wellness in the workplace study

Wellness in the Workplace Study

The impact of a consumer-driven benefit strategy on workplace wellness programs

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum. 2 2

Welcome

Speaker

Kara Speer, M.P.H. Population Health Consultant, Optum

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum.

Purpose Understand the approach that Human Resource professionals are taking to administer health and wellness solutions at their companies

Highlight differences between companies that offer:

Background

3

CDHP and/or high deductible (HD) plans only

CDHP and/or HD plans in addition to traditional plans

Traditional plans only


Wellness program penetration & administration

Strategic indicators

Incentives

Success metrics

Environmental health

Health exchanges

The following topic categories were assessed in our survey:

Survey topics

4


Methodology

Method • Web-based survey with respondents who

are members of an online panel

• Surveys were conducted from December 17 through December 28, 2012

• n = 489 answering plan type: • 98 CDHP/HD only • 267 CDHP/HD + traditional • 124 Traditional only

Analyst notations • Statistically significant differences are reported

at the 95% confidence level and all noted differences by subgroup are significant differences

• Percentages in charts and tables may not sum to 100% due to rounding

5

December 17, 2012 – December 28, 2012

95% N = 489

CONFIDENCE LEVEL


Respondent profile

Qualification criteria for respondents

• Company currently offers health and wellness programs to employees – Company offers at least two types of wellness programs

• Functions in Human Resource role at work – Respondent is involved in decision-making in regards to health benefits and instituting employee wellness programs

for their company

• Company has at least two employees

6


Respondent roles

Those who offer multiple plan types are most often part of a decision-making team.

Most in each group are in Human Resource (as directors or managers) or Executives.

46%

25% 34%

54%

75% 66%

0%

20%

40%

60%

80%

100%

CDHP/HD only(A)

CDHP/HD +Traditional

(B)

Traditional only(C)

B

A

Decision-maker

Decision-Making Status of Respondents for Health & Wellness Programs

Part of a team

7

Letter indicates a statistically significant difference between groups

Role CDHP/ HD only (A)

CDHP/HD + traditional (B)

Traditional only (C)

Executive/Owner 34%B 23% 24%

Human Resources 33% 44%A 45%

General Management 22% 19% 14%

Administration 8% 14% 17%A

Communications/PR 3% 1% --

Functional Role


Company profile

Those who offer CHDP/HD plans are more likely than others to be:

• Located in the Central region

• In the Finance or Insurance industries

B

A

8


Region of the United States

West Central Northeast Southeast

19% 15% 17%

26% 30% 36%

36% 32% 22%

19% 23% 26%

0%

20%

40%

60%

80%

100%

CDHP/HD only(A)

CDHP/HD +Traditional

(B)

Traditional only(C)

C C Role CDHP/ HD only (A)

CDHP/HD + traditional (B)


Manufacturing 24% 17% 14% Health Care and Social Assistance 14% 12% 16%

Finance and Insurance 11%C 10%C 3%

Professional, Scientific, and Technical Services

8% 11% 9%

Retail Trade 7% 7% 7% Transportation and Warehousing 7% 5% 5%

Educational Services 5% 3% 3% Management of Companies and Enterprises

4% 2% 2%

Industry


31%

13%

27%

20%

21%

24%

49%

67%

50%

0% 20% 40% 60% 80% 100%


CDHP/HD +Traditional (B)

CDHP/HD only (A)

Number of Employees in Organization

2 to 99 100 to 2,999 3,000 +

Company size profile

9

B

B


Large companies are most likely to offer CDHP/high deductible in combination with traditional plans.

Small Medium Large

AC


Key insights

10

Employers accrue significant value when their benefit strategy is driven by an approach that emphasizes health ownership.

Employers with a CDHP/HD plan report the following benefits:

• Higher perceived levels of employee well-being

• Greater employee participation in programs

• High levels of wellness program success

• Stronger emphasis on health account (HRA, HIA) integration with wellness incentives


Key insights

11

Employers with a CDHP/HD plan are MORE LIKELY than employers with traditional plans to:

• Offer access to more wellness programs

• Have a long-term or annual wellness plan

• Have a dedicated wellness staff member

• Increase wellness spending over the next three years

• Track wellness goals and ROI

• Offer incentives at higher payout amounts

An employer’s benefit strategy approach influences their interest level and commitment to wellness programming


Polling Question

12

How would you categorize your organization’s benefit strategy?

