2013 Health & Wellness Survey Results Health Improvement Solutions Member Meeting October 24, 2013 2013 Health & Wellness Survey Results Health Improvement Solutions

Copyright Minnesota Health Action Group and Second Story Sales Company About the Survey Survey objective To understand the Minnesota employee benefits marketplace trends and provide a tool for The Action Group’s members and survey participants to benchmark plans. Deliverables Report from external and internal survey responses comparing and summarizing participant’s views on the following: Plan costs and contributions. Health plan strategy and benefits. Evaluation of Minnesota networks and administrators. Eligibility rules. Health improvement solutions. Health reform. Purchasing decisions for today and tomorrow. Thoughts on ways to improve the health care system. Surveys were conducted online from 4.24.13 to 5.3.13 Full survey results provided to participating companies Meeting to discuss results Copyright Minnesota Health Action Group and Second Story Sales Company

Number of Employees in the Twin Cities (10% decrease in 2013) Participating Organizations Denotes 2012 and 2013 participant Number of Employees in the Twin Cities (10% decrease in 2013) 143,944 Total Participants 22 Number of Employees in Minnesota Outside the Twin Cities* (47% increase in 2013) 98,285 Average Age 42 *Survey asked for number of employees in Minnesota outside of the Twin Cities. Includes estimates where not able to be provided. Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company What are you hoping to accomplish with your health plan strategy this year? (Check all that apply.) 96% 91% 82% 74% 30% 18% 17% 17% 17% 14% 9% 9% 9% 5% 4% Health improvement and cutting costs are the overwhelming goals of respondents health plan strategies in 2013. Consolidating vendors showed the largest decrease in 2013. Copyright Minnesota Health Action Group and Second Story Sales Company

Health Improvement Solutions Select Survey Findings

Health Improvement Solutions Findings An overwhelming majority of respondents offer health improvement solutions (21 of 22 organizations) with the majority administered by the health plan. Gift cards and premium differentials (both penalty or incentive) continue to be highly utilized to incentivize participation in wellness programs.  The most common average annual value of incentives for participation in health improvement activities is valued at over $500. The use of wellness champions continues to remain high with 73% of organizations using wellness champions in 2013 as compared to 70% in 2012. A greater number of organizations are pleased with the results of the participation that their health improvement initiatives garnered (80% of respondents in 2013 compared to 60% in 2012). Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company Do you currently offer any health improvement solutions? (Check all that apply). 95% 87% 82% 82% 70% 70% 73% 70% 70% 68% 68% 61% 64% 61% 57% 50% 30% 27% An overwhelming majority of respondents offer health improvement solutions (21 of 22 organizations). Of the solutions that are offered, health risk assessments are offered by all organizations with phone condition management programs and online wellness programs being widely offered as well. Copyright Minnesota Health Action Group and Second Story Sales Company

Who deploys your health improvement solutions? (Check all that apply.) 73% 59% 57% 52% 41% 30% There a clear preference for offering health improvement solutions through the existing health plan, with 70% of respondents deploying solutions in this manner. Copyright Minnesota Health Action Group and Second Story Sales Company

Health Improvement Vendor Findings BCBS MN is the most prevalent vendor with eight respondents followed by HealthPartners with five respondents. Many more vendors are contracted with for health improvement programs including the following: CIGNA, Health Fitness Corporation, Healthways, Humana, Journey Well, Medica, MMSI, OptumHealth, PreferredOne, PureWellness, RedBrick Health, StayWell, UHC and Wellness Innovation Nursing Services. With very little exception, responding organizations rated their health improvement vendor’s performance as good. Copyright Minnesota Health Action Group and Second Story Sales Company

Do you have specific criteria by which to evaluate vendors? Fifty-eight percent of respondents have specific criteria by which they evaluate vendors. Specific criteria are mentioned on the following slide. Copyright Minnesota Health Action Group & Second Story Sales Company

Copyright Minnesota Health Action Group & Second Story Sales Company Do you have specific criteria by which to evaluate vendors? (continued) Mutually agreed upon performance guarantees and Service Level Agreements (SLAs). Customer service, webpage access, accuracy. Cost, customer service, results. ROI. Primary evaluation is through use of contractual performance guarantees. Performance guarantees. Valuation document. Established internal standards and performance guarantees. Best of class, aligns with our road map (goals and objectives), innovative and creative, consultative, good value (price and quality). Copyright Minnesota Health Action Group & Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company Do you have an internal wellness champion? If yes, who is it? (Check all that apply.) 94% 69% 69% 63% 44% 31% 31% 31% The use of wellness champions has increased slightly in 2013 as compared to 2012, with 73% of organizations using wellness champions in 2013 as compared to 70% in 2012. HR and local representatives are the most common champions. Two organizations have employee volunteers as champions. Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company Do you have an internal wellness committee? If yes, how long has it been in existence? As in 2012, formal wellness committees continue to be in place in almost three-quarters of organizations in addition to the use of an executive sponsor (73% in 2013 and 78% in 2012). Organizations that have wellness committees have had them in place for at least two years (new committees were not formed within the last year). Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company What strategies have you used to motivate your employees to participate in certain health related activities or select certain health insurance levels? (Check all that apply.) 65% 55% 52% 45% 39% 39% 32% 32% 18% 9% 9% The use of gift cards and premium differentials (both penalty or incentive) have decreased slightly in 2013. As a percentage of total respondents, gift cards decreased to 55% in 2013 compared to 65% in 2012 and premium differentials decreased from 52% in 2012 to 45% in 2013. Cash is offered as an incentive by 18% of respondents. Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company What is the average annual amount/value of these incentives per employee? 32% 32% 27% 23% 14% 14% 14% 14% 9% 9% 5% 5% The most common average annual value of incentives for participation in health improvement activities is valued at over $500. Additionally, those providing incentives of less than $100 increased to 27% in 2013 as compared to 23% in 2012. Fifty-five percent of responding organizations provide incentives valued less than $300. Copyright Minnesota Health Action Group and Second Story Sales Company

Copyright Minnesota Health Action Group and Second Story Sales Company What is the trigger for a participant to earn the reward? (Check all that apply.) 68% 65% 14% 13% 9% 5% 4% 5% The majority of respondents do not require participants to achieve certain outcomes to earn health incentive rewards which is consistent with 2012 results. Copyright Minnesota Health Action Group and Second Story Sales Company

What average level of participation did these strategies garner? Approximately 40% of respondents had participation of over 50.1% in completing an HRA while 81% had at least 20.1% of employees complete a biometric screening. A greater number of organizations are pleased with the results of the participation that their health improvement initiatives garnered, (80% of respondents in 2013 compared to 62% in 2012). Copyright Minnesota Health Action Group and Second Story Sales Company