Rewarding Employees for Good Health: HealthMiles

Elizabeth Bierbower

Ken Olson

Humana VP, Product Innovation

Horton Group, Division President

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Employer Challenges ƒ Rising healthcare costs ƒ Broad range of wellness programs; inhibits focus ƒ Difficult to evaluate impact of wellness investments

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Why Focus on Physical Activity

ƒ Physical activity programs can (1): ƒ Reduce short-term sick leave by ƒ Reduce health care costs by ƒ Increase productivity by

6% to 32% 20% to 55% 2% to 52%

ƒ Physical activity levels correlate with increased costs (2): ƒ In 2000, healthcare costs associated with inactivity >$76 billion ƒ Potential savings of $5.6 billion in heart disease costs if 10% of adults begin a regular walking program

Sources: (1) World Health Organization, (2) U.S. Department of Health & Human Services 3

Why Focus on Physical Activity ƒ California Study - measured the direct and indirect costs of : ƒ inactivity, obesity & overweight ƒ (Medical, Rx, Absenteeism, and Presenteeism) Lifestyle Risk Factors Inactive Obese Overweight

Incremental Costs; per Employee/Year* $2,400 $3,270 $515

U.S. Incidence 65% 32% 34%

Cost per 1,000 lives $1,560,000 $1,046,400 $175,100

* Californian Study.

ƒ Activity is easier to change and track than nutrition or dieting ƒ A focus on activity will directly impact obesity costs ƒ The activity needed to derive health benefits is misunderstood Source: The Economic Costs of Physical Inactivity, Obesity and Overweight in California Adults: Healthcare, Workers Compensation, and Lost Productivity., Chenoweth & Associates (2005) for the California Department of Health Services 4

Virgin’s Background

Fun

Value for Money

Brilliant Customer Service

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Competitive Challenge

Quality Innovation

Launching the Product

ƒ A consumer-centric health rewards program ƒ Rooted in the principles of prevention, exercise, & nutrition ƒ Offered through employers

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Member Experience

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Enroll online at virginlifecare.com, start earning rewards by filling out a health and fitness questionnaire

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Get a GoZone pedometer & join a healthclub at a discounted rate

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Get active & engage with the program

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Spend Cash on gift cards at over 50 retail partners

Earn Miles which convert to Virgin Life Care Cash

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Tracking Devices – Key Biometrics The HealthZone

The GoZone

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Rewards – Earning Miles

ƒ Measurement ƒ HealthZone Visits ƒ Health Snapshot ƒ Fitness Assessments

ƒ Effort ƒ LifeZone Visits ƒ GoZone Uploads ƒ Exercise Logging

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ƒ Achievement ƒ Maintaining or reaching milestones ƒ Blood Pressure, Body Fat %, BMI, Fitness Levels

The pilot and results to date

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The Humana pilot ƒ Through their interaction with the HealthMiles program, the study was able to track the following measurements for associates: ƒ Activity Levels ƒ Blood Pressure ƒ Body Fat ƒ Body Mass Index (BMI)

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The pilot ƒ Pilot run from March 2006 – September 2006 ƒ Beginning stats for 726 Humana pilot participants: ƒ 13.6% hypertension, 38.6% pre-hypertension ƒ 37% obese, 32% overweight ƒ Good distribution among age brackets ƒ 78.8% elected to have a GoZone Blood Pressure

BMI

Age Underweight 0.8%

Normal 47%

Hypertension 14%

50-59 12.2%

Normal 30.6%

Obese 37.0%

60+ 2.1% 18-29 24.7%

40-49 25.5%

Prehypertension 39%

Overweight 31.6%

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30-39 35.5%

The pilot NOT just attracting the healthy & fit Contrary to what would be expected, the profile of those who signed up for the program was not skewed to those who were already leading a healthy and active lifestyle…

US Incidence

Humana Incidence

Inactivity

65%

68%

Overweight

32%

32%

Obese

34%

37%

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HealthMiles at Humana NOT just attracting the healthy & fit HealthMiles participants in the pilot tended to have slightly higher severity scores* than the broader population. Severity scores of participants and entire eligible population 85

Severity Score

75 65 55 45 35

+ 55

-5 4 50

-4 9

40

45

-4 4

-3 9 35

-3 4 30

-2 9 25