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HomeMy WebLinkAbout3.a. Health Management Program UpdateAGENDA ITEM: Health Management Program Update AGENDA SECTION: PREPARED BY: Dawn Weitzel, Assistant City Administrator Christine Watson, Management Analyst AGENDA NO. ATTACHMENTS: 2005 Claims Report Article Helping Obese Workers Report: Workplace Wellness APPROVED B RECOMMENDED ACTION: Discussion 9 ROSEMOUNT CITY COUNCIL City Council Work Session. April 12, 2006 Acct' -0-1 EXECUTIVE SUMMARY ISSUE: Recent health care cost studies continue to show a steady increase in premiums paid by employers and employees. Since moving to a consumer driven health care plan two years ago, the City of Rosemount has experienced a dramatic decrease in employee medical usage. In fact, this year the City had only a 1 increase from 2005 premium rates Employees have stated that they now think twice about going to the doctor at the onset of a cold or flu and some are utilizing less expensive prescriptions or going to the Minute Clinic instead of Urgent Care. In addition, many belong to athletic clubs through a discounted program paid for by premium rates To perpetuate this shift towards a more conscious health care consumer, the Insurance and Benefits Committee members are proposing a weight -loss competition open to all employees as part of the City of Rosemount's Wellness Program This contest would encourage employees to lose weight, become more physically fit, and become more educated about issues affecting their own well-being The contest incentives will include small fitness- related items, with a grand prize of one additional vacation day for each member of the winning team BACKGROUND: Many companies use wellness programs to improve employee morale, reduce health insurance costs, and decrease absenteeism Some companies report double -digit decreases m sick leave, chnic /hospital visits, disability days, and per capita workers compensation costs as a result of their corporate wellness programs. Most importantly, a wellness program is an inexpensive way to show employees that their employer is interested in them as total persons. The Biggest Loser weight -loss contest is designed to bring employees together in an effort to lose weight, improve their overall health, and create a healthier workplace atmosphere. By design, the contest incorporates three of the Core Values for Rosemount employees: Teamwork, Accountability, and Integrity. The 12 -week contest will begin May r, with 3 -5 member teams competing against each other to see who can lose the greatest percentage of weight The team with the greatest percentage of weight loss will earn an additional vacation day off for each member of the team. Throughout the 12 -week contest, incentive prizes will be awarded to the individuals and teams making the most progress, as determined by penodic weight checks. These incentive prizes will be fitness onented, and may include such things as. fitness videos, exercise balls, yoga mats, gift certificates to fitness /sports stores, etc. As part of this program, the committee will also arrange to have an individual come in to speak to the participants about wellness issues such as nutrition, exercise, and stress management. To encourage participation in the program, only the employees taking part in the contest will be allowed to attend these short sessions during working hours. The committee will also arrange lunch hour sessions to be paid for by the employee. Here is a summary of the basic rules of the contest: A Contest Judge will be selected to perform the weight checks and document all activity Contest will begin May 1 2006 Contest will end July 24` 2006 Teams will consist of 3 to 5 members Teams must select a team name by May 1" Total team weight will be recorded and tracked by the Contest Judge No individual names /weights will be displayed. Only team names /weights will be used to track progress. Teams will be weighed on the followmg days: 5/1, 6/1, 6/30, and 7/24 Incentive prizes will be awarded on 6/1, 6/30 and 7/24 to both the individual and the team with the greatest percentage of weight loss since the last weight check The grand prize will be awarded on 7/24 to the team with the greatest percentage of weight loss since the beginning of the 12 -week contest The total cost of this program is estimated to be less than $2,000. It is the Committee's belief that not only will this promote a healthier hfestyle, it will also build camaraderie among our employees. SUMMARY: In an effort to promote workplace wellness for all employees of the City of Rosemount, the Insurance and Benefits Committee members recommend Council approval of the Biggest Loser weight -loss competition. If given direction, a Resolution will be brought before Council on April 18. 