The Boeing Company

The Challenges of aGlobal Wellness Program

The Boeing Company

• World’s leader in aerospace • 150,000 employees in 48 U.S

states and more than 70 countries

• Market leader in commercial jetliners, military aircraft, satellites, missile defense, human space flight, launch systems and services

• Revenues of greater than $50 billion

Health Challenges

• Size• Geography• Aging Workforce• 60+ Collective Bargaining Units• 500+ Health Plan Options• Historically Generous Coverage• Employee Mobility• Cultural Issues• Data Privacy• Integration

Out of every 100 Boeing people…

• 90 have 2 or more risk factors• 85 eat too much fat and/or don’t consume at least 5 fruits & vegetables/day (67% RTC)• 75 fracture one or more home safety principles• 63 admit to having too much stress (43% RTC)• 62 are overweight or obese (73% RTC)• 61 don’t get enough exercise (57% RTC)• 50 have 5 or more risk factors• 48 are hypertensive• 26 have seasonal allergies• 14 have high cholesterol• 12 smoke (28% RTC)• 8 are clinically depressed• 8 have arthritis• 6 experience migraine headaches• 6 have chronic back pain• 4 have diabetes• 3 have documented heart disease

Boeing Health Care Spending in Perspective

At 1.8 billion, our annual Health Care spending is enough to purchase:

• 7 777s

• or, 33 737s

• or, 30 F/A-18 Super Hornets

• or, 56 CH-47 Chinooks

Wellness Issues

Boeing’s Top Actionable Health Conditions

Total Medical and Drug Costs by Top Actionable Conditions

$- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000

Arthritis

Low Back Pain

Hypertension

Diabetes

Coronary Artery Disease

Depression

Headache

Bone and Joint

Cerebrovascular Diseases

Asthma

Congestive Heart Failure

Union

Non-union

Source: Boeing Health & Productivity Analysis, 2003

Direct Health Care Cost is the Tip of the Iceberg

Boeing Conditions Affecting Productivity (Absenteeism & Presenteeism)

0 50,000 100,000 150,000 200,000 250,000

Heart Disease

Diabetes

Low Back Pain

Asthma

Hypertension

Arthritis

Migraine

Depression

Allergies

Co

nd

itio

n

Estimated Lost Work Days Monthly

Sources: Boeing 2004 HRA and Employers Health Coalition, Inc., Productivity Study, 2000

Boeing’s Health RisksDeterminants of health status:

-- Access to Care (10%) -- Genetics (20%)

-- Environment (20%) -- Behavior (50%)

Source: IFTF, Center for Disease Control and Prevention

Source: Boeing Health Risk Assessment (HRA) results, 2004

'04-'05 HRA Risk Factor Comparison

0 10 20 30 40 50 60 70 80 90 100

Tobacco

Cholesterol

Hypertension

Stress

Weight

Exercise

Nutrition

Ris

k F

act

or

% at Risk

2005

2004

Estimated Annual Excess Costs – 4 Lifestyle Risk Factors

Risk Factor Boeing Employees & Spouses

# @ risk1 Excess Annual Cost/person@

risk2

Total Annual Excess Cost

Exercise 234, 600 143,106 (.61) $400 $57m

Stress 234,600 147,798 (.63) $700 $104m

Weight 234,600 145,452 (.62) $500 $73m

Smoking 234,600 28,152 (.12) $1,623 $46m

Total 234,600 $280m

1. Sources: 2005 Boeing HRA data2. Sources: 1998 Boeing Wellness data; HERO data; smoking data: Centers for Disease Control

Wellness Strategy & Programs

Goal: Solid Offerings Along the Continuum of Care

– Health Promotion– Education– Fitness– Prevention– Screenings

– Health Promotion– Education– Fitness– Prevention– Screenings

WellNo Disease

Low Risk

WellNo Disease

Low Risk

– Targeted Risk

Reduction Programs/

Health Risk

Assessment

– Targeted Risk

Reduction Programs/

Health Risk

Assessment

At RiskObesity

High Cholesterol

At RiskObesity

High Cholesterol

– Self-care Tools

Including Nurse

Triage – Decision Support for

Major Procedures

– Self-care Tools

Including Nurse

Triage – Decision Support for

Major Procedures

Acute Illness/

Discretionary Care

Surgical Procedures

Emergency Visits

Acute Illness/

Discretionary Care

Surgical Procedures

Emergency Visits

– Disease

Management (Major

Event Prevention and

Ongoing Symptom

Management)

– Disease

Management (Major

Event Prevention and

Ongoing Symptom

Management)

Chronic Illness Diabetes

Coronary Heart Disease

Arthritis

Chronic Illness Diabetes

Coronary Heart Disease

Arthritis

– Case Management– Utilization

Management

– Case Management– Utilization

Management

CatastrophicHead Injury

Cancer

CatastrophicHead Injury

Cancer

20% people = 78% cost

Benefits Wellness/

Care Management Team

80% people = 22% cost

Wellness Programs Are Coordinated Through The Company Wellness Team

Wellness Team Representatives

FitnessWellnessMedicalSHEAWorkLifeEAPUnionBenefitsHR

Risk Factors

Risk Factors•Mental Health Issues•Inactivity•Poor Nutrition•Overweight•Smoking•Lack of knowledge•Less than optimalcondition management•Poor health consumerbehavior

