Healthy Lifestyles Cooperative

1
Healthy Lifestyles Cooperative

• An Effective
• Small Employer Approach
• To Health Insurance

2
Our Mission

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

3
The Co-ops Advantages

• 1.) We're probably 50 cheaper over the next four
  years . . . unless you think your insurer will do
  something magical.
• 2.) You will have a sophisticated, committed,
  supportive team behind you and with you . . .
  today you don't.
• 3.) You AND your employees AND their families
  will benefit from a money-driven focus on
  wellness and fitness improvement. You will make
  THEIR LIVES BETTER!
• 4.) You get to be part of something
  ground-breaking, a new model . . . instead of
  continuing to be a victim.

4
Who Are We?

• Stand alone entity
• Sponsored by the Non-Profit Resource Group and
  Green Bay Area Chamber of Commerce
• A health insurance buying cooperative
• Organized under Wisconsins Coop Care law
• Formed two years ago
• 172 insured member companies with 3200 insured
  lives

5
Our Organization

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

6
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

7
Before the Co-op

• 98 of companies not self insured
• No leverage . . . adverse selection
• 25 - 35 annual premium increases
• Subject to protections, and mandates, of WIs
  Small Group Insurance laws
• Little attention to pro-active health
• Little of no personal responsibility
• Illegal to create a purchasing group

8
DO NOTHING?

• Double digit increases in health insurance
  premiums
• Employee health continues to decline
• Health care costs continue to rise uncontrollably

9
After the Co-op

• Major wellness initiatives
• A company fitness and wellness culture driven by
  your Champ
• Limited pools with three year commitments
• Real rate caps and guarantees
• Broad, inclusive health network
• Individual Health Savings Accounts (HSAs) or
  Health Reimbursement Arrangements (HRAs) usually
  partially funded by the company, that creates
  personal responsibility
• Fully insured, high deductible plans to choose
  from

10
Our Approach

• Through Pooling, do for small employers what
  large companies can do . . .
• Employees and dependents lead healthier
  lifestyles, and make better use of health care
  services
• Financial Incentives
• Information
• Possible first year cost reductions, and long
  term rate stability
• Multi-year commitment
• Pooling of Risk
• Rate caps and guarantees as incentives

11
Our VisionA Community of Focus

• Individual responsibility
• Transparency
• Education and reporting that informs and
  motivates healthy lifestyles and correct
  utilization decisions
• Selection of the most responsive providers
• An increasingly efficient health insurance and
  health care system
• Long term stability of health care cost

12
Our 2007 Results

• Real Results
• 5 Improvement in HRA Scores (1690 repeat
  participants)
• Body fat (6.5), blood pressure (6.1), LDL
  cholesterol (4.9), Total/HDL Ratio (4.5),
  weight (4.4), tobacco use (3.3)
• 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.

13
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 premium increase last year?

14
How It Works

• Consumer Driven, High Deductible plans
• Paired with HSA or HRA
• Personalized quotes come after your groups
  health census data is collected

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Why Consumer Driven?

• Members take ownership for their personal health

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How It Works

• Health Risk Assessments
• Employee and covered spouse
• Assesses healthy behaviors health status
• Blood draw and analysis biometrics
• Status report with score
• Coaching by health professionals for those that
  qualify
• Following recommendations to improvement
• Financial incentives
• Repeated testing and follow-up

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How it Works

• Information, Support, Tools
• www.healthylifestylescoop.org
• Reporting and utilization statistics of the pool
• Personal experiences, via group emails and online
  forum
• Feedback to your organization on comparative
  statistical performance
• Cost and quality information by procedure for
  different hospitals, clinics and doctors
• CEO Meetings
• Champ Meetings

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Why a Three Year Commitment?

• Once you get your rate quote, see the proposed
  plan design (this fall), and make your decision
  to opt into the pool, theres three year
  commitment.
• Creates third closed pool, coverage begins 1-1-09
• Eliminates adverse selection
• Allows insurer to predict risk and stabilize
  pricing with greater certainty
• If you decide to opt out later, there will be a
  penalty of 20 of your premium for remainder of 3
  year term.

19
How Are We Financed?

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

20
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

21
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

22
Introduction

• Bill Ziemendorf, Independent Printing

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Independent Printing

• 300 Employees
• 180 on the Health Insurance

24
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
• We had a wellness program
• On-site nursing
• We were actively attempting to manage claims costs

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Independent Printing

• 8000 out of pocket max

1500 out of pocket max
27
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 Vitality
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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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Healthy Lifestyles Cooperative
32
Next Steps

• Immediately
• Discuss with your Co-op accredited insurance
  advisor
• By July 15
• 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

33
Next Steps

• By August 1
• Employees expecting to participate in health plan
  answer online health questionnaires
• By October 1
• Receive your individual proposal and rate quote
• By October 15
• Analyze the cost and benefits with your insurance
  advisor
• Withdraw or commit to Pool 3

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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 July 15!

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QUESTIONS?
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THANK YOU!