Project Proposal - Comprehensive Worksite Wellness Program

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Project ProposalPROJECT NAME:PROJECT ID:Comprehensive Worksite Wellness Program for Allegan County Government2012-045SUMMARY:Implement a comprehensive worksite wellness program for Allegan County with the intentof improving employee health and wellness and positively influencing future health careexpenditures for employees and the county.STRATEGIC FOCUS: Engaged Workforce and Financial StabilityDATE CREATED:LAST MODIFIED:5/3/201210/19/2012CONTENTS:Proposal1.0 Background2.0 Purpose3.0 Outcomes4.0 Stakeholders & Roles5.0 Project Costs6.0 Budget Considerations7.0 Schedule Considerations8.0 Personnel Considerations9.0 Other Considerations10.0 Strategy Map Alignment11.0 Questions and AnswersAttachmentsComprehensive Worksite Wellness Plan PresentationComprehensive Worksite Wellness PlanAppendix A: Wellness Program Goals and ObjectivesAppendix B: Five-Year Wellness BudgetAppendix C: Wellness Coordinator Position DescriptionAppendix D: Wellness Plan References

1.0 BACKGROUND:See attached Comprehensive Worksite Wellness Plan.2.0 PURPOSE:Implement a comprehensive worksite wellness program for Allegan County with the intent of improvingemployeehealth and wellness and positively influencing future health care expenditures for employees and thecounty.3.0 OUTCOMES / BENEFITS / DELIVERABLES:########Improved employee health and wellnessHealth care cost containmentImproved work culture and employee satisfactionDecreased absenteeismReduced injury ratesReduced disability costsIncreased productivityImproved retention and recruitment4.0 STAKEHOLDERS & ROLES:See attached Comprehensive Worksite Wellness Plan.5.0 PROJECT COSTS:See attached Comprehensive Worksite Wellness Plan - Appendix B: Five-Year Wellness Budget6.0 BUDGETARY CONSIDERATIONS:Funding for this project is available through a surplus in the county’s self insurance fund where medicalinsurance, workers’ compensation and short term disability contributions are kept. Over the last few years,the county has been paying more into these funds than has been expended in claims resulting in a surplus.The county’s auditors have indicated that the surplus can be used to fund wellness activities. If successful,the wellness initiative would reduce claims and help contain the county’s future health insurance costs.7.0 SCHEDULING CONSIDERATIONS:The plan is ready to execute if approved.8.0 PERSONNEL CONSIDERATIONS:See attached Comprehensive Worksite Wellness Plan - Appendix C: Wellness Coordinator PositionDescription9.0 OTHER CONSIDERATIONS:None10.0 STRATEGY MAP ALIGNMENT:CUSTOMERSDeliver affordable and accessible services – Employees that are healthy and well are able to focus moreenergy on providing quality customer service. Proposal – Comprehensive Worksite Wellness Program2

FINANCIAL STABILITY Develop and maintain a balanced operational budget – Positively influencing health care expenditures willhelp the county maintain a balanced budget with less hardship on employees and without having toreduce services. Execute long-term financial planning – Positively influencing health care expenditures will give the countymore flexibility to make strategic investments as the economy recovers.PROCESSESBe efficient and cost effective – Dedicating resources to case management should achieve quicker andbetter outcomes to the benefit of the affected employee and the county. Measure and learn from outcomes – The program will be closely monitored and metrics generated atregular intervals to evaluate progress and success. Seek and implement innovative solutions – Pursuing worksite wellness as a strategy to influence healthcare costs is not a new