Partners: Safety, Medical, Fitness, EAP, Family Care Resources, Benefits, Disability Management

Boeing Cost DriversArthritis

Low Back PainHypertension

DiabetesHeart Disease

DepressionHeadache

Boeing Productivity DrainersAllergies

DepressionMigraineArthritis

HypertensionAsthma

Low Back Pain

Problems

Wellness ToolsHealth LetterBoeingWellness.comHRA w/CoachingFree & ClearWeight ProgramFitness ProgramStress ProgramHealth EducationHealth FairsScreenings/Flu ShotsEAPFamily Care Res.Disease Mgmnt.Safety Programs

Solutions

Monthly Focus•Headache/Migraine•Heart•Weight Management•Cancer Prevention•Allergies/Asthma•Injury Prevention•Mental Health•Arthritis•Men’s Health•Women’s Health•Diabetes/Smoking•Stress Management

Wellness Strategy Model

Programs & Services need to focus on the risk factors and problems

BoeingWellness: Enterprise/Local Alignment

Telephone-Based

coaching

HRA

Fitness

SiteHealth

Education

BW.comportal

Newsletter

Flu ShotsOther site-based

programs

People Working Together

-Right Focus-One Program

Sited-basedEnterprise

U.S. 2010 Health Risk Factor Goals*

Risk Factor

Boeing 2004

Boeing 2005

U.S. 2000

U.S. 2010 Goal

Physical Inactivity

67% 61% 62% 40%

Overweight 40% 37% 35% 25%

Obesity 26% 25% 23% 15%

Smoking 9% 12% 24% 12%

* Centers for Disease Control - Healthy People 2010 Public Health Initiative

…and how would you like to get help?

Risk Factor

HRA

Coaching

On-Line Programs

Site programs

Fitness, Classes

General Education

Newsletter, Speakers

Safety Systems

Clinical Referral EAP Referral

Disease Management

BoeingWellness.com

Wellness Outcomes

We Evaluate Programs Three Ways

Participation Statistics

Survey Responses Data Analysis

Program Decisions

2005 Program Participation Total

ProgramInternational

Monthly Health Letter – Employees 145,000 3600 (2.5%)

Quarterly Health Letter - Retirees 170,000 330 (<1%)

Quit Tobacco (new) 2,400 24 (1%)

Flu Shots 54,000 350(<1%)

Annual Fitness Center Visits 1,000,000 NA

Classes 1,500 NA

Screening Events 50 NA

Health Fairs 50 NA

BW.com Registrations (new) 55,000 920 (2%)

Health Risk Assessments Completed 78,000 880 (1%)

Mayo Coaching Participation 4300 – 1 call 7300 – 5 call

50 – 1 call (1%) 60 – 5 call

(<1%)

High Confidence In Ability To Make Lifestyle Changes

Very confident

Confident

Not very confident

Not at all confident

Q. 7 - How confident are you in your ability to make positive lifestyle changes, such as losing weight, stopping smoking or better managing your stress since visiting this Web site?

81% say they are more confident

Coaching Outcomes - 2005%

increasing confidence

Direct outcome Indirect outcome

% increasing perception of health

Weight n=4,526

52% in ability to manage their

weight

54% lost weight

42% lost 5+ lbs.

12% maintained weight

53% inc. success in using HWM strategies

28% improved perception of overall health

Physical

Activity n=1,679

37% in ability to increase their

level of physical activity

52% increased their

exercise minutes

45% lost weight

16% maintained their weight

23% improved perception of overall health

Nutrition n=511

50% in ability to make healthy

eating choices

60% are making healthier eating choices

43% lost weight

15% maintained their weight

30% improved perception of overall health

Stress n=657

60% in ability to manage stress

70% have fewer stress symptoms

31% use more stress management techniques

33% improved perception of overall health

Tobacco n=2,403

n/a 25-33% quit rate Many more have reduced smoking frequency/are closer to quitting

n/a

Data Management Model

Data Management

System

•Medical Claims•Disability Claims•Injury & Illness •Workers Comp•HRA•Clinic Visits

•Targeting•Planning•Evaluation•Financial Mgmnt•Vendor Mgmnt

On the horizon…

2006 Wellness Goals

Growth of existing programs

Integration& CultureBuilding

Targeting&

Evaluation

Governance

New programs

ReachChoiceQualityImpact

•BW.com•HRA•Coaching•Flu•Fitness•Education•International

•Stress Management•Broadcast Education•Weight Watchers Pilot•Physical Activity Initiative

•Screenings•Speakers•Health Fairs•Clinical Standards•Fitness Center OperationsDecision Support System

•Leadership•Awareness•Teaming•Programs•Consistency

Health & Productivity Culture

WorkLife Programs

EmployeeAssistanceProgram

SafetyPrograms

24x7Medical

Leadership

Personal Responsibility

Outcome

Health PlanCoverage,

Quality,& DM

WellnessPrograms

Early InterventionPrograms

Disability ManagementH

PM

Sys

tem

Globalization Challenges

Identification

Eligibility

Coordination & Communication

Product Applicability

Delivery Method

Cost-Benefit