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Approximately 354,000 customers Serves 7 southern counties of NJ

Goal:

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Protect and improve the health and safety

of each SJG employee

Accomplished through wellness & safety

initiatives

Journey to health began in 2008 Launched our first Health & Wellness

program Data driven program with quantifiable

benefits for employees and bottom line

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Slow rising cost of healthcare expenses

Identify and reduce health risk factors

Reduce sick time

Drive initiatives with employee data and input

Leverage vendor wellness services

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Offered Health Risk Assessments

Partnered with AtlantiCareand Horizon

Voluntary employee participation

Over 50% of workforce completed HRAs

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Results indicated top three risk factors related to:

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Weight Management

Blood Pressure Cholesterol

29% of participants referred to a disease management program

78% referred to physician for follow-up

Created awareness of risks and importance of pro-active treatment

Less costly to manage risk factors rather than illnesses

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Horizon impressed by high level of employee participation

Through participation, employees demonstrated trust of our positive intentions

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New Policy No tobacco use/ smoking on company property

• 2008 assessment - 16% smoked = 104 employees• 2009 assessment - 12% smoked = 78 employees• 2009 HRAs showed 4% reduction in smokers• 26 Employees Quit Smoking!

Weight Watchers Program – after hours Moderate success - 25 employees participated

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Rolled out Wellness initiatives in 2010

Aimed at increasing employee participation in wellness activities

Data showed mixed results

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SJI Healthy People 2010 Benchmark

Regular Physical Activity 38% 30%

Maintaining Healthy Weight 18.2% 60.0%

Living with Obesity 38.9% 15.0%

Contracted with CIGNA to provide Employee Assistance Services and Work Life Services

• Work life services included a healthy rewards discount program

Child care, senior care, financial and legal consultation services made available

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Special Work Life Services - a welcomed advantage over the more traditional EAP service

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Offered onsite seminars on variety of health topics • Former trainer for the Philadelphia Flyers

hockey team

• Owner of a local gym

• Cardiologist spoke about Heart Health

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Encouraged annual physicals and follow-up treatments Educated employees on keeping

medical costs down Results - majority of employees stayed

“In Network” Horizon impressed with our results

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Old habits die hard

Senior Leaders supported continued campaign

Implemented creative initiatives which generated high levels of enthusiasm

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Offered healthy menu with a 50% discount

Cafeteria vendor demonstrated uptick in healthy meals

Positive buzz heard everywhere

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Benefits broker helped us link to Biggest Loserwebsite

Offered the competition to our employees

90 employees actively participated over 6 months

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Launched a Special Fitness Campaign in 2011

Set up and paid for employees to join a 60 day program

Designed by local healthcare providers in conjunction with gyms and dieticians

Over 140 employees participated

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Special ergonomic assessments in 2009 and 2010 for call center and clerical employees

Focus to reduce and eliminate ergonomic relatedinjuries

Resulted in several improvements to workstations

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Completed about 100 assessments of our Office Workers

Suggestions implemented at little or no cost

Suggestions include minor adjustments to workstations

Employees appreciated the help

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Expanding to field workers in 2012

Performing Job Assessments to identify tasks with greatest risk level

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Goal: to reduce the likelihood of an injury

Traditionally offered onsite flu shots 2011 - special program designed by CVS

Caremark and Horizon Offered vouchers to employees and their

families for free flu shots

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Biggest accomplishment - reduced the cost of health care increases

Reduced sick time – 10% reduction between 2010 & 2011

Reduced risk factors – Example: fewer smokers

2012 - Platinum Certification from AHA

2011 - Gold Certification from American Heart Association

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Documented successful outcomes:

Developed new loss ratio report in 2011

Provided better understanding of trends

Saw how medical dollars spent compared to actuarial estimates

Saw favorable trends during 2011

Confirmed trends at 2012 medical renewal

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Prior to 2012 – 3-yr. average increase for healthcare premiums about 13.4 percent

Despite Healthcare Reform obtained zero percent renewal from medical carrier in 2012

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SJI Premium Increase for 2012 = ZERO

Other successes:

AHA Heart Walk – Employee participation great in 2011 & 2012

First place in Heart Walk T-Shirt Contest – 2011 & 2012

Gold Recognition obtained in 2011 from AHA

Obtained AHA’s Platinum Certification in 2012 wellness efforts

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Experienced great success by partnering with local health and wellness providers Offered unique services resulting in

achievement of program goals Employees adopted healthier habits Ergonomic improvements resulted in less

frustration for employees

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Over time, this program has resulted in a win-win situation for employees and our Company. Employees are healthier and our health care rates remained flat in 2012!

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This 4x400M Runner Finished the Olympic Relay after breaking his leg.

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Manteo Mitchell2012

Olympic Silver Medalist