2 Period Health Premium Paid Claims and Administration Paid Less High Case Claims Actual Claims and Administration Assessed to Group January 2005 41,049 9,750 9,750 February 2005 41,363 10,902 10,902 March 2005 40,713 18,773 18,773 April 2005 41,676 29,553 29,553 May 2005 41,363 32,883 32,883 June 2005 42,012 31,950 31,950 July 2005 42,975 27,636 27,636 August 2005 42,975 100,839 (10,255) 90,584 September 2005 43,289 22,298 (137) 22,161 October2005 44,252 31,781 (187) 31,594 TOTALS 421,667 316,365 (10,579) 305,786 Cities /Counties /Other Governmental Units' Group Insurance Pool Administered by Appletree Institute Claims Report City Of Rosemount LOSS RATIO 72.52% This report does not reflect claims exceeding $50,000 for any particular individual Dunng the renewal process, a claims settlement process for high cases will be determined by the membership and applied to each group's expenence Confidential Information provided by APPLETREE INSTITUTE for the use of its clients Workindex.com article Page 1 of 2 ndex.com' g ate way to human reatura ftlu•om Helping Obese Workers By Lisa Troshinsky cyberFEDS@ Washington Bureau Obesity can cause or exacerbate many health problems such as diabetes, high blood pressure, kidney disease, high cholesterol and arthritis. This health epidemic significantly racks up workers' compensation costs, increases time off taken by employees and interferes with productivity for federal agencies. "All the diseases linked to obesity are either preventable or can be modified with exercise and healthy nutrition," said Lucy Polk, a work/life specialist at the Office of Personnel Management, who presented the session, Creating Healthier Feds Through Healthier Workplaces at the 2006 OPM Federal Workforce Conference held Feb. 27 to March 2 at the Baltimore Convention Center in Maryland. "Workplace health programs enhance productivity, reduce absences and workers' compensation costs, and increase focused time at work," she said. There are many ways federal agencies and human resource managers can prevent and modify the negative effects of obesity. These include creating health promotion programs, encouraging employees to tap into the resources of their federal health benefits for screenings and dietary information, and taking advantage of facilities already in place for workplace health such as an office fitness center, a walking path outside, or even stairs. "Over one million feds are likely to be overweight or obese, according to the Centers for Disease Control and Prevention. If each one of those employees lost only one pound, that would equal more than 600 tons," Polk said. In addition, researchers at the CDC and RTI International have found the average annual per capita increase in medical expenditures and absenteeism associated with obesity ranges between $460 and $2,500 per obese federal and private sector employee, with costs increasing as body mass index increases. Tools that work HOME TRAINING SITE STAFFING SITE BENEFITS SITE STORY ARCHIVE FINANCIAL EDUCATION CLINIC HR JOBS SALARY WIZARD r HR NEWS ABOUT US r LEGAL CLINIC Employee Health Send this article to a colleague April 7, 2006 From the editors of Human Resource Executive' 4: tAc et •SSiettea 'n.WAS .....rnsiv ,..r... •rlwre.r.r_ra +vats lasita •w.fwa.wM te•Y>rM Workplace health programs are useful tools to prevent the effects of obesity. Polk said 75 http: /www.workindex.com/ editorial /benefit/ben0604- h- 01.asp 04/12/2006 Workindex.com article Page 2 of 2 percent of employers public and private offer comprehensive employee health promotion programs and 75 percent of their employees use these programs. "There are many low -cost and no -cost tools available to promote health awareness," she said. Here are some tools and suggestions for agencies' health promotion activities: Inform employees about Mvpvramid.gov which helps employees track calories, exercise and weight loss. Encourage the use of federal health insurance for preventive screenings. Offer healthy food like fruits and vegetables at the workplace cafeteria. Bring in healthy food instead of donuts on Fridays. Offer flexible work hours to fit employees' exercise schedules. Offer and encourage participation at workplace health promotion seminars. Create a culture of support for healthy awareness. Do not demoralize or ostracize overweight employees; rather have patience and support their goals to lose weight. Conduct a poster campaign of health- related workplace activities. Sign your office up for a 5K walk/run event. Send generic, short, occasional emails about health information and resources. Discuss health promotion at mandatory gatherings. Offer short-term, drop -in exercise and yoga classes. Conduct games and contests, but avoid weight loss competitions. An example of an appropriate contest: During Halloween, fill a bowl with candy corn and have employees guess the number of calories in the bowl for a prize. Send comments or questions about this story to hreletters@lro.com. Read from the Workindex.com archive All materials are copyright of Workindex.com, 2006. All rights reserved. http. /www.workindex.com/ editorial /benefit/ben0604- h- 01.asp 04/12/2006 WORKPLACE WELLNESS Dakota County High Performance Partnership Project Employee Health Care Committee Molly Park, Sunfish Lake Tom Lawell, Apple Valley Dawn Strauss, Apple Valley Will Volk, Dakota County Dawn Weitzel, Rosemount Lori Peterson, Eagan Joe Fischbach, Farmington Melanie Mesko Lee, Hastings Jill Hansen, Burnsville Jenelle Teppen, Inver Grove Heights Cindy Joosten, Lakeville HEALTH MANAGEMENT PROGRAMS (IT'S NOT YOUR GRANDMA'S WELLNESS PROGRAM ANY LONGER) Health Management Programs, Health Promotion Programs, Wellness Programs The study of workplace wellness has been in existence for more than 30 years. During that time it has advanced from a field typically characterized by trial and error, to one more akin to a science The past three decades have also yielded evidence