Turning Insight into Action A RightOpt® Webinar

Controlling Costs and Advancing Well-being

Strategies Through a Private Exchange

Our Presenters

Dan Graovac, MHSA Principal,

Health Practice

Bruce Sherman, MD, FCCP, FACOEM

Medical Director,

Population Health Management

3

Presentation Outline

• Workforce health as a business investment in human capital

• Relationship of workforce well-being to healthcare cost containment

• Importance and value of integrated services and data to foster

workforce health and well-being

• The private exchange as a means to achieve cost containment and

health management objectives

4

What’s the Value of a Healthy Workforce?

Triple Aim Goals

• Improved quality

• Better health outcomes

• Lower healthcare costs

Lies in alignment of health management strategy with company

business strategy

• Increased worker productivity

• Enhanced worker performance

• Increased company profitability

Targeted offerings generate optimal value

5

Traditional View of Employee Value

Value Work Output Cost

Responsible Department Operations Human Resources

Components • Business productivity

• Supply chain management

Wages, health benefits, WC

costs, recruitment, vacation…

Representative Metric

• Labor hours per unit

• Waste as % of total output

• Revenue per employee

• PEPY healthcare costs

• Employee engagement

• Turnover rate

Value Work

Output Cost

6

Evolution of Health as a Business Imperative

Organizational Tactics Measurement Approach

Informal offerings Not monitored

Program-based offerings

(health impacts medical costs)

Program-specific metrics

(ROI)

Integrated health and productivity

programs

(health impacts productivity)

Health & productivity metrics

integration

(total cost/value)

Organizational policies and

practices influencing health

(health impacts revenue)

Comprehensive integration and

reporting

(business/shareholder value)

Health as Employee

Responsibility

Health as Business

Imperative

(Culture of Health)

7

Higher Well-being is Associated with Improved Workplace Performance

Well-being is More Than

Physical Health

Well-being and Job Performance

(Manager Ratings)

Source: Healthways, 2011.

50.00

55.00

60.00

65.00

70.00

75.00

80.00

Unacceptable

Fair

Successful

Outstanding

Exceptional

Supervisor Performance Ratings

Ind

ivid

ual W

ell

-bein

g S

co

re

8

Workforce Well-being has Business Implications Beyond Physical Health

Working

Population

Thriving in

Physical

Only

Thriving

in All 5

Elements

Compared to Adults

Thriving in just

Physical, Those

Thriving in all 5

Elements:

Average

Unhealthy

Days per

Month

0.81 0.48 Have 41% less

absenteeism

Involved in

Accident

Resulting in

WC Claim

1.4% 0.5%

Are 65% less

likely to be

involved in a

workplace

accident

If Job Market

Improves,

Intent to

Look for New

Job

39.2% 7.3%

Are 81% less

likely to move

when the job

market improves

Employees thriving in multiple

well-being elements have lower

health-related costs one year later

Source: Gallup, 2014.

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

None One Two Three Four Five

Annual healthcare costs and well-being status

$4,966

$4,264 $3,956

$3,578 $3,421 $3,177

Number of Elements Thriving at Baseline

9

An Opportunity Exists for Organizations to Actively Promote Well-being

Organizational well-being lies in influencing your employees to do what is in their best

interest.

12% of employees

strongly agree that

they have substantially

higher overall well-

being because of their

employer.

A vast majority of

employees see

their job as a

detriment to their

overall well-being.

10

Employee Engagement Affects Key Business Outcomes

Work units in the top quartile in employee engagement outperform bottom-

quartile units in a broad range of measures.

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Turnover

-37%

-25%

-65%

-28%

-48%

-41% -41%

10%

21% 22%

Absenteeism

High-

Turnover

Orgs.

Low-

Turnover

Orgs. Shrinkage

Safety

Incidents

Patient

Safety

Incidents

Quality

(Defects)

Customer Productivity Profitability

Source: http://businessjournal.gallup.com/content/163130/employee-engagement-drives-growth.aspx

Business metrics of companies with high vs. low employee engagement

11

Workforce Health as a Business Imperative

Better Market Premium Reduced Turnover Rates

Companies with health as a business imperative achieve significantly

better financial outcomes and lower employee turnover.

Companies that do NOT effectively link health

to business imperatives

Companies that effectively treat health as a

business imperative

11.70%

-15.85%

14.80%

21%

Source: Towers Watson 2009/2010 Staying@Work Report.

12

Health Drives Performance

Source: Fabius, Thayer, Konicki, et al. The link between workforce health and safety and the health of the bottom line. JOEM. Sept., 2013.

13

Stock Price Trend of Companies with a Culture of Health

Source: Fabius, Thayer, Konicki, et al. The link between workforce health and safety and the health of the bottom line. JOEM. 2013.

0

5,000

10,000

15,000

20,000

25,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Portfolio Worth (6/30) S&P 500

Portfolio excluding outliers versus S&P 500.

$ 19,404.12

$ 9,923.14

14

A Conceptual Framework for Workforce Health and Well-being

Source: Sherman B, Lynch W. Connecting the dots: Examining the link between workforce health and business performance. Am J Manag Care, 2014; 20(2):115-120.

