W W W . W A T S O N W Y A T T . C O M

Employer response and possible implications for workplace policy National Health Policy Conference

Obesity: Strategies to combat the epidemic

January 29, 2004

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Financial picture of consumer health behavior

50%

30%4%66%

15%35%

50%

ChronicDisease

AcuteConditions

HighRisk

ModerateRisk

LowRisk

CatastrophicIllness

ChronicDisease

AcuteConditions

HighRisk

ModerateRisk

LowRisk

CatastrophicIllness

4%66%

15%35%

Missed Opportunity

Less than $1,000Maintain Health

$1,000 to $9,999Improve Health

Greater than $10,000Manage Health

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Health influences more than medical costs in the workplace

Medical costs account for less than half of the total health and productivity-related costs.

Other health-related expenses include:

– Absenteeism from work

– Disability program use

– Workers’ compensation program costs

– Turnover

– Family medical leave

– Presenteeism (on-the-job productivity losses)

4

Employers are beginning to link health and work performance

Health Variable Work Variable Effect on Performance

Moderate physical activity

Quality of work performed

Improvement

Moderate physical activity

Overall job performance

Improvement

Cardiorespiratory fitness

Overall job performance

Improvement

Cardiorespiratory fitness

Extra effort exerted Improvement

BMI (obesity > 30 and < 40 kg/m2)

Getting along with coworkers

Decrement

BMI (obesity > 40 kg/m2) Work loss days Decrement

Source: N. Pronk,et al, JOEM, 2004

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The sense of urgency is real!

Health care costs are on target to double in five years or less.

Employers are giving serious consideration to redirecting funding toward health and productivity improvement programs, which:

– Reduce health care use

– Moderate cost increases

– Reduce illness absenteeism

– Improve work performance

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Obesity at the Workplace: Potential Policies and Implications

Three categories of policies to provoke discussion today

– Easy, That’s a “No Brainer”

– Difficult but Achievable

– Are You Crazy!

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Easy, That’s a “No Brainer”

Pros

Easy to implement with vendors

Choice is still available

Makes visible change in work environment

Cons

May have to subsidize cost difference

All onsite vending machines and food service providers have lower cost healthier alternatives

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Easy, That’s a “No Brainer”

Pros

Integrates into an existing program and training structure

Shows how obesity impacts both worker and co-worker safety

Cons

May eliminate an established safety training topic

Obesity prevention education is mandated as part of annual safety training requirements

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Difficult, but Achievable

Pros

Treats obesity like any other disease

Focuses on both prevention and treatment

Cons

Health care cost trends are on the rise many employers may be reluctant to increase coverage

Investment dollars for prevention

Employer health care benefit plans cover both prevention and treatment of overweight and obesity

10

Difficult, but Achievable

Pros

Works physical activity into the work environment

Increases physical activity levels of sedentary employees

Visible activity at the workplace

Cons

Employees may view break time as “their” time and they can do what they want

Enforcement and consequences for not participating

Mandate two 10-minute physical activity breaks during the work day

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Are You CRAZY!

Institute medical plan premium differentials (like smoker, non-smoker) using healthy weight versus overweight/obesity

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Are You CRAZY!

Being at a healthy weight and meeting physical activity requirements becomes part of the equation in determining gain sharing, bonuses and variable compensation but not base salary.

Health is part of overall performance and is measured.

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Employers who focus on solutions to improve health and productivity understand. . .

Employees don’t get and stay healthy by chance.

Keeping workers healthy requires new approaches.

Maintaining a healthy workforce means investing hard dollars.

Not everything that counts is countable.

The bottom line is the bottom line and every business investment MUST have a return.

Source: WELCOA, 2002

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