Healthy Lifestyles Cooperative

1
Healthy Lifestyles Cooperative

• An Effective
• Small Employer Approach
• To Minimizing Health Insurance Costs

2
Agenda

• Whats Not Working
• What Needs to Happen
• How the Co-op Helps

3
Our Mission

• Stabilizing Health Insurance Rates Through
• Cooperative Purchasing
• Personal Accountability
• Healthier Lifestyles

4
Weve Learned A Lot . . .

• Whats Not Working
• 15 - 35 Annual Increases
• Paying to support the current Sick Care system
• Re-bid every second year
• No fundamental change discussions
• Moving towards bottomless pit

5
Weve Learned A Lot . . .

• Premium Levels are driven by a Persons Recent
  Claims History
• PLUS
• Forecasted Claims History
• SO

6
Weve Learned A Lot . . .

• To Lower Premium Trends
• Your People MUST Have A Lower Forecast Of Sick
  Care claims.

7
Weve Learned A Lot . . .

• Simplifying Your People Need To Have
• Lowering BMI . . . Lower intake of disease
  causers.
• Higher Aerobic Level . . . ability to fight off
  disease high energy thinking.

8
Weve Learned A Lot . . .

• Best Chance Of Creating Change In People That
  Reduces Claims/Premium Trends?
• WORKSITE Culture Change!

9
Weve Learned A Lot . . .

• What Needs To Happen
• Healthier Lifestyles (BMI, Fitness) derived from
• Greater Personal Accountability derived from
• Working and Sharing Together

10
Weve Learned A Lot . . .

• And If You Dont . . . MORE OF THE SAME.....
• Unsustainable Annual Increases
• Thriving Sick Care system
• Increasing of Family Incomes
• Moving Towards a Black Hole
• Your Employees Health Gets Worse, Not Better . .
  . on YOUR watch

11
Who Are We?

• Stand alone entity
• Sponsored by NPRG/GB Chamber
• A health insurance cooperative under WI Coop Care
  law
• Formed two years ago
• 172 insured member companies with 3200 insured
  lives

12
Our Organization

• 9 member elected volunteer Board of Directors
• Low overhead/small staff
• Committees composed of Co-op members
• Insurance Carrier
• Wellness Plan Provider / HRA
• Education Promotion
• Comparative Pricing

13
Co-op Board and Staff

• Phil Hauck, president (TEC)
• Tim Day, vice president (The Weyers Group)
• John Bloor, secretary (NEW Curative)
• Nan Nelson, treasurer (Green Bay Area Chamber)
• Paul Jadin (Green Bay Area Chamber)
• Graham Ness (Forsite Benefits)
• Dan Madigan (FEECO International)
• Chuck Martin (Hansen Frozen Foods)
• Ted Phernetton (Cerebral Palsy, Inc.)
• Randy Connour, Executive Director
• Sherry Freeman, Education Website Coordinator

14
Our Program

• Health Risk Assessments
• Yearly for all covered adults
• Personal Development Plans / Coaching
• High Deductible Insurance
• Rate caps tied to wellness program
• Rewards For Healthy Lifestyles
• Medical Price Reporting
• Professional Staff / Committees To Keep Improving
  Performance

15
Our 2007 Results

• Real Results
• 90 Engagement
• Typical Nationally is less than 30
• 58 Achievement of 1st Wellness Performance Level
• Typical within Vitality is 13
• 8 Cap on 2008 Insurance Premiums
• What was your 2008 premium?

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Our 2007 Results

• Real Results
• 6 Improvement in HRA Scores (1690 repeat
  participants). All improved
• Body fat, weight, blood pressure, cholesterol,
  tobacco use
• 5.3 moved out of highest risk category
• 1.8 average reduction in claims costs for each 1
  pt. improvement in HRA score thats a potential
  7 savings for Co-op Members.

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Our VisionCommunity of Focus

• Individual Responsibility
• Joining together to be effective
• Transparency
• Education and reporting that
• motivates healthy lifestyles and
• improves utilization decisions
• Selection of the most responsive providers
• An increasingly efficient health care system
• Resulting in
• Long term stability of health care costs

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Our Insurance Approach

• Group Health Coverage - Humana
• Groups as small as 1 qualify
• Over 118 hospitals, 9300 physicians in Wisconsin
  ChoiceCare Network
• Humana wellness programs, EAP, COBRA
  administration
• Consumer Driven Plans Deductibles -
• 1500/2000/2500/3000/4000/5000

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Our Insurance Approach

• Pricing
• 3 discount applied to medical and specialty
  products (dental, life, vision, disability and
  work site benefits.
• Cooperative Rate Caps tied to wellness program
  participation
• Renewals Cannot Exceed 15

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WHY Consumer Driven?

