healthy advantage rewards
DESCRIPTION
Healthy Advantage Rewards is a new wellness product offered to employers through Security Health Plan. Visit www.securityhealth.org/healthyrewards for more information.TRANSCRIPT
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Healthy Advantage Rewards
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Healthy Advantage Rewards Overview
• New value-added product from Security Health Plan that motivates your employees into taking the next step toward achieving a healthy lifestyle by completing certain healthy activities.
• Designed to help you reduce health care costs by keeping employees healthy.
unhealthy health chronic health care behavior risks disease costs
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Healthy Advantage Rewards Overview
Employee completes specific healthy activity
Employee receives funding to use for paying for the deductible and/or coinsurance portions of their out-of-pocket health insurance costs
Employer incents specific healthy activities for their employees (Security Health Plan members) through a health reimbursement arrangement (HRA)
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Healthy Advantage Rewards Overview
• Administered by Diversified Benefit Services, Inc. (DBS) through a health reimbursement arrangement
• Available July 1, 2009 for fully insured and self-funded groups
• Complies with HIPAA
• Employers determine incentive type, amount and eligible participants
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Advantage to Employers
• Helps increase employee health, productivity and morale
• Helps make health care coverage more affordable to employer and employee
• Provides flexibility
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Flexibility
1. Choose which incentives to offer
(List may be expanded as new administrative capabilities become available.)
Incentive
Life Focus health risk assessment
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
Flu vaccination
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
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Research
Tobacco- Smokers are absent from work 6.5 days per year more than non-smokers. Approx. 8 percent of a smoker’s working hours are spent smoking.
Flu vaccination- adults age 65 and younger that have been vaccinated see a:- 34 to 44 percent reduction in
physician visits - 32 to 45 percent reduction in
lost work days - avg. annual savings of
$13.66/person
Cholesterol screening- 1 in 3 people will die of cholesterol-attributable coronary heart disease
Glucose- diabetes can set in as far as 10 years before symptoms appear. (approx. 1 in 5 people in the U.S. have pre-diabetes) - people who become diabetic
between age 40-49 lose 10 years of life
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Flexibility
2. Choose funding amount Example:
Incentive Flat dollar amount
Varied amount (based on perceived value of incentive)
Life Focus health risk assessment $25 $50
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
$25 $50
Flu vaccination $25 $25
Participation in a disease management program
$25 $25
Annual preventive service exam $25 $25
Annual mammogram $25 $25
Cholesterol screening $25 $25
Fasting blood sugar (glucose) screening $25 $25
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Flexibility
3. Designate primary and secondary incentives Example:
Incentive Primary incentive (must be completed before other healthy
activities are incented)
Secondary incentive
Life Focus health risk assessment
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
Flu vaccination
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
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531430
9638
37543
0 100 200 300 400 500 600
HRA completion w/o incentive
HRA completion w/ incentive
DM program participation w/o incentive
DM program participation w/ incentive
Received flu shot w/o incentive
Received flu shot w/ incentive
Incentive Comparison (2007-2008)
Pilot Group
772% net increase
152% net increase
23% net increase
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IncentivesEmployers must have:a. an incentive account with base
funding of at least the minimum incentive amount
Example: If the minimum incentive is $50 for the flu shot, the minimum base funding for the HRA needs to be $50.
Base funding• is separate from funding for
other incentives • activates incentive accounts• is available to employees after
the incentive account is open
b. electronic funds transfer arrangement with DBS
Incentive Amount
Life Focus health risk assessment $75
Non-tobacco user or completion of the Wisconsin Tobacco Quit Line
$75
Flu vaccination $50
Participation in a disease management program
Annual preventive service exam
Annual mammogram
Cholesterol screening
Fasting blood sugar (glucose) screening
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Diversified Benefit Services, Inc. (DBS)
• A third party administration firm dedicated to excellence in employee reimbursement programs and other unique employee benefits. – Founded 1987, located in Hartland, WI
– Privately held company with 55 employees
• Specializes in design, communication, enrollment, compliance testing and third party administration of flexible spending accounts, health reimbursement arrangements, transportation plans, health savings accounts and premium only plans
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Diversified Benefit Services, Inc. (DBS)
• Dedicated to providing exceptional customer service and educating participants on available benefit services
• Access to account information online through Advanced Strategic Administration Program (A.S.A.P.®)
– view claim and reimbursement information
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Costs
• Diversified Benefit Services, Inc. will charge employers who enroll in the program:– set-up fee ($3.25 per insured employee- $90 minimum)
– $4.35 per contract (per insured employee), per month for administering the HRA ($90 minimum contract fee per month)
• No additional administration cost from Security Health Plan to employers or members
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Cost SavingsWithout Healthy Advantage RewardsEmployer A- $250 deductibleEmployees 25Premium PEPM $ 880 (PEPM=per employee, per month)Monthly premium $ 22,000Annual premium $ 264,000
With Healthy Advantage Rewards-scenario 1
Employer A- $1250 HDHP deductible Employees 25Premium PEPM $ 720Monthly premium $ 18,000Annual premium $ 216,000Premium savings per year: $48,000
$625 HRA incentive account/subscriber: $15,625HRA set-up fee ($3.25/ee- $90 min) $ 90HRA account fee from DBS ($4.35): $ 1,305Total incentive account cost: $17,020Total potential savings after maximumincentive account funding: $30,980
With Healthy Advantage Rewards-scenario 2
Employer A- $1000 deductible, $25 office visit copayEmployees 25Premium PEPM $ 800Monthly premium $ 20,000Annual premium $ 240,000Premium savings per year: $ 24,000
$500 HRA incentive account/subscriber: $12,500HRA set-up fee (3.25/ee-$90 min) $ 90HRA account fee from DBS ($4.35): $ 1,305Total incentive account cost: $13,895Total potential savings after maximum incentive account funding: $10,105
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Advantage for Members
• Members can use the money in their Healthy Advantage Rewards incentive account to cover deductible and/or coinsurance portions of their out-of-pocket expenses
• Online tracking– Security Health Online: track incentive completion status
– DBS portal: check status of deductible and/or coinsurance claim, monitor incentive reimbursement status
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Advantage for Members
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Thank you for learning more about
Healthy Advantage Rewards
Contact your independent insurance agent or the Security Health Plan Sales Department at 1-800-622-7790 to add this benefit to your coverage.