The Business Case for Worksite Health Promotion Tim O Neil, Manager, Employee Health & Financial Wellness Meredith Corporation ISCEBS Des Moines

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1 The Business Case for Worksite Health Promotion Tim O Neil, Manager, Employee Health & Financial Wellness Meredith Corporation ISCEBS Des Moines Chapter Employee Benefits Update July 26, 2012 Des Moines Golf & Country Club

2 Meredith Corporation Overview 3,200 benefits-eligible employees Operates in 24 different states Self-funded medical plan Spends approximately $25 million annually on health costs 2

3 About Meredith National Media Local Media Marketing Services WORKING WSM V -TV WSM V-DT NASHVILL E YOU 100 million audience 23 million web visitors Growing licensing business 12 TV stations reaching 10% of U.S. households Strong affiliate mix Top 25 markets of Atlanta, Phoenix, Portland Leading business-tobusiness marketer Experts in digital, social, mobile and database Major clients include Kraft, Nestlè, Chrysler, Lowe s 3

4 Setting the Vision Goal: improve health of employees Win-Win: - Employees feel better and have a better qualify of life - Company benefits from happier, healthier, more productive employees with lower healthcare costs High priority for leadership Establishing a wellness legacy 4

5 Pilot Program Wellness Screening and Health Risk Appraisal Questionnaire (Fall 2006) $300 incentive 86% Participation Greatest Risks blood pressure, body composition, BMI Recommendations Form Wellness Committee Launch Health Incentive Campaigns based on areas of aggregate risk Align Cafeteria and vending options with wellness strategy 5

6 Taking the Initiative Nationwide Fall 2007: Hired a wellness manager; wellness screening at all Meredith locations January 2008: Formed employee wellness committees and launched Live Healthy Meredith, Tobacco Free Workplace March 2008: Balanced Choices Healthy Vending Initiative May 2008: Blood Pressure Awareness Fall 2008: Ergonomics Pilot 6 6

7 Cost Shifting & Plan Design Changes = Unsustainable Long-Term Solution Year Average Monthly Cost per Covered Employee % Change over Prior Year 2006 $ % 2007 $508 (9.5%) 2008 $ % In 2007 Meredith made the following medical plan design changes: Switched medical carriers Added a high-deductible plan option Quit covering certain elective procedures 7

8 Taking the Initiative Nationwide January 2009: Restructured health club benefits program Fall 2009: Began formal Financial Wellness initiative, Meredith Wellness featured in Fortune Magazine January 2010: Launched enhanced Wellness Points and Wellness Bucks employee benefit programs 8 March 2010: Meredith employees lose 5,000 pounds in Live Healthy program; Meredith launches MeredithWellness.com website

9 Restructured Health Club Subsidy Pre-2009: Subsidized half of the local YMCA rate 85% of participants attended less than once per week 25% attended less than once per month ($ average visit cost!) = $300,000 spend per year 9 January 2009: Increased reimbursement amount 25% across all locations 100 annual visits = 100% of the new reimbursement amount 50 visits = 50% of the reimbursement amount, etc. Outcomes 10% increase in attendance/number of visits Reduced program cost to $88,000 per year Savings funded additional programming for employees Personal Training/Group Exercise = $100 per year Nutrition Counseling = $100 per year Sports Leagues/Events = $100 per year Bicycle Commuting = $240 per year Tobacco Cessation = $725 lifetime benefit

10 Taking the Initiative Nationwide 10 January 2009: Restructured health club benefits program Fall 2009: Began formal Financial Wellness initiative, Meredith Wellness featured in Fortune Magazine January 2010: Launched enhanced Wellness Points and Wellness Bucks employee benefit programs March 2010: Meredith employees lose 5,000 pounds in Live Healthy program; Meredith launches MeredithWellness.com website

11 Wellness Bucks Program Employees participate in wellness campaigns to earn Well-Bucks Employees can use Well-Bucks to be reimbursed for purchases including: Athletic Shoes Fitness Apparel Therapeutic Massage Exercise/Fitness Equipment Pre-Retirement Financial Counseling Toward any of the current wellness reimbursement categories 11

