Using Incentives to

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Using Incentives to Promote Healthy Behavior and
Workforce Productivity
Thomas Parry, Ph.D. President Integrated Benefits
Institute October 23, 2007
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Survey-Partner Organizations

• National Business Coalition on Health
• Pacific Business Group on Health
• Los Angeles Business Coalition on Health
• Maine Health Management Coalition
• Midwest Business Group on Health
• Nevada Health Care Coalition
• Employer Health Care Alliance
• Savannah Business Group

• Memphis Business Group on Health
• Mid-America Coalition on Health Care
• Colorado Business Group on Health
• Indiana Employers Quality Health Alliance
• Pittsburgh Business Group on Health
• Oregon Coalition of Health Care Purchasers
• Matria Healthcare
• American Association of Occupational Health
  Nurses

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Key Questions

• What health and productivity initiatives and
  related objectives do EMPLOYERS have in place?
• What do employers want from EMPLOYEES in these
  programs?
• How will employers seek to motivate employees to
  these ends?
• What is most effective in these approaches and
  how would employers improve?

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Survey Methods

• Harris Interactive, known for Harris Poll,
  conducted the web-based survey during summer,
  2007
• 500 responses from a range of employers (size,
  public/private, industry) representing 5MM lives
• Publication in early 2008

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Key Findings

• Health promotion is the most common initiative,
  demand mgt the least
• Controlling medical costs is the key objective,
  absence reduction is important
• Employee participation is the most important
  goal, outcomes the least
• Incentives are used far more often than
  disincentives
• Cash-based and benefits-based incentives are
  most common

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What health and productivity initiatives do
employers have in place and what do they want to
achieve?
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Employer Interventions
Health Promotion
HP Initiatives
Disease Mgmt
Disability Mgmt
Demand Mgmt
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Initiatives in Place
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Employer Objectives
Cost Control
Reduce Absence
Business Objectives
Better Productivity
Improve Health
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Top-Two Objectives

• Health promotion
• Improve health (99)
• Control medical costs (90)
• Disease management
• Reduce medical costs (96)
• Improve health (84)
• Disability management
• Reduce disability payments (88)
• Reduce absence (87)
• Demand management
• Reduce medical costs (88)
• Utilize benefits more effectively (87)

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Measuring Impact -Improved Productivity-
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Employer Interventions
Employees
HP Initiatives
Business Objectives
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What do employers want employees to do relative
to these initiatives?
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Goals for Employees
Participation
The What
Behavior Change
Outcomes
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Goals for Employees
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Initiatives and Goals
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How will employers motivate employees to those
ends?
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Incentives Disincentives
Cash-based
Benefits-related
The How
Prizes/gifts
Salary/job
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Incentive-Based Strategies
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Use of Incentives/Disincentives -IBI Sample
Employers-
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Current Incentives
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Goals by Incentive Type
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Current Disincentives
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Goals by Disincentive Type
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How Much? -Per Participant per Year-
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What strategies are most effective and how would
employers improve?
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Incentives Effectiveness
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Disincentives Effectiveness
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Making Improvements -Top 3 change strategies-
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How it Fits Together
Incentives/ Disincentives
Initiative Structure
EE Response
Business Objectives

• Participation
• Behavior change
• Outcomes

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Response Panel

• William Lockhart
• Manager - Health Welfare, ABB
• Pam Shannon
• Vice President of Corporate Health, TriHealth
• Deb Dailey
• Vice President, Wellness,
• Nationwide Better Health

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Questions for Panel

• What has been biggest challenge in implementing
  incentive-based programs?
• How do you determine the most effective type and
  value of incentives/disincentives used?
• What has been the most successful
  incentive-based initiative you have tried, why?
• What do you see as the next frontier in
  incentive-based initiatives?