1. CREATING AN INCENTIVE BASED WELLNESS PROGRAM THAT DRIVES RESULTS Dr. Ashok Rai, President / CEO of Prevea Health

2. TODAY’S BUSINESS ENVIRONMENT Businesses are struggling What can business do?  Identify cutbacks  Reduce benefits - insurance offerings or offer higher deductibles  Create savings through healthier employees

3. THE CASE FOR WELLNESS For every dollar spent on a company wellness program, the estimated cost return in savings is between $2.30 and $10.10 through decreased absenteeism, fewer sick days, lowered health and insurance costs, and improvements to employee performance and productivity.

4. EMPLOYEE WELLNESS PROGRAMS ARE IMPORTANT TO WORKPLACE BENEFITS It goes beyond the healthy people getting healthier Employees start to take control of their own health Where do you start?

5. INCENTIVE BASED WELLNESS PROGRAMS Designed to motivate employees to a healthier lifestyle  Wellness program incentives are low cost for the money saved  Employees will be getting fit  Less sick days  More productive  Better attitude

6. THE FOUR KEY COMPONENTS

7. Number 1: KNOW YOUR DATA Design programming specific to your organizations' risk factors and prevent those risks from becoming claims.  Start with an Health Risk Assessments (HRAs) or review you own claims and pharmacy data  Identify employee goals – survey tools  Weight loss or maintaining weight  Healthy eating  Strengthening

8. Number 1: KNOW YOUR DATA Evaluate Global and Focused Data to determine the right programming Global Data  Determine the wellness needs for the majority of your employees Focused Data  Results may indicate you have a large population of employees with a common chronic disease, such as, diabetes, obesity, hypertension, or cardiovascular disease

9. Number 2: EDUCATION IS THE FOUNDATION Education should be convenient Make learning fun and entertaining Consistent distribution of information  Lunch & Learns  E-mail or intranet  Home mailings

10. Number 3: PUT THE RIGHT PEOPLE IN CHARGE A cross section of your company’s population  Not just the “healthy” people  The team could include leaders, HR, department managers, front line staff  Responsible for constant communication which creates a successful results

11. Number 4: PROGRAMMING Individual or team competitions Establish rewards/prizes that motivate Don’t forget special programming for your focused data You can’t buy a healthy lifestyles. You want to encourage initial participation.

12. Number 4: PROGRAMMING Offer coordinated weekly events and information to keep employees on the right track  Holiday weight-maintenance challenge  12-week team challenge for weight loss  6-week challenge for healthy eating habits Offer focused programming around special disease states with similar incentives  Pre-diabetes programming Keep it interesting and different

13. EXAMPLE: A SURVIVOR CHALLENGE 7-week team challenge with new wellness related challenges each week  Groups of four  Challenges include: drink enough water, limit TV time, enough fruits & vegetables  Each member of the team must “survive” for the team to advance to the next week  Participants receive daily tips and are sent to validate challenges

14. “FABULOUS” PRIZES At the end of the competition, the participants with the best improvements are entered into a drawing to win prizes.  Gift cards– a very effective incentive!  Prize incentives such as gift certificates to heart healthful restaurants; music player to use while exercising, emergency kits, or any other prizes that would motivate your employees.  T-Shirts, water bottles, or other affordable wellness rewards

15. KEEP ACTIVE PARTICIPANTS MOTIVATED Reward them by providing:  Discounts on employee medical insurance premiums or co-pays  Fitness Club discounts or enrollment fee coverage  Flextime - Flexible work time options  "Wellness Days" off work

16. WHAT YOU RECEIVE FROM THE CHALLENGES ROI  Tracking data, claims data, follow-up biometrics A healthier workforce  Less downtime Possible discounts on health insurance premiums  Self funded accounts can directly monitor this

17. EMPOWER YOUR EMPLOYEES TO LIVEWELL Create a change in culture People become engaged in their wellness Healthy living becomes natural, ultimately without the need for prizes or rewards This is the key to a sustained healthy workforce. Incentive based programs, alone, can become old creating no long-term behavioral change

18. WHAT WE DID

19. ONE YEAR OF HEALTHY NUMBERS Our employees lost a total of 1,256 pounds during the Lose & Win Big, and 102 people lost at least three percent of their body weight. 161 people successfully maintained their weight over the holiday season during Maintain Don’t Gain. 44 people gained an in-depth knowledge of Nutrition through our 6-week Nutrition Class. 152 people survived the grueling seven week Survivor Challenge.

20. ONE YEAR OF HEALTHY NUMBERS 165 employees reached 1000 points and earned $25 in the process. 53 employees reached 2000 points and earned an additional $50. Of those 53 employees, four names were drawn and each won $100 gift certificates. 110 people found support and a new level of fitness through our Women’s Wellness Club. The club has lost a total of 680 pounds and 1,005 inches in it’s first year!

21. ESTIMATED PROGRAM COST – 1 YEAR Item Cost Points System Rewards 1000 points $ 4,125.00 Points System Rewards 2000 points $ 2,650.00 5 - $100 gift cards (2000 point earners) $ 505.90 Body Fat Testing Machines $ 540.00 Scales for Hansen, SSB & WDP $ 299.43 Prizes - -- PTO (208 hours) - Spa Gift Certificates, Massages, Catering Lunch, Company Store Credit $ 1128.81 Total Cost of Program $ 9,249.14

22. THE SAVINGS RATIO Improved ratio between billed premiums vs. paid claims  2008 – 90.4%a difference of $883,938  2009 – 85.5%a difference of $1,398,792  2010 – 83.7%a difference of $1,662,754

23. Initial Health Screening Performed  Total of 14 screened  11 qualified. 10 females. 1 male. FOCUSED DATA – Pre-diabetes Program

24.  11 participants, guided by an integrated wellness team, committed to a 12 week, 2x/wk, education and exercise program to learn how to control/manage their health  Personalized Approach - each individual determined their own health goals  Worked with Registered Dietitian, Life Coach and personal trainer on an individual basis FOCUSED DATA – Pre-diabetes Program

25.  Participants were educated on the pathophysiology of diabetes – how diet modification, exercise and other healthy lifestyle choices can play a role.  They were oriented to the Fitness Club including the cardiovascular equipment, Free Motion weight circuit, Free weight area, group fitness instruction and classes including yoga, zumba and kickboxing. FOCUSED DATA – Pre-diabetes Program

26. After 12-weeks the pre-diabetes group:  Lost a combined 85 total pounds lost  Decreased BMI of 14.66 points  But more importantly, they changed their quality of life and invested in a healthier lifestyle FOCUSED DATA – Pre-diabetes Program

27. WHAT OUR EMPLOYEES SAID “The challenge helped me lose weight because the people on my team were supportive; we didn’t want to let each other down. I saw my teammates losing weight and that encouraged me.”

28. WHAT OUR EMPLOYEES SAID “Since joining the Wellness Incentive Program, I have lost 30 pounds and hope to lose another 15. The camaraderie that one feels being part of these groups, really pushes you to excel, plus you are able to build up one another along the way.”

29. WHAT OUR EMPLOYEES SAID “The challenge not only motivated me, but my husband. We both lost about 15 pounds each. Not only that, my kids are learning the importance of making sure exercise is part of a daily routine and to stay healthy, and I can’t tell you how much that means to me.”