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Employee Health and Incentives

EMPLOYER EMPLOYE VS. Perspectives on Employee Health & Incentives The Costs of Employee Health Employers Employees Guest Check TALE NO. CHECK NO 453272 2 out of 3 can't estimate how Total bill for health care for each employee (employees pick up the difference)" much their employer spends on health benefits $8500 amount spent per employee on health care coverage in 2011 {22}£ -$11,176 Total GUEST RECEIPT CHECK NO AMOUNT 453272 Calculated the monthly spend by employers to be less than $500 per View employees' poor health habits as the biggest challenge to maintaining affordable benefit 23% 61% month coverage? $100 $100 $100 $100 $100 Many are not aware of the connection between their health and the health care dollar, or the positive impact of relatively small behavioral changes Wellness Program Incentives Employers Employees To improve employee health Most don't want to feel forced to participate in wellness7 65% offer wellness programs³ Agree Used incentives with wellness programs » agree that employers are right to offer wellness Used incentives with condition management 59% 77% programs in an effort to control health care costs » favor offering a financial 80% reward to those 37% 54% who meet specific health goals 17% 2011 2012 Disagree How incentives are used5: » oppose charging more for health coverage if they do not participate in wellness 44% provide an incentive based on tobacco-use status 68% programs 29% base on achievement of outcomes such as body mass index or cholesterol » oppose charging more for health coverage if they don't meet health goals 71% 22% apply surcharges to employees for not participating in wellness programs New Guidance on Incentives To make outcomes-based incentives fair and effective with improving employee health, recently published guidance suggests the following: 1> Avoid using a reward or penalty that is so large it discourages participation. » Help employees integrate healthy behaviors by offering personalized support, such as a health coach, so they are more likely to internalize and sustain healthy behavior changes over time. 2» Use the 4 most common targets of weight, cholesterol, blood pressure and tobacco use. 5 » For employees with a medical condition that 3 » Reward for progress toward the standard targets, instead of just rewarding those who meet the goal. makes it difficult to achieve the health standard, defer to the employee's health care provider for a reasonable alternative To read more about the JOEM guidance on outcomes-based incentives, visit www.the-hero.org. standard or a waiver. Sources: 1 The Road Ahead: Shaping Health Care Strategy in a Post-Reform Environment, Towers Watson/National Business Group on Health, 2011 2 Performance in an Era of Uncertainty, Towers Watson/National Business Group on Health, 2012 3 Health Care Survey, Aon Hewitt, 2012 4 Ibid. 5 "Large Employers Expect Health Benefits Costs to Increase 7% in 2013, SHRM 6 "The U.S. Health Consumer is Health-Finance Illiterate and Resistant to Linking Wellness to Health Plan Costs," Health Populi, July 30, 2012 1"Perceptions of Health Benefits in a Recovering Economy: A Survey of Employees," National Business Group on Health, July 26, 2012 * Health Care Survey, Aon Hewitt, 2012 * "Guidance for a Reasonably Designed, Employer-Sponsored Wellness Program Using Outcomes-based Incentives," Journal of Occupational and Environmental Medicine, July 2012 EHealthFitness. © 2012 Health Fitness Corporation

Employee Health and Incentives

shared by smeissler on Oct 05
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Employer vs. Employee perspectives on employee health and incentives. Including cost, wellness program incentives, and new guidance on incentives.

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healthandfitness

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Health
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