Workplace Wellness in the Age of Healthcare Reform Barry Hall, FSA National Healthcare Reform Conference Los Angeles September 21, 2010

1 Health Care Reform Supports Wellness The “law of the land” says health is not just about reactive “sick care” – engagement is required. Nursing mother break time and accommodations required Calories to be posted in chain (>20) restaurants Preventive screening co-pays waived for employer plans* and for Medicare Wellness program grants to small businesses (<100 EEs) for wellness programs National report on effectiveness of wellness programs (after periodic surveys and research) National health promotion plan Workplace health promotion effectiveness research (plan sponsor tax of $1 per year per member, rising to $2) Health status-based incentives may rise from current 20% to 30%, and later, to 50%* Wellness program demonstration project in 10 states * Applies to non-grandfathered plans Childhood obesity demonstration project grants

4th Annual Global Wellness Survey Objective: Assess trends in employer-sponsored wellness strategies and practices Participants: 1,245 participating employers 47 countries 15 million employees All industry categories Reports: Global survey report Executive summary in 8 languages To be released in October 2010 www.BuckSurveys.com 2

Workplace wellness is: Global Growing rapidly Becoming a business imperative 3

Location of Employees 4 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Global Prevalence of Health Promotion Programs 5 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Globalization of Strategy 6 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey * Covers majority of employees regardless of geography

Status of Wellness Strategy 7 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Employer Objectives Driving Wellness Strategy 8 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Cost Burden of Chronic Disease Source: DeVol R, Bedroussian A, et al., An Unhealthy America: The Economic Burden of Chronic Disease. The Milken Institute. Oct. 2007. 9

Health Issues Driving Wellness Strategy 10 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Key Challenges: Motivating/engaging employees Measuring impact Fostering a “culture of health” 11

Prevalence of Incentive Rewards (or Penalties) 12 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

13 Do Incentives Work? Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Measurement and Outcomes 14 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Measurement and Outcomes 15 Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

Healthcare Cost Trend Impact 16 REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS AVERAGE ANNUAL REDUCTION IN HEALTH CARE TREND RATE – U.S. EMPLOYERS Preliminary (pre-publication) results from 2010 Global Health Promotion Survey

17 Building a “Culture of Health” EXTENT TO WHICH THE ORGANIZATION CURRENTLY HAS A CULTURE OF HEALTH 10% 23% 37% 22% 8% 5 = Very much so 4 3 2 1 = Not at All 33% 81%

Thank You! Barry Hall, FSA +1.617.275.8033 Barry.Hall@BuckConsultants.com www.bucksurveys.com www.buckconsultants.com