that health promotion programs can produce tangible outcomes. There are presently more than 500 studies documenting the health impacts of health promotion programs. In addition there are more than 40 studies capturing positive financial impacts (Chenoweth, From 0 to 500 in 30 Years Flat 2002). Why the extensive studies? Employers are placing more emphasis on viewing their employees as assets requiring investments that are critical to long -term performance and growth. Companies have found that a fundamental component of this philosophy is the benefit of workplace health promotion programs. Workplace health promotion is now being considered as an essential feature of employment and no longer just a trend. More focus is being placed on productivity, employee development and wellness as a long -term strategy. "Employee development packages" now include Intranet curriculum, on- demand training, traditional meetings, individual counseling, personal training, events, exhibits, friendly competitions, annual health screening, and positive support and attention. Stress in the program is placed on employees understanding thew medical and behavioral choices and the support and education available through the wellness initiatives. Health management and employee development are considered part of a business strategy. Can Health Promotion Programs really produce Financial Outcomes? Yes, according to literature reviews by Steve Aldana from Brigham Young University. In the 2001 Anrencan Journal of Health Promotion literature review, Dr. Aldana reviewed 72 studies that evaluated the relationship between healthcare costs and health risks; absenteeism and health risks; and program impact on healthcare costs and absenteeism. The literature review showed very positive results. WORKPLACE WELLNESS 2 More specifically, a sample of targeted programs includes: Back Care Programs. Coca Cola Bottling reduced back mlunes by 32% and DuPont reported that it saved $10 million from its back care program (1990). Body Mass Index Five recent studies with large sample sizes document a positive correlation between obesity and absenteeism (Aldana, 2001) Research has shown that worksite competitions are effective in helping employees to achieve weight loss. Cardiovascular Health. Specific heart disease programs have been shown to be cost effective The Travelers Insurance Company, over the course of four years, saved $3.40 for every dollar spent on its employee wellness program, which focused on heart disease prevention (Pelletier, 1993). Specific intervention strategies, such as dietary intervention and smoking cessation, have been shown to be less costly than drug therapy when dealing with cardiovascular health. A 17- arucle review by Pelletier also reveals that providing opportunities for individuahzed counseling for high risk employees may be the critical component of an effective intervention. Exercise! Physical Activlty: Even early years of research in worksite wellness demonstrates positive outcomes from physical activity programming. A cross sectional analysis of employees at the Mesa Petroleum Company showed that those who participated in the physical activity program had a significantly lower average medical cost of $173 compared with $390 for non participants. Recent studies have shown that in addition to claims reduction, fitness programs generate improvements in absenteeism, productivity, stress, recruitment, retention, corporate image, satisfaction, and employee morale. DuPont experienced a reduction m absenteeism of 47.5% over six years attributed to its programming (Ellington, 1992). Additionally, it was found that hourly employees who participated in the fitness program used 145 fewer disability days than non participants. This resulted in a net total of 11,726 fewer disability days for the company (Pelletier, 1993). Injury and Illness Prevention: Aspen Imaging International lowered its compensation claims by 50% m a two -year period by concentrating on injury and illness prevention. Prior to the implementation of program, Aspen Imaging recorded 120 claims totaling $600,000. During the first two years of the program, claims dropped to $221,000 (Moorehouse, 1992). WORKPLACE WELLNESS 3 Smoking. Smoking cessation programs provide immediate cost savings through reduced absenteeism Savings are also achieved from smoking cessation programs because costs related to long -term disease and disability are reduced. UNUM Life Insurance Company reported an estimated annual savings of $132,000 to $237,000 from its smoking cessation programming, with a return of $181 for every dollar spent on the program (Olson, 1995). Johnson Johnson, General Motors, The Steelcase Corporation, DuPont, and Citibank have all shown successful results from health management programming. Among the findings: hospitalization claims were lowered, there was a reduction in the high -nsk pool; sick days decreased; and health savings were realized. What is a Healthy Employee Worth? Medical costs are not the primary outcome of poor health they are secondary. Poor health leads to symptoms and chmcal outcomes that lower functionality and increase the need for expensive care. The same symptoms, clinical outcomes, and lowered functionality also interfere with a person's ability to perform at a high level in the workplace., Healthy employees not only cost less in