wellness in the workplace study
TRANSCRIPT
Wellness in the Workplace Study
The impact of a consumer-driven benefit strategy on workplace wellness programs
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Welcome
Speaker
Kara Speer, M.P.H. Population Health Consultant, Optum
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Purpose Understand the approach that Human Resource professionals are taking to administer health and wellness solutions at their companies
Highlight differences between companies that offer:
Background
3
CDHP and/or high deductible (HD) plans only
CDHP and/or HD plans in addition to traditional plans
Traditional plans only
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Wellness program penetration & administration
Strategic indicators
Incentives
Success metrics
Environmental health
Health exchanges
The following topic categories were assessed in our survey:
Survey topics
4
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Methodology
Method • Web-based survey with respondents who
are members of an online panel
• Surveys were conducted from December 17 through December 28, 2012
• n = 489 answering plan type: • 98 CDHP/HD only • 267 CDHP/HD + traditional • 124 Traditional only
Analyst notations • Statistically significant differences are reported
at the 95% confidence level and all noted differences by subgroup are significant differences
• Percentages in charts and tables may not sum to 100% due to rounding
5
December 17, 2012 – December 28, 2012
95% N = 489
CONFIDENCE LEVEL
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Respondent profile
Qualification criteria for respondents
• Company currently offers health and wellness programs to employees – Company offers at least two types of wellness programs
• Functions in Human Resource role at work – Respondent is involved in decision-making in regards to health benefits and instituting employee wellness programs
for their company
• Company has at least two employees
6
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Respondent roles
Those who offer multiple plan types are most often part of a decision-making team.
Most in each group are in Human Resource (as directors or managers) or Executives.
46%
25% 34%
54%
75% 66%
0%
20%
40%
60%
80%
100%
CDHP/HD only(A)
CDHP/HD +Traditional
(B)
Traditional only(C)
B
A
Decision-maker
Decision-Making Status of Respondents for Health & Wellness Programs
Part of a team
7
Letter indicates a statistically significant difference between groups
Role CDHP/ HD only (A)
CDHP/HD + traditional (B)
Traditional only (C)
Executive/Owner 34%B 23% 24%
Human Resources 33% 44%A 45%
General Management 22% 19% 14%
Administration 8% 14% 17%A
Communications/PR 3% 1% --
Functional Role
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Company profile
Those who offer CHDP/HD plans are more likely than others to be:
• Located in the Central region
• In the Finance or Insurance industries
B
A
8
Letter indicates a statistically significant difference between groups
Region of the United States
West Central Northeast Southeast
19% 15% 17%
26% 30% 36%
36% 32% 22%
19% 23% 26%
0%
20%
40%
60%
80%
100%
CDHP/HD only(A)
CDHP/HD +Traditional
(B)
Traditional only(C)
C C Role CDHP/ HD only (A)
CDHP/HD + traditional (B)
Traditional only (C)
Manufacturing 24% 17% 14% Health Care and Social Assistance 14% 12% 16%
Finance and Insurance 11%C 10%C 3%
Professional, Scientific, and Technical Services
8% 11% 9%
Retail Trade 7% 7% 7% Transportation and Warehousing 7% 5% 5%
Educational Services 5% 3% 3% Management of Companies and Enterprises
4% 2% 2%
Industry
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31%
13%
27%
20%
21%
24%
49%
67%
50%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD +Traditional (B)
CDHP/HD only (A)
Number of Employees in Organization
2 to 99 100 to 2,999 3,000 +
Company size profile
9
B
B
Letter indicates a statistically significant difference between groups
Large companies are most likely to offer CDHP/high deductible in combination with traditional plans.
Small Medium Large
AC
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Key insights
10
Employers accrue significant value when their benefit strategy is driven by an approach that emphasizes health ownership.
Employers with a CDHP/HD plan report the following benefits:
• Higher perceived levels of employee well-being
• Greater employee participation in programs
• High levels of wellness program success
• Stronger emphasis on health account (HRA, HIA) integration with wellness incentives
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Key insights
11
Employers with a CDHP/HD plan are MORE LIKELY than employers with traditional plans to:
• Offer access to more wellness programs
• Have a long-term or annual wellness plan
• Have a dedicated wellness staff member
• Increase wellness spending over the next three years
• Track wellness goals and ROI
• Offer incentives at higher payout amounts
An employer’s benefit strategy approach influences their interest level and commitment to wellness programming
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Polling Question
12
How would you categorize your organization’s benefit strategy?