• THE Key to Success Is
• The Consumer
• Taking Charge of Their own Health!

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Why a Three Year Commitment?

• Allows Humana to predict risk and stabilize
  pricing with greater certainty
• Eliminates adverse selection
• Creates third closed pool, coverage begins 1-1-09
• If you decide to opt out later, there will be a
  penalty of 20 of your premium
• for remainder of 3 year term.

22
What Organizations Will Benefit?

• Those Willing to
• ACTIVELY Promote
• Healthier Lifestyle Behaviors
• to Employees,
• INCLUDING Required Participation
• in Wellness Programming

23
Information, Support Tools

• www.healthylifestylescoop.org
• Personal experiences
• group emails
• online forum
• Tactics for
• Health Improvement
• Employee Engagement
• CEO Meetings
• Champ Meetings
• Online Community Forum
• Humana web tools

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Information, Support Tools

• Understanding the System
• How it works, and doesnt work
• Medical Systems Pricing
• Employer level information
• HRA completion
• Wellness Program engagement
• Co-op wide information
• Claims, Health Risks

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How Are We Financed?

• Non-refundable membership fee, based on company
  size (250, 500, 1000)
• Ongoing administrative fee
• 5 pepm
• Wellness fee currently 12.50 papm

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Where Does the Money Go?

• Membership Fee
• Underwriting
• Group set-up
• Administrative Fee
• Staff
• Programming Reporting
• Wellness Fee
• Health Risk Assessments
• Ongoing Coaching for members w/Severe Risk

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Role of Your Insurance Advisor

• Very important
• Insights into what is best for you given the
  current market
• Market-standard commissions
• Must be Certified by the Co-op

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Independent Printing

• 300 Employees
• 180 on the Health Insurance

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Independent Printing

• Renewal increases
• 2005 51
• 2006 35
• 5000 individual deductible
• 70/30 coinsurance
• 8000 individual out of pocket max
• 16000 family out of pocket max

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Independent Printing

• At a time when
• They had a wellness program
• On-site nursing
• They were actively attempting to manage claims
  costs

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Independent Printing

• 8000 out of pocket max

1500 out of pocket max
32
Independent Printing

• Health risk assessment scores
• 2003 75.4
• 2004 74.9
• 2005 73.2
• 2006 74.0

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Independent Printing

• Health risk assessment scores
• 2003 75.4
• 2004 74.9
• 2005 73.2
• 2006 74.0
• 2007 76.6

With HLC!
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Independent Printing

• Risk HRA
• Category Score 2007 2008
• Minimal Risk 86-100 31.3 44.8
• High Risk 51-60 13.4 7.5

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Independent Printing

• Past renewals
• 2005 51
• 2006 35
• 2007 Joined HLC _at_ comparable rates as
  2006
• 2008 renewal 11.47

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Our / Your Program

• Health Risk Assessments (Annual)
• Personal Development Plans / Coaching
• Improved Workplace Productivity
• Rate Caps Tied to Wellness Program
• Significant Rewards For Healthy Lifestyles
• Medical Price Reporting
• Professional Staff / Committee Support To Keep
  Improving Performance

37
Next Steps

• Immediately
• Discuss with your Co-op accredited insurance
  advisor
• By September 15th
• Join the Healthy Lifestyles Co-op which includes
• Completed membership application form
• Payment of membership dues
• Signed Three Year Insurance Agreement
• Join the Green Bay Chamber, Non-Profit Resource
  Group, or a farmers co-op

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Next Steps

• By October 1st
• Employees expecting to participate in health plan
  will answer Humana health questionnaires
• By October 15
• You will receive your individual proposal and
  rate quote from Humana
• By November 7
• You will analyze the cost and benefits of joining
  the HLC with your insurance advisor
• You will withdraw or commit to Pool 3 for 1-01-09

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• Take your information and membership forms.
• Call Randy Connour with any questions
  920-593-3426
• To Join, please return
• 1.) Membership Application
• 2.) Membership Fee payment
• 3.) Signed Three Year Insurance Agreement
• By September 1st!

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QUESTIONS?
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THANK YOU!