medical care, they also are more producnve at work, absent less often, experience fewer injuries, and arrive back on the job more quickly after they do get injured. Focus on Human Capital Investment Companies with successful health management programs believe that the value of a person to an organization extends beyond any single outcome or cost. Mazarr, in his book entitled Global Trends 2005, makes the argument for health promotion in the message that while human capital has always been important, it will become exponentially more vital to organizational survival in the near and distant future. The changes seen in the last century will pale in comparison with the changes to be seen in the first quarter of this century. Therefore, it stands to reason that if human capital is going to become more important, those individuals making up the human capital equation will need to be healthy and ready to meet the challenge. Human capital, which Mazarr refers to, relates to the many abilities and resources an employee brings to the organization. This includes skills, experience, attitude, vitality, and physical and mental effort. The concept of human capital proposes that a company should invest in its "humans" to increase their abilities, and thus get a retum on human capital investment. This is best typified as training, new technology, or organizational support. The companies found to have a competitive advantage also include improving the health of their employees in this mix WORKPLACE WELLNESS 4 Poor health not only adds medical costs it interferes with one's ability to do work and be at work. Poor health diminishes work capacity. Poor health erodes human capital. Conversely, as individuals move along the path from illness to wellness, capacity and ability to work improves. As such, investments in good health are investments in human capital. (Lynch, What is a Healthy Employee Worth? 2002). Consider the relevance the following questions have on worksite operations. X What if all workers had two fewer days absent? X What if an employer could get just four percent more effort from its workers? X What if workers' compensation claims were reduced by half? X What if organizations could reduce the number of workers needed, because everyone was focused, on -task, and on the job? These outcomes do not have to be hypothetical. Productivity research indicates that individuals with multiple risk factors are absent more, injured more, and return to work more slowly than individuals with fewer risk factors A StayWell study indicated that individuals who participated in health management programs reduced their use of disability benefits by several days per case. The value of the combined loss of effort from sick absences, disability, and workers' compensation far exceeds the difference in medical costs between low- and high -nsk employees. Health Promotion and Disease Prevention Programs are a Wise Investment Few people would argue that modifiable risk factors obesity, lack of exercise, poor diet, excess drinking, unsafe sex, and high stress result in disease and premature death. (Ron Gozel Speaks his Mind, 2002) Most people, however, say that they're still not convinced that money spent on prevention will save money on the treatment side. Today the body of literature is growing and providing documentation that prevention does save money This research will make people more aware of health promotion's ability to improve health and reduce unnecessary expenditures. When you start to add up the medical dollars, absenteeism, disability, workers' compensation, and safety issues, organizations are spending a lot of money on health and productivity losses. Many of the disease conditions responsible for skyrocketing expenditures can be traced back to modifiable risk factors. For example, heart disease is the number one killer in this country, but it's also the most expensive disease in corporate America. If you consider the precursors of heart disease the behaviors that put you at risk they're all modifiable: obesity, lack of exercise, diet, smoking, high blood glucose, high cholesterol, high blood pressure, and stress. Employees with nsk factors cost money. A majority of the modifiable risk factors result in significant cost expenditures to the employer; their consequences represent WORKPLACE WELLNESS 5 roughly one quarter of total healthcare expenditures By changing the risk profile of the population, the cost structure is changed. As people move from high -nsk to low risk, or are prevented from moving from low -nsk to high-risk, organizations can save money. Taking a Serious Look at Health Management Employers are now turning to health management programs as a proactive and long- term prevention strategy that will result in more positive employee attitudes and morale and increased productivity and in the long run, lowered medical costs. Rationale for health management programs: Today we spend almost all of our health care dollars on treatment of disease instead of prevention; There is indisputable evidence that lifestyle and behavioral risk factors cause a large proportion of preventable disease in our society; Many such preventable diseases such as coronary artery disease, various forms of cancer; diabetes, and HIV /AIDS impose a large cost burden on our society; Many of the risk factors that cause these expensive