!

30. What Comes Next?

31. 31 Give us “The One Big Thing”