Individual

Well-being

Organizational

Performance

Individual

Performance

Inputs Consequences

Well-being Status

• Physical

• Emotional

• Financial

• Social

• Personality Attributes

Workplace Practices

• Performance Measures

• Performance Incentives

• Leave Management

• Benefits Design

• Organizational Structure

Work Factors

• Work Relationships

• Role in Organization

• Career Development

• Work-life Interactions

Workplace

Culture

• Well-being Status

• Health Care Costs

• Absence

• Presenteeism

• Engagement

• Skill Level

• Work Output

• Work Quality and Safety

• Customer Satisfaction

• Workforce Engagement

• Workforce Output & Quality

• Customer Retention

• Innovation

• Revenue

• Profitability

15

Factors that Stress People Most Intensely

Source: The Consumer Health Mindset Survey. Aon/NBGH/the futures co., 2013.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%F

ina

ncia

l S

itua

tio

n

Wo

rk C

ha

ng

es

Wo

rk S

che

dule

Wo

rk R

ela

tion

sh

ips

Influ

ence

/Co

ntr

ol O

ver

How

I D

o M

y W

ork

Pers

on

al R

ela

tio

nsh

ips

Health

Co

nd

itio

n o

f F

am

ilyM

em

ber(

s)

Pers

on

al/F

am

ilyC

om

mitm

en

ts

Pers

on

al H

ea

lth

Con

ditio

n

Fam

ily C

ha

ng

es

Fin

an

cia

l S

itu

atio

n

Pe

rson

al R

ela

tio

nsh

ips

Pe

rson

al H

ea

lth

Con

ditio

n

46%

37% 34%

32% 32% 29%

27% 27% 25% 22%

What does this mean for prioritization of physical health concerns?

16

Integrated Services Across the Health Continuum Yield the Greatest Impact

Chronic Conditions

Acute Illness

Health Risks

Well-being and Consumerism

Centers of Excellence

Condition Management Programs

High Performance Networks

High Performance Networks

Navigation Support

Biometrics/Health Assessment

Lifestyle Coaching

Smoking Cessation

Well-being Programs & Resources

Consumerism Tools & Resources

Catastrophic

Care

17

Key Points:

• Workforce health can be viewed as a business investment in human

capital

• Effective attention to workforce well-being can have substantial

business impact

• Employee engagement is essential for meaningful healthcare cost

containment

• Well-being and consumerism are foundational elements for effective

use of healthcare services

18

Castlight Health:

Locate a Doctor/Hospital based on Cost and Quality. Empowers members to make

more informed decisions using cost and quality information to select a doctor.

Our mission is to help members become better stewards of their health. Not just at time

of enrollment, but 365 days a year.

Use Benefits Effectively

19

Improve Health through Integration

20

Data Integration to Drive Clinical and Business Outcomes Capital Management

Truven

Data

Warehouse

and

Analytics

Eligibility

Medical

Pharmacy

Care Management

Health Risk Assessment

Biometric Testing

User Experience

Program Participation

Financial Management

Vendor Performance &

Quality Management

Benefit Planning &

Design

Regulatory Compliance

Program Evaluation

Health, Productivity, &

Performance Mgmt.

21

22

Health/Well-being Strategy in Action

• Health risks

• Well-being

concerns

• Chronic

conditions

• Poor quality care

• Inappropriate

utilization

Personalized, Relevant, Actionable Engagement

Identify Concerns Develop

Priorities

Plan and

Implement Monitor Impact

Based on:

• potential cost

savings

• implementation

effort/cost

• timeline to

savings

• Integrate with

existing benefits

strategy

• Determine

measures for

evaluating

effectiveness

• Ensure vendor

and data flow

integration

• Identify and track

leading and

trailing measures

• Intervene to

optimize success

Our Results

23

Sustained Engagement

Initial launch, 2014 OE:

• 100% at 4.1 return visits

Through Q1 2015:

• 100% at 12.5 return visits

Activated Consumers

• My Action List

• Know My Numbers

• My Benefit Resources

• My Spending Accounts

• Health News and

Videos

Significant Savings

Average year-over-year paid

claims decreased 3.74% on a

per employee basis, with an

aggregate improvement of

nearly 1% in benefit design.

High Member Satisfaction

“This is amazing! It’s the first

time since I was hired that I

easily navigated the site and

found what I was looking for.

Love it!”

Improved Provider Access

Network provider gain is

typically more than 3 times

higher than network provider

loss

24

Summary:

• Health benefits offerings can be viewed as a business investment in

workforce human capital

• A private exchange can support organizational efforts to achieve

business goals

• Integrated services and data sharing/analytics are critical to improving

effectiveness with measurable outcomes

Contact Us

Dan Graovac, MHSA Principal,

Health Practice

Dan.Graovac@xerox.com

Bruce Sherman, MD, FCCP, FACOEM

Medical Director,

Population Health Management

Bruce.Sherman@xerox.com

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