diseases are modifiable through the use of scientifically -based a well- implemented health promonon /disease prevention programs; When the risk profile of a population is improved, medical, absenteeism and productivity costs are also reduced; and finally There is mounting evidence that well designed and well- resourced health promotion and disease prevention programs provide a payback for that investment, multi-fold There is a growing hterature base that supports the assertion that individual and multi- component health promotion /disease prevention programs achieve remarkable cost benefit ratios and that there is the potential for a significant return on investment. (Goetzl, ROI PDQ 2002) WORKPLACE WELLNESS 6 WHAT DAKOTA COUNTY DAKOTA COUNTY CITIES ARE OFFERING AS HEALTH MANAGEMENT PROGRAMS PROVIDER HEALTH MANAGEMENT PROGRAMS OFFERED Burnsville Shape -Up Challenge (Medico) Health /Wellness Fair 10,000 Step Program Holiday Healthy Eating Seminar Year -round Wellness Program (including varying campaigns) Health Risk Assessment Health /Wellness Fair Flu Shot Rosemount Member of TEAM EAP Services Reduced Seminar Prices Discounted Fitness Program through BCBS Monthly In -House Blood Pressure Checks Free to employees Flu Shot Quarterly Employee Newsletter Worksite Wellness Program offered through consortium Consultation /education to assist employees in meeting wellness goals Online wellness education Telephone and e -mail access to a wellness coach for support Apple Valley Spring Health Fair: Blood pressure clinic, cholesterol and glucose screening Cardiovascular Disease Management Free to employees WORKPLACE WELLNESS 7 SHAPE Weight Management 12 week program Nutrition $60 cost to employees for entire program (possible $30 back for attendance) Menu planning /cooking class Nutrition Food costs Healthy vending machine choices Nutrition Brown bag lunch Seminar with salad bar provided Nutntion $3.00 /lunch cost for employee Walking program Exercise Cost to Employee approximately $10.00 for purchase of pedometer On -site exercise (Int. Pilates) Exercise $40 cost to employee for entire program ($7 per class) Workout area "Taking care of your back" educational materials Safety Stress management educational materials Mental Health Farmington Member of TEAM EAP Services Use of Police Department's Exercise Facility Free to employees, spouses or significant others over the age of 18. Payroll staffers from Medica to promote wellness and /or better healthcare utilization and consumerism. Participated in the health risk assessment that was done by the LOGIS group in 2003. WORKPLACE WELLNESS 8 Future: hold seminars for employees on healthy living, nutrition, etc. Dakota Yoga Classes County Mental Health Monthly /On -Going Weight Watchers Classes Monthly /On -Going Fitness Rate discounts by HealthPartners 10,000 Steps by HealthPartners 8 week program Increase employees' physical activity Pedometers and educational matenals sent to employees Phone Line Class by HealthPartners Partners for Quitting Smoking Flu Vaccination Clinics Offered flu shot to employees and their dependents. Blood Pressure Clinics Offered blood pressure checks and educational materials. Red Cross Blood Drives Held six Blood Drives in 2004. Shape Up Challenge Event An annual event that provides an opportunity for person achievement and fnendly challenges between teams made up of co- workers. Wellness Credit $5.00 monthly County contribution towards the cost of employee benefits that reward healthy lifestyles. Monthly Health Topics Stairway Challenge Event Increase the use of stairs rather than the elevator. Includes stairwell painting and poster purchases. WORKPLACE WELLNESS 9 West St. Paul Discontinued program South St. Paul Lakeville Recently formed a volunteer wellness committee to establish actions. Nutrition Exercise Wellness Beginnings Newsletter Inver Grove Heights South St. Paul is planning a fall health fair through their Parks and Recreation Department directed more to the community. Kickoff week in January Medica Optum provides trainers at no cost Brown Bag Lunch Seminars Informational Booths Provides payroll handouts, newsletter articles, information for weight loss group, etc. "Walk Across America" Competition employees form groups and log walking time First group to walk across America, in theory, wins. Flu Shots Health Partners offer a frequent fitness discount ($20 off membership) Workout Room Hastings Flu Shots Discounted Fitness Program through BCBS EAP Services WORKPLACE WELLNESS 10 WHAT CHALLENGES HAVE WE FOUND? Challenges Organizing health initiatives are labor intensive not enough staff time available Employee participation is difficult to achieve without incenuves Importance of health management programs is not understood by employees, management, State Auditor, and public RECOMMENDATIONS The HIPP Health Care Committee offers the following recommendations in relation to Health Management Programs: Dakota County and Dakota County cities contract with a consultant to develop a one -year health initiative plan to follow. Cities can "invest" according to their needs. Activities are to be organized by the consultant. "Volume price" with other cities (save by combining purchases, i e vending companies which offer healthy alternatives) Create a county-wide health promotion committee 4 ROSEMOUNT ADMINISTRATION WORKPLACE WELLNESS 11