Council on Employee Health

1
Council on Employee Health Productivity
Creating an EMPAQSM How the Buzz is Growing
About EMPAQSM
Presentation to the DOL September 20, 2006
2
When Senior Management Asks

• Do we have an absence problem?
• How do we compare against our competition?
• Why are our numbers increasing?

3

• Can you answer?

4

• Creating Value for Employers
• via
• Standardized Metrics

5
The Branding of EMPAQ
Employers, Insurers, TPAs, Brokers, Consultants
and Academia all provided input to create the
chosen brand name
(E) mployer (M) easures of (P) roductivity, (A)
bsence and (Q) uality
October 2002 NBGH Conference
6
Who is Behind the Project?

• Council on Employee Health Productivity (CEHP)
• Formed early in 2001
• Most active innovative Council established by
  the National Business Group on Health
• Major priority is to address problems and issues
  facing employers regarding absence, productivity
  disability programs

7
2006 CEHP Member Listing
IBM Ingenix Johnson Johnson JPMorganChase LewisC
o Lockheed Martin Mercer HR Consulting Pitney
Bowes QuadGraphics Sedgwick CMS 3M
Company Watson-Wyatt
Aon Consulting Ascension Health Boston
Scientific Cisco Dell EDS Emdeon General
Electric GlaxoSmithKline Hannaford Bros. H-E-B
Grocery
8
Categories and Metrics
Administrative Effectiveness 10. Timeliness of
Claim Payment 11. Accuracy of Payment of
Benefits 12. Timely Decision of
ClaimAcceptance 13. Accuracy of Decision of
Claim Acceptance

• Cost
• 1. Benefit Cost per Employee
• 2. Average Benefit Cost Per Claim
• 3. Benefit Cost as a of Payroll
• Productivity Outcomes
• 4. Lost Days per 100 Employees
• 5. Average Claim Duration
• 6. Annual Claim Incidence
• 7. Employee Satisfaction
• 8. Return to Work Effectiveness
• 9. Family Medical Leave Measures

These protocols serve as recommendations to
employers to measure various claim services. At
this time, data are not collected and reported on
these protocols
9
The Metrics, By Program
10
Making the Business Case

11
Limited Answers, But Why?

• In Healthcare
• HEDIS provides definitions and standards against
  which delivery of medical care is measured
• In Health and Safety
• OSHA has developed standards and measures
  programs against them
• In Absence and Disability
• there was no standardization of measures, no
  regulatory body, no answers

12
Evolution Phases 2001 2003
Describe Project
Proof of Concept

• HIGHLIGHTS
• Define Project Scope
• Establish Funding
• Environmental Scan
• Thought Leader Input
• Create Data Definitions
• Complete CEHP Feasibility Pilot
• Define Collaboration Goals
• Build Consensus Strategy Industry-Wide

• HIGHLIGHTS
• Kicked Off Industry-Wide Consensus Campaign
• Partnered with IBI, DMEC NCQA
• Established Tech Advisory Board
• Refined metrics for FMLA, RTW, Employee
  Satisfaction
• Expanded Employer Participation in IBIs Full
  Cost Study
• Devised 2004 Delivery Model

13
Evolution2003 - 2005
Including Employer Focus Groups
14
Technical Advisory Board
Participating Organizations

• IBI
• Aon
• MEDSTAT
• CIGNA
• Prudential
• Watson-Wyatt
• Hughes Electronics
• LewisCo., Inc.
• GlaxoSmithKline
• Merck
• Towers Perrin

• Sedgwick CMS
• Mercer HR Consulting
• Qwest
• VPA
• AHPM
• Ingenix
• Hewitt
• SHPS/eBenX
• DMEC
• HealthPartners
• GUAA

15
TODAY, A Company Can

• Improve its Outcomes
• Ability to track, assess manage to standards
  over time
• Validate relationship between health and
  productivity
• Enhance its Quality
• Improve services for employees
• Establish standards measures for credible data
  analysis
• Collect evidence-based results to correlate
  initiatives with clear outcomes
• Effectively Manage its Costs
• Improve program industry credibility
• Quantify outcomes with reproducible methods
• Establish clear and consistent ROI document
  return on human capital investment

16
Value Proposition -Employers Suppliers

• Employers can
• a.   Use standardized metrics within their
  organization, with other EMPAQ certified
  employers, or with their supplier partners.
• b. Operate with confidence that data was
  gathered utilizing established criteria, ensuring
  data integrity.
• c. Implement protocols for determining the
  effectiveness of health and productivity
  management programs.
• d. Obtain current, comparative results for
  internal analysis.

• Suppliers will
• a.   Provide value and confidence to clients
  that data reported is certified accepted by the
  industry.
• b. Set uniform standards for measurement that are
  Employer/Client focused Outcome Driven.
• c. Assist clients with collection and submission
  of program data to ease burden on employers.

17
EMPAQSM InsideWhy Participate?

• Metrics are standardized and certified by
  employer and industry leaders
• A company is able to examine and benchmark their
  Cost, Incident, and Duration of Absence
• Via IBIs Benchmarking Programs
• Employers and their various strategic partners
  can establish a starting point for education,
  discussion, and examination

18
2006 CEHP Sponsors and Partners

Business Group Founding Sponsor
19
Process Map
Process Map
Potential Data Provider
Provide Data
Benchmarking/ Data Collection
EMPAQ Certification Activities
EMPAQSM Inside RESULTS Certified Data Reported
by Industry with Individual Reports Annual
Reports
20
Training

• Four Interactive e-based Training Modules
• Workers Compensation
• STD
• LTD
• Family Medical Leave

21
Certification

• Required to pass on-line Post Test to achieve
  certification
• Certification is proof of your knowledge and
  understanding of the process to collect the
  standardized EMPAQSM metrics
• Certification is for submission of data

22
KEY LESSONS LEARNED

• Employers embrace the concept of standardized
  data elements
• New EMPAQSM Single-Program approach to
  benchmarking appears to make participation more
  accessible for employers
• Participation levels and data completeness
  initially posed a challenge
• but vastly improved for WC in 2005
• New data collection strategies needed in 2006

23
Results

• Since 2004
• 247 employers participated
• 556 data sets collected
• 15 different industry sectors
  represented
• Over 400 Employer Supplier Representatives
  Trained Certified

24
Sample of Participating Companies

• AOL
• Ascension Health
• The Auto Club Group
• The Boeing Company
• Campbell Soup
• Coca Cola Bottling
• Coors Brewing Co.
• Dell
• General Electric Co.
• General Motors Corp.
• Georgia-Pacific Corp.
• Hannaford Bros. Co.
• H. E. B. Grocery Co.
• Highmark

• Honda of America Mfg.
• IBM
• Kraft Foods
• Levi Strauss
• Microsoft
• PepsiCo
• Pfizer
• Pitney Bowes
• SBC Communications
• Target Corporation
• Texas Health Resources
• UnitedHealth Group
• US Steel Corp.
• Wells Fargo Company

25
15 Different Industry Sectors

26
EMPAQSM Employer FocusGroup Discussion Points

• WHAT ARE THE CHALLENGES?
• WHAT COULD EMPAQSM DO BETTER?
• WHAT SHOULD FUTURE PROGRAM YEARS CONSIDER?

• WHY STANDARDIZED METRICS?
• WHAT BENEFIT(S) DO WE DERIVE?
• WHAT BENEFITS HAVE WE SEEN?
• WHAT ACTIONS HAVE BEEN TAKEN?

27
VISIT WWW.EMPAQ.ORG
FOR MORE INFORMATION