A. We offer a Consumer Driven Health Plan/ High Deductible Plan Only
B. We offer a Consumer Driven Health Plan/ High Deductible Plan + A Traditional Plan
C. We offer a Traditional Plan only (HMO, PPO, POS)
☐
☐
☐
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Strategic Indicators
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Strategic Indicators
21%
15%
31%
78%
84%
68%
0%
1%
1%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Employees’ Overall Well-Being
Outstanding (6-7) Neutral (3-5) Terrible (1-2)
Employees’ overall well-being
Companies that offer only CDHP/high deductible plans are more likely to feel their employees’ overall well-being is outstanding.
14
Letter indicates a statistically significant difference between groups
B
A
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Strategic Indicators
32%
30%
42%
67%
69%
57%
1%
1%
1%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Employees’ Overall Satisfaction
Satisfied (6-7) Neutral (3-5) Not satisfied (1-2)
They’re also most likely to perceive their employees as being satisfied with their entire work experience.
15
Letter indicates a statistically significant difference between groups
B
Employees’ overall satisfaction
A
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Strategic Indicators Numbers of programs offered
16
Number of Programs Offered
Wellness programs are more prevalent at companies offering CDHP/high deductible plans (with or without traditional plans).
• Regardless of plan type, the average number of programs offered increases with company size.
• All companies have been offering wellness programs for four to five years, on average.
2 to 4
40% 5 to 7
27%
8 or more 34%
Average: 6.6C programs
2 to 4 23%
5 to 7 31%
8 or more 46%
Average: 7.7AC programs
2 to 4 46%
5 to 7 27%
8 or more 27%
Average: 5.6 programs
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
B AC
B
Letter indicates a statistically significant difference between groups
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Strategic Indicators Numbers of programs offered: CDHP/HD only
17
Number of Programs Offered: CDHP/HD Only by Company Size
The average number of wellness programs offered increases with company size.
• The same is also true for those offering traditional plans..
2 to 4 89%
5 to 7 4%
8 or more 8%
Average: 3.4 programs
2 to 4 30%
5 to 7 48%
8 or more 22%
Average: 6.7A programs
2 to 4 18%
5 to 7 29%
8 or more 53%
Average: 8.2A programs
Small (A) Medium (B) Large(C)
BC A
AB
Letter indicates a statistically significant difference between groups Note: Small base sizes (Small n=26, Medium n=23, Large n=49)
A
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Strategic Indicators Planning
18
52%
9%
36%
33%
16%
45%
31%
11%
57%
0% 10% 20% 30% 40% 50% 60%
No plan at all
Both a long-term andan annual plan
Long-term orannual plan only
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Plan for Employee Wellness Those who offer only CDHP/high deductible plans are most likely to have a long-term or annual plan.
More than half of traditional plan employers do not have any type of plan.
Letter indicates a statistically significant difference between groups
C
AB
BC
Two in five who offer CHDP/HD plans say wellness spending will increase in the next three years.
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Strategic Indicators Wellness staffing
19
59%
39%
41%
58%
41%
58%
0% 20% 40% 60% 80%
No
Yes
Company Has an Individual Whose Sole Responsibility Is to Promote Wellness
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
The majority who offer CDHP/high deductible plans have staff dedicated to wellness (with one in three working full time).
Letter indicates a statistically significant difference between groups
C
C
AB
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Strategic Indicators Importance to benefits mix and approach to wellness
Wellness solutions are most important to those offering CDHP/HD plans.
For all, the top reasons for offering wellness solutions are promoting a healthier, more productive workplace (especially for those offering both plan types) and reducing health care costs.
20
25%
34%
44%
53%
58%
44%
19%
8%
12%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD +Traditional (B)
CDHP/HD only (A)
Importance of Wellness Solutions to Benefits Mix
Very important Somewhat important Not important
C
A
B
Most likely to: • Set participation
goals • Effectively
track ROI • Offer wellness to
family and retirees
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Strategic Indicators Polling Question
21
Will your company’s investment in wellness increase or decrease in the next 2-3 years?
