Healthcare Consumerism

Multiple Employer Case Studies

1. Burger King and CDHP  - Many businesses have determined that to compete in a global economy, they must keep a lid on  healthcare costs -- currently rising at twice the rate of inflation. A new Miami Herald/Watson Wyatt survey of employers in South Florida shows that they are doing this by moving employees to high deductible health plans with lower premiums and by creating wellness programs that include everything from on-site clinics to yoga classes.... Download 2008 Burger King and CDHP

2. Whole Foods  - Whole Foods is on the forefront of a campaign to change that. The 159-store grocery chain last year adopted a health plan that encourages its 30,000 or so workers to feel a bit of the pain every time a doctor sends out a bill. The new "consumer driven" medical coverage gives employees more of a financial stake in what they pay for medical care in hopes of slowing the growth in medical costs... Download 2004 Whole Foods WSJ Healthy Trend

3. Allegent CDHP Employee Experience Video -  Exercise and employee engagement...Download 2007 AlegentEmployee_rebate_04

4. USHealth Group CDHP - In anticipation of the bad news on their health plan costs, the company had requested an alternative quote from United for a high deductible HSA qualified plan.  .  The premium savings were compelling; instead of a 19% increase, the high deductible premium was 28% less than they had been paying.  That lowered their cost per employee from $6,660 to just under $4,000.  The final piece of good news recently arrived in the form of UnitedHealthcare’s 2006 renewal notice.  The Company’s broker was all smiles as he communicated that based on United’s projection of a 67% loss ratio under the new plan, United was offering a mid single digit renewal increase!!!  As USHEALTH Group’s management had hoped, the new HSA plan was a huge success for all concerned!!!  Download 2006 USHealth Group - No Brainer_Final

Ohio State Paying for Healthy Lifestyles

Cashing in on healthful lifestyles

State paying its workers to 'take charge, live well'

Thursday,  January 17, 2008 3:29 AM

By Alan Johnson

THE

COLUMBUS

DISPATCH

The state of Ohio is paying employees $5 million to get healthy.

On Friday, about 4,000 employees will get the first installment in their paychecks of what could be up to $200 in incentive payments, when spouses are included. In return, they must undergo health assessments and screenings, and get involved in programs to help them exercise, lose weight, stop smoking and reduce stress.

The state will spend $10 million in taxpayer money on the "Take Charge, Live Well" program through June 30, including $5 million to providers for tests and screenings, personal health coaching and a nurse advice line. About 84,000 employees and spouses are eligible; state officials expect participation to be far lower.

More than 500 state workers, most of them from the State Bureau of Workers' Compensation, showed up yesterday for screenings at the Green Building, 30 W. Spring St.

What's the payoff for the state's $10 million investment?

Hugh Quill, director of the Ohio Department of Administrative Services, the business arm of state government, said it's a twofer: a $35 million annual savings (after two to three years) on health-care costs, plus a more healthy and productive work force.

The state is self-insured and will spend $468 million on employee health care this fiscal year, an 82 percent increase over the $257 million spent in the 2000 fiscal year.

"These incentives are important to drive our employees to do health assessments that will lead them to get out in front of their preventable conditions," Quill said.

Preventable conditions are those that employees can help change -- high blood pressure, heart disease and diabetes, among others -- by making lifestyle changes in diet and exercise. The state estimates that preventable conditions account for 44 percent of its health-care bill.

Quill said the state needs all the help it can get at a time when it is "being challenged economically."

The program was suggested by a joint management-labor health-care committee formed in 1991 to figure out ways to reduce state health-care costs.

"The next step is for people to take personal responsibility for the management of their health," said Carol Bowshier, health-care benefits coordinator for the Ohio Civil Service Employees Association, the union representing the majority of state workers.

"If we can assemble the kind of information we need to target programs to prevent development of disease in the work force, it will be worth a lot more than $50."

Mary Ellis, health manager for administrative services, said employees got a $25 stipend for undergoing screenings like the ones yesterday. They can get another $50 for doing a longer health assessment and a final $25 for getting an annual physical or mammogram or working with a health coach.

Several local companies have given employees incentives to focus on their health in the past year. Private-sector benefits consultants say the programs help reduce health-care costs, but the payback doesn't come for up to three years.

ajohnson@dispatch.com