12 Wellness Points Program Increased $300 premiums discount program to $500-1,000 points by October 1 = $500 discount - <1,000 points = no discount o Live Healthy Meredith (January March) 200 points o Tobacco Cessation (Ongoing) 350 points o Financial Wellness Check up (April) 200 points o Nutrition Education Initiative (May) 100 points o Medical Self-Care/Consumerism Initiative (June) 100 points o Wellness Screening and HRA (August September) 300 points o Total Points Possible: 1,250 points 92% of covered employees earned 1,000+ points in 2011 $800 incentive for non-insured employees 12

13 Enhancing the Wellness Points Program Increased $500 incentive to $650-1,000 points by October 2012 = $650 spread over 26 paychecks in $800 spread over 26 paychecks for non-insured employees - <1,000 points = no incentive - Added Preventative Exams and Wellness Coaching to Points Program o Wellness Screening/HRA and Preventative Exams 350 points o Disease Management, Lifestyle Coaching and Tobacco Cessation (if applicable) 350 points o Campaigns and Initiatives 550 points Spouse Wellness Screening, Wellness Points in 2013 Screening Participant vs non-participant Costs Spouse Claims Trend vs Employee Trend 13

14 Wellness Screening Participants vs Non-Participants Annual Medical Claims Per Person $3,766 $2,242 Screening Participants Non-Participants Difference = $1,524 per year 14

15 What About Nonemployee Plan Participants? Annual Medical Claims Per Person $2,800 $4, % Increase since

16 Metabolic Syndrome and Medical Costs Metabolic Syndrome Risk Factors: HDL Cholesterol, Blood Pressure, Triglycerides, Glucose, Waist Circumference 75% of wellness participants have less than three risks o $1,713 average incurred plan charges in % of wellness participants have more than three risks o $2,710 average incurred plan charges in 2011 Non-participants o $3,766 average incurred plan charges

17 Tobacco Cessation Program Statistics Annual Medical Claims Per Person $3,900 $2,575 $1,884 $1,300 User Enrolled Graduated Non-User 55 participants went from User to Non-User Status in the last 2 years. 17

18 18 Companywide Tobacco Use : 11.4% : 10.7% : 9.0% : 8.3% : 7.5% : 3.4% Cessation Courses - 48 employees participated in tobacco cessation courses in participants completed the 8-week program (90%) - 33 successfully quit tobacco (80%) o $2,600 direct medical cost savings per person per year o $86,000 annual medical savings, $12,000 annual cost of cessation program o ROI of $7.35:$1 - Another 22 participants quit in 2011 Tobacco Cessation

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20 20 Meredith Wellness.com

21 Wellness Points Program Prevention & Awareness 21

22 Wellness Points Program Coaching 22

23 Wellness Points Program Campaigns & Initiatives 23

24 24 Wellness Reimbursements

25 25 Wellness Reimbursements

26 26 Wellness Bucks

27 27 Wellness Bucks

28 28 Specialized Well-Bucks Campaigns

29 29 Live Healthy Meredith

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31 31 Live Healthy Meredith

32 32 Live Healthy Meredith

33 Live Healthy Meredith Health Screening Data Total Number of Participants ,618 2,152 2,826 8,796 Number of Teams ,540 Total Activity Minutes (in millions) Total Weight Loss (in pounds) ,715 3,993 3,236 4,923 6,021 5,819 26,707 33

34 Financial Wellness April 2010: Meredith launches Financial Wellness HRA employees complete the questionnaire in the first four days; 2,250+ questionnaires completed to date - 11 Meredith locations achieve Platinum Level Fit Friendly Worksite Status with the American Heart Association May 2010: Onsite Financial Wellness Workshops sell out in 36 hours; 600 employees participated 600 employees participate in Wellness BINGO compared to 80 the year before 34

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38 38 Meredith Wellness on the go

39 Financial Wellness Outcomes Financial Wellness Checkup Summary Financial Wellness Score (1=low financial well-being, 10=high financial well-belng) High Financial Distress 22% 11% High Cash Flow Stress 41% 29% Low Savings Rate 37% 25% Understanding of Employee Benefits (Moderate or high) 73% 82% 39