A. Increase
B. Decrease
☐ ☐
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Wellness Program Penetration & Administration
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Wellness Program Penetration & Administration
77%
68%
57%
50% 49% 44% 44%
35% 31%
22%
77% 73% 73%
57% 58% 58% 61%
39% 35%
25%
76%
57% 57%
38% 42% 40%
35%
27%
19%
11%
0%
20%
40%
60%
80%
100%
Flu ShotsHealth and Wellness CommunicationsDiscount ProgramsHealth and Wellness WebsiteFitness ChallengesWellness CoachingHealth Risk AssessmentsDisease Management ProgramsHealth Biometric ScreeningsOnsite Clinics
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Wellness offerings
Wellness programs are generally more prevalent at companies offering CDHP or high deductible plans (even if traditional plans are also offered).
23
AC
Current Wellness Programs Offered
C
Fitness Challenges
Flu Shots Health and Wellness
Communications
Discount Programs
Health and Wellness Website
Wellness Coaching
Health Risk Assessments
Onsite Clinics
Health Biometric
Screenings
Disease Management
Programs
Letter indicates a statistically significant difference between groups
C C AC AC
C C
C C
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Wellness Program Penetration & Administration Methods overall
Across all plan types, most programs are being administered through onsite events or online. • Those offering CDHP/high deductible
plans are most likely to administer programs this way.
24
77%
66%
38%
32%
28%
25%
8%
83%
83%
47%
40%
40%
32%
18%
72%
70%
48%
38%
31%
34%
15%
0% 20% 40% 60% 80% 100%
Onsite events
Online
Off-site clinic or doctor’s office
Phone
Onsite clinic
Mobile**
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Current Administration Method Offered
C
C
AC
A
Letter indicates a statistically significant difference between groups
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Incentives
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Incentives
Offer 83%
Don't offer 17%
Incentives overall
Those with CDHP/high deductible plans offer incentives most often and also invest more in incentives.
26
Offering Incentives Percent of companies offering some kind of incentive
Offer 71%
Don't offer 28%
Don't know 1%
Offer 57%
Don't offer 43%
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Average incentive value: $168C
Average incentive value: $159C
Average incentive value: $132
Letter indicates a statistically significant difference between groups
B
AB
C AC
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Incentives
Offer 70%
Don't offer 26%
Don't know 4%
Incentives overall: CDHP/HD only
Among those with only CDHP/high deductible plans, large companies offer incentives most often.
27
Offering Incentives: CDHP/HD Only by Company Size
Percent of companies offering some kind of incentive
Offer 39% Don't
offer 61% Offer
90%
Don't offer 10%
Small (A) Medium (B) Large (C)
Average incentive value: $184
Average incentive value: $152
Average incentive value: $169
Letter indicates a statistically significant difference between groups
BC A
A
Note: Small base sizes (Small n=26, Medium n=23, Large n=49)
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Incentives
45%
28% 28%
22%
14% 17%
10%
4% 5%
39% 38%
32%
27%
32%
15% 14% 11% 11%
8%
16% 15%
22%
18%
8% 5%
14%
5%
0%
10%
20%
30%
40%
50%
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Types of incentives offered
Company contributions to a health account, discounts and giveaways are primarily offered by those with non-traditional plans. Those who offer only traditional plans are most likely to offer gift cards.
28
Incentives Offered to Workforce
Gift Cards
Premium Reductions
Merchandise
Points-based Rewards System
Vacation/ Personal Days Off
Cash
Giveaways Company Contributions to HSA, HRA
or HIA
Discounts
Letter indicates a statistically significant difference between groups
C
C C
C
C
C
AC
C C
C
A
A
AC
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Success Metrics
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Success Metrics
14%
19%
31%
33%
19%
18%
41%
19%
15%
26%
36%
21%
0% 10% 20% 30% 40% 50%
Rates that trend with industryaverages
Over 50% accessing program
An increase year over year
Active use by at least some ofstaff
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Determining success
Overall success of programs is high across all plan types.
Year-over-year increases are most important to determining successful participation among those who offer CDHP/high deductible plans + traditional.
30
B
C
Determining Successful Participation Rates
Active use by at least some of staff
An increase year over year
More than 50% accessing program
Rates that trend with industry averages
Letter indicates a statistically significant difference between groups
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Success Metrics Participation percentages
Companies that offer only CDHP/high deductible plans have the greatest participation in wellness programs.
Top barriers to participation are lack of time or interest across all groups.
31
Average Percent of Eligible Workforce Participating in Company Wellness Programs
52%
43%
49%
0% 10% 20% 30% 40% 50% 60%
CDHP/HD only (A)
CDHP/HD +Traditional (B)
Traditional only (C)
Letter indicates a statistically significant difference between groups
B
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Success Metrics Participation percentages: CDHP/HD only
Participation in wellness programs is high for all companies that offer only CDHP/high deductible plans, regardless of size.
