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'
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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