40 Aggregate Wellness Scores (National Media Group) Health Screening Data First Year (2007) Current Year (2011) 4-yr. Change Average Wellness Score Healthy (80-100) 66% 76% +10 pct pts Moderate Health Risk (70-79) 25% 21% -4 pct pts High Health Risk (<70) 9% 3% -6 pct pts 40

41 Aggregate Wellness Scores (Local Media Group) Health Screening Data First Year (2007) Current Year (2011) 4-yr. Change Average Wellness Score Healthy (80-100) 54% 59% +5 pct pts Moderate Health Risk (70-79) 27% 31% +4 pct pts High Health Risk (<70) 19% 10% -9 pct pts 41

42 Flattening the Slope of Healthcare Cost Increases Year Average Monthly Cost per Covered Employee % Change over Prior Year 2006 $ % 2007 $508 (9.5%) 2008 $ % 2009 $ % 2010 $ % 2011 $ % 42

43 Medical Plan Analysis Meredith s Cost Per Employee Per Month $1,025 $1,000 $975 $950 $925 $900 $875 $850 $825 $800 $775 $750 $725 $700 $675 $650 $625 $600 $575 $550 $525 $500 Prior Trajectory (10% increase) Projected Worst (7% trend) Projected Expected (6% trend) Projected Best (5% trend) Actual Cost Per Employee (0.65% trend) $562 $ $990 $772 $737 $703 $581 $3 million has been spent on the wellness program since

44 Annual Employee Contributions Since High Deductible Plan: 0% - Healthy 500 Plan: 2% increase - Healthy 250 Plan: 4% increase Non-Wellness Participants: 20% 44

45 Annual Employee Contributions Annual Savings for Employee Wellness Participants - Employee Coverage: $1, Employee + Spouse Coverage: $2, Employee + Child(ren) Coverage: $2, Family Coverage: $3,

46 How did we pay for it? 2007 = $14 per employee per month ($549,000) per year - Online wellness portal and HRA questionnaire - Wellness screening - Integration with Medical data and aggregate reporting - Health coaching for at risk population 2012 = $7.70 per employee per month - Wellness Platform: $145,000 ($4 PEPM x 3,000 employees) - Wellness Screening: $85,000 ($50 x $1,700 participants) - Wellness Coaching: $60,000 ($120 x 500 participants) - Tobacco Cessation: $12,000 Total $302,000 46

47 National Recognition and Awards WELCOA Platinum-Level Well Workplace (2011) United HealthCare Well Deserved Award (2008, 2010, 2011) AHA Platinum-Level Fit Friendly Company (2009, 2010, 2011, 2012) WELCOA Gold-Level Well Workplace (2008) Partnership to Fight Chronic Disease Promising Practices in Worksite Wellness Award (2009) League of American Bicyclists Silver-Level Bike Friendly Business Award (2009, 2011) 47 New York Post, Fortune, Forbes Magazine, HR Magazine and several Special Interest Publications

48 Organizational Alignment Policy change - Tobacco-free workplace January 1, Enhanced health club subsidy January 1, Bicycle Commuter subsidy July 1, Wellness Points & Well Bucks January 1, Spouse Participation in Wellness Screening Fall Value-Based Benefit Design Future Initiative Linking on-site medical center to data - Eliminating duplication - Integrating data 48

49 What s Next? June 2011: Began content licensing discussions with Meredith s Corporate Development team 49

50 Reality Check What have you accomplished with the resources you ve been given? What are you planning to do with current and potential future resources? How has your employee wellness program improved the bottom line? Could your CEO speak to these if asked? 50

51 Summary You CAN afford to invest in technology (You can not afford NOT to invest in it) Partner with vendors willing to work within your strategy Demand the best product at the best price (or find someone else) Outcomes, Outcomes, Outcomes! Engage your executive team (buy-in and support) Celebrate Success and Evolve! 51

52 For Additional Information Meredith Financial Wellness Case Study 52

53 For Additional Information Meredith Wellness Case Study 53

54 Contact Information Tim O Neil, MBA Manager, Employee Health and Financial Wellness Office: Cell: Tim.O Neil@meredith.com Wellness@Meredith.com 54