Creating a Culture of HealthAnne Marie Ludovici-Connolly, M.S.

Health Management: a Serious Economic Strategy

• “Health management is a health strategy, but equally important, health management is a business and economic strategy.”

• “When risk status changes or when participation in health promotion activity changes, costs follow in the same direction”

Dee Edington, PhD., Zero Trends, 2009 2

$Employer health care costs are projected to rise 50% in the next five years (with a “do nothing” approach)

3

Return on Investment

In a recent study published by Health Affairs, Harvard Economists reported that medical costs

fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs

fall by about $2.73 for every dollar spent.

Baicker, K., Cutler, D., Song, Z. Workplace Wellness Programs Can Generate Savings. Health Affairs, February, 2010 29:2 4

Beyond ROI-Building The Business Case:The Full Cost of Employee Health

Personal Health Costs• Medical Care• Hospitalization• Pharmacy• Diagnostic Testing• Behavioral Health

Productivity Costs• Absenteeism due to

Illness and Injury• Employee Dissatisfaction• Customer Dissatisfaction

For each dollar spent on worker medical costs, employers absorb 2 to 4 dollars of health-related productivity costs

All Employers Benefit Small-Large, Fully-Self Insured,Application to all Demographics Industries, Goals & Objectives

Productivity Costs• Turnover• Variable Product Quality

STDLTD

• Workers’ Comp• Medical Costs• Salary Continuation

• Training Costs• Overtime• Temporary Staffing

• Administrative Costs• Off-Site Travel for Care• Replacement Training

5

Best Practice FrameworkIntegrated/Targeted Worksite Wellness Model

Health Assessment

Biometric Screening

Behavior Change

Programs

Onsite Activities and

Campaigns

Health & Wellness

Portal

Engagement

Monitoring & Measurement

Onsite at the Worksite

Identical Virtual Application

Maintain Health Improve Health Manage Health

Culture of Health

Healthier People =

Healthier Bottom Line

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The Five Fundamental Pillars

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Create the Vision

Align Workplace with the Vision

Create Winners

Reinforce the Culture of Health

Allow Outcomes to Drive Strategy

Dee Edington, PhD., Zero Trends, 2009

Create the Vision

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• Leadership

• Business Strategy

• Culture of Health

Markel Corporation

• CEO led• Long-term commitment

to employee health• Full time director of

health programs

Align Workplace with the Vision

9

• Branding

• Policies

• Employee Engagement

Markel Corporation

• “Live Well” program• HR guidelines support

vision• Healthy food options• Fitness Facilities

Create Winners

10

• Improve Health

• Stay Healthy

•Don’t Get Worse!

Markel Corporation

• HDL, Inc. Advanced Lab Testing• Clinical Health

Consultants • Digital tools• On-going fitness

challenges

Reinforce the Culture of Health

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• Incentives

• Rewards

• Reinforcement

Markel Corporation

• Incentive Strategy1) Advanced Lab Testing

2) Clinical Health Consulting

3) Annual physical

• Reinforcement

Associate recognition

Allow Outcomes to Drive Strategy

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• Integrate

•Measure

• Sustainability

Markel Corporation

• HDL, Inc. Aggregate Report• Stratification• Claims data & trend