A. We offer a Consumer Driven Health Plan/ High Deductible Plan Only

B. We offer a Consumer Driven Health Plan/ High Deductible Plan + A Traditional Plan

C. We offer a Traditional Plan only (HMO, PPO, POS)

☐

☐

☐


Strategic Indicators



21%

15%

31%

78%

84%

68%

0%

1%

1%

0% 20% 40% 60% 80% 100%


CDHP/HD + Traditional (B)

CDHP/HD only (A)

Employees’ Overall Well-Being

Outstanding (6-7) Neutral (3-5) Terrible (1-2)

Employees’ overall well-being

Companies that offer only CDHP/high deductible plans are more likely to feel their employees’ overall well-being is outstanding.

14


B

A



32%

30%

42%

67%

69%

57%

1%

1%

1%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Employees’ Overall Satisfaction

Satisfied (6-7) Neutral (3-5) Not satisfied (1-2)

They’re also most likely to perceive their employees as being satisfied with their entire work experience.

15


B

Employees’ overall satisfaction

A


Strategic Indicators Numbers of programs offered

16

Number of Programs Offered

Wellness programs are more prevalent at companies offering CDHP/high deductible plans (with or without traditional plans).

• Regardless of plan type, the average number of programs offered increases with company size.

• All companies have been offering wellness programs for four to five years, on average.

2 to 4

40% 5 to 7

27%

8 or more 34%

Average: 6.6C programs

2 to 4 23%

5 to 7 31%

8 or more 46%

Average: 7.7AC programs

2 to 4 46%

5 to 7 27%

8 or more 27%

Average: 5.6 programs

CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)

B AC

B



Strategic Indicators Numbers of programs offered: CDHP/HD only

17

Number of Programs Offered: CDHP/HD Only by Company Size

The average number of wellness programs offered increases with company size.

• The same is also true for those offering traditional plans..

2 to 4 89%

5 to 7 4%

8 or more 8%

Average: 3.4 programs

2 to 4 30%

5 to 7 48%

8 or more 22%

Average: 6.7A programs

2 to 4 18%

5 to 7 29%

8 or more 53%

Average: 8.2A programs

Small (A) Medium (B) Large(C)

BC A

AB

Letter indicates a statistically significant difference between groups Note: Small base sizes (Small n=26, Medium n=23, Large n=49)

A


Strategic Indicators Planning

18

52%

9%

36%

33%

16%

45%

31%

11%

57%

0% 10% 20% 30% 40% 50% 60%

No plan at all

Both a long-term andan annual plan

Long-term orannual plan only


Plan for Employee Wellness Those who offer only CDHP/high deductible plans are most likely to have a long-term or annual plan.

More than half of traditional plan employers do not have any type of plan.


C

AB

BC

Two in five who offer CHDP/HD plans say wellness spending will increase in the next three years.


Strategic Indicators Wellness staffing

19

59%

39%

41%

58%

41%

58%

0% 20% 40% 60% 80%

No

Yes

Company Has an Individual Whose Sole Responsibility Is to Promote Wellness


The majority who offer CDHP/high deductible plans have staff dedicated to wellness (with one in three working full time).


C

C

AB


Strategic Indicators Importance to benefits mix and approach to wellness

Wellness solutions are most important to those offering CDHP/HD plans.

For all, the top reasons for offering wellness solutions are promoting a healthier, more productive workplace (especially for those offering both plan types) and reducing health care costs.

20

25%

34%

44%

53%

58%

44%

19%

8%

12%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Importance of Wellness Solutions to Benefits Mix

Very important Somewhat important Not important

C

A

B

Most likely to: • Set participation

goals • Effectively

track ROI • Offer wellness to

family and retirees


Strategic Indicators Polling Question

21

Will your company’s investment in wellness increase or decrease in the next 2-3 years?