32
Average Percent of Eligible Workforce Participating in Company Wellness Programs:
CDHP/HD Only by Company Size
54%
52%
51%
0% 10% 20% 30% 40% 50% 60%
Small (A)
Medium (B)
Large (C)
Letter indicates a statistically significant difference between groups Note: Small base sizes (Small n=26, Medium n=23, Large n=49)
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Success Metrics Factors
Most find each of these factors important in program success, across all plan types.
Companies offering CDHP/high deductible plans place more value than traditional-only companies on: ‒ Health risk reduction ‒ Claims/health care cost reduction
33
Factors in Determining Success of Wellness Programs:
□ Health Risk Reduction
□ Claims/Health Care Cost Reduction
□ Wellness Program Participant Rates
□ Increased Productivity
□ Employee Feedback/ Testimonials
□ Return on Investment
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Environmental Health
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Environmental Health
Companies that offer CDHP/high deductible plans are more interested in learning about environmental strategies than those offering only traditional plans.
35
Letter indicates a statistically significant difference between groups
32%
46%
42%
42%
39%
46%
21%
9%
7%
5%
5%
5%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Interest in Learning More
Extremely/very Somewhat Not very Not at all
C
AB
Interest in learning more about healthy environment strategies
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Environmental Health
Among those who offer only CDHP/high deductible plans, medium and large employers are more interested in learning about environmental strategies than small.
36
Letter indicates a statistically significant difference between groups
49%
44%
27%
41%
52%
50%
6%
15%
4%
4%
8%
0% 20% 40% 60% 80% 100%
Large (C)
Medium (B)
Small (A)
Interest in Learning More: CDHP/HD Only by Size
Extremely/very Somewhat Not very Not at all
B
Note: Small base sizes (Small n=26, Medium n=23, Large n=49)
Interest in learning more about healthy environment strategies: CDHP/HD only
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Environmental Health
6%
12%
18%
44%
53%
49%
24%
21%
19%
15%
7%
8%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Looking for Vendors
Strongly agree Somewhat agree Somewhat disagree Strongly disagree
Leveraging environmental strategies
Companies that offer CDHP/high deductible plans are more interested in looking for vendors to help leverage environmental strategies.
37
C
C
B
Letter indicates a statistically significant difference between groups
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Environmental Health
38% 32% 29%
24% 33%
43% 35%
30% 36%
0%
10%
20%
30%
40%
50%
CDHP/HD only (A) CDHP/HD + Traditional (B) Traditional only (C)
Interest in making changes
Two in five employers offering CDHP/high deductible + traditional plans have made changes to help employees make healthy decisions.
Top environmental changes across all plan types: vending machines, smoke-free campus
38
Has Made/Considered Physical Changes to Work Environment
Yes, made changes Yes, considered making changes but haven’t done so yet
No, haven’t made/ considered any changes
Letter indicates a statistically significant difference between groups
C B
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Health Exchanges
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8%
6%
27%
32%
40%
29%
32%
22%
36%
16%
19%
2%
3%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Likelihood to Offer Health Exchange Model
Very Somewhat Not very Not at all Already offer
Impact of health exchange model
40
A health exchange model is more appealing to those offering CDHP plans
C C
C
AB
Letter indicates a statistically significant difference between groups
C
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52%
42%
35%
15%
35%
40%
12%
16%
10%
12%
2%
8%
0% 20% 40% 60% 80% 100%
Traditional only (C)
CDHP/HD + Traditional (B)
CDHP/HD only (A)
Impact of Exchange (Among Likely to Offer)
Offer more wellness programs at no add'l cost Offer same at no add'l cost Offer at an add'l cost Stop offering
Impact of health exchange model
41
Letter indicates a statistically significant difference between groups
C
C
C
C
C
Switching to a health exchange model wouldn’t negatively impact wellness offerings. Many of those offering only traditional plans would even be likely to add more programs.
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Final Takeaways
42
A benefit strategy that emphasizes health ownership can: Enable organizational support for a health management strategy • Dedicated wellness staff • Strategic planning • High value incentives • Wellness spending Maximize the benefits accrued from that strategy • Higher perceived levels of employee well-being • Greater participation in wellness programs - Higher levels of wellness program success - Stronger integration of health accounts