A. Increase

B. Decrease

☐ ☐


Wellness Program Penetration & Administration


Wellness Program Penetration & Administration

77%

68%

57%

50% 49% 44% 44%

35% 31%

22%

77% 73% 73%

57% 58% 58% 61%

39% 35%

25%

76%

57% 57%

38% 42% 40%

35%

27%

19%

11%

0%

20%

40%

60%

80%

100%

Flu ShotsHealth and Wellness CommunicationsDiscount ProgramsHealth and Wellness WebsiteFitness ChallengesWellness CoachingHealth Risk AssessmentsDisease Management ProgramsHealth Biometric ScreeningsOnsite Clinics


Wellness offerings

Wellness programs are generally more prevalent at companies offering CDHP or high deductible plans (even if traditional plans are also offered).

23

AC

Current Wellness Programs Offered

C

Fitness Challenges

Flu Shots Health and Wellness

Communications

Discount Programs

Health and Wellness Website

Wellness Coaching

Health Risk Assessments

Onsite Clinics

Health Biometric

Screenings

Disease Management

Programs


C C AC AC

C C

C C


Wellness Program Penetration & Administration Methods overall

Across all plan types, most programs are being administered through onsite events or online. • Those offering CDHP/high deductible

plans are most likely to administer programs this way.

24

77%

66%

38%

32%

28%

25%

8%

83%

83%

47%

40%

40%

32%

18%

72%

70%

48%

38%

31%

34%

15%

0% 20% 40% 60% 80% 100%

Onsite events

Online

Mail

Off-site clinic or doctor’s office

Phone

Onsite clinic

Mobile**


Current Administration Method Offered

C

C

AC

A



Incentives


Incentives

Offer 83%

Don't offer 17%

Incentives overall

Those with CDHP/high deductible plans offer incentives most often and also invest more in incentives.

26

Offering Incentives Percent of companies offering some kind of incentive

Offer 71%

Don't offer 28%

Don't know 1%

Offer 57%

Don't offer 43%


Average incentive value: $168C

Average incentive value: $159C

Average incentive value: $132


B

AB

C AC


Incentives

Offer 70%

Don't offer 26%

Don't know 4%

Incentives overall: CDHP/HD only

Among those with only CDHP/high deductible plans, large companies offer incentives most often.

27

Offering Incentives: CDHP/HD Only by Company Size

Percent of companies offering some kind of incentive

Offer 39% Don't

offer 61% Offer

90%

Don't offer 10%

Small (A) Medium (B) Large (C)





BC A

A

Note: Small base sizes (Small n=26, Medium n=23, Large n=49)


Incentives

45%

28% 28%

22%

14% 17%

10%

4% 5%

39% 38%

32%

27%

32%

15% 14% 11% 11%

8%

16% 15%

22%

18%

8% 5%

14%

5%

0%

10%

20%

30%

40%

50%


Types of incentives offered

Company contributions to a health account, discounts and giveaways are primarily offered by those with non-traditional plans. Those who offer only traditional plans are most likely to offer gift cards.

28

Incentives Offered to Workforce

Gift Cards

Premium Reductions

Merchandise

Points-based Rewards System

Vacation/ Personal Days Off

Cash

Giveaways Company Contributions to HSA, HRA

or HIA

Discounts


C

C C

C

C

C

AC

C C

C

A

A

AC


Success Metrics


Success Metrics

14%

19%

31%

33%

19%

18%

41%

19%

15%

26%

36%

21%

0% 10% 20% 30% 40% 50%

Rates that trend with industryaverages

Over 50% accessing program

An increase year over year

Active use by at least some ofstaff


Determining success

Overall success of programs is high across all plan types.

Year-over-year increases are most important to determining successful participation among those who offer CDHP/high deductible plans + traditional.

30

B

C

Determining Successful Participation Rates

Active use by at least some of staff

An increase year over year

More than 50% accessing program

Rates that trend with industry averages



Success Metrics Participation percentages

Companies that offer only CDHP/high deductible plans have the greatest participation in wellness programs.

Top barriers to participation are lack of time or interest across all groups.

31

Average Percent of Eligible Workforce Participating in Company Wellness Programs

52%

43%

49%

0% 10% 20% 30% 40% 50% 60%

CDHP/HD only (A)




B


Success Metrics Participation percentages: CDHP/HD only

Participation in wellness programs is high for all companies that offer only CDHP/high deductible plans, regardless of size.

32

Average Percent of Eligible Workforce Participating in Company Wellness Programs:

CDHP/HD Only by Company Size

54%

52%

51%

0% 10% 20% 30% 40% 50% 60%

Small (A)

Medium (B)

Large (C)

Letter indicates a statistically significant difference between groups Note: Small base sizes (Small n=26, Medium n=23, Large n=49)


Success Metrics Factors

Most find each of these factors important in program success, across all plan types.

Companies offering CDHP/high deductible plans place more value than traditional-only companies on: ‒ Health risk reduction ‒ Claims/health care cost reduction

33

Factors in Determining Success of Wellness Programs:

□ Health Risk Reduction

□ Claims/Health Care Cost Reduction

□ Wellness Program Participant Rates

□ Increased Productivity

□ Employee Feedback/ Testimonials

□ Return on Investment


Environmental Health



Companies that offer CDHP/high deductible plans are more interested in learning about environmental strategies than those offering only traditional plans.

35


32%

46%

42%

42%

39%

46%

21%

9%

7%

5%

5%

5%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Interest in Learning More

Extremely/very Somewhat Not very Not at all

C

AB

Interest in learning more about healthy environment strategies



Among those who offer only CDHP/high deductible plans, medium and large employers are more interested in learning about environmental strategies than small.

36


49%

44%

27%

41%

52%

50%

6%

15%

4%

4%

8%

0% 20% 40% 60% 80% 100%

Large (C)

Medium (B)

Small (A)

Interest in Learning More: CDHP/HD Only by Size

Extremely/very Somewhat Not very Not at all

B

Note: Small base sizes (Small n=26, Medium n=23, Large n=49)

Interest in learning more about healthy environment strategies: CDHP/HD only



6%

12%

18%

44%

53%

49%

24%

21%

19%

15%

7%

8%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Looking for Vendors

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Leveraging environmental strategies

Companies that offer CDHP/high deductible plans are more interested in looking for vendors to help leverage environmental strategies.

37

C

C

B




38% 32% 29%

24% 33%

43% 35%

30% 36%

0%

10%

20%

30%

40%

50%


Interest in making changes

Two in five employers offering CDHP/high deductible + traditional plans have made changes to help employees make healthy decisions.

Top environmental changes across all plan types: vending machines, smoke-free campus

38

Has Made/Considered Physical Changes to Work Environment

Yes, made changes Yes, considered making changes but haven’t done so yet

No, haven’t made/ considered any changes


C B


Health Exchanges


8%

6%

27%

32%

40%

29%

32%

22%

36%

16%

19%

2%

3%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Likelihood to Offer Health Exchange Model

Very Somewhat Not very Not at all Already offer

Impact of health exchange model

40

A health exchange model is more appealing to those offering CDHP plans

C C

C

AB


C


52%

42%

35%

15%

35%

40%

12%

16%

10%

12%

2%

8%

0% 20% 40% 60% 80% 100%



CDHP/HD only (A)

Impact of Exchange (Among Likely to Offer)

Offer more wellness programs at no add'l cost Offer same at no add'l cost Offer at an add'l cost Stop offering

Impact of health exchange model

41


C

C

C

C

C

Switching to a health exchange model wouldn’t negatively impact wellness offerings. Many of those offering only traditional plans would even be likely to add more programs.


Final Takeaways

42

A benefit strategy that emphasizes health ownership can: Enable organizational support for a health management strategy • Dedicated wellness staff • Strategic planning • High value incentives • Wellness spending Maximize the benefits accrued from that strategy • Higher perceived levels of employee well-being • Greater participation in wellness programs - Higher levels of wellness program success - Stronger integration of health accounts

Thank you.

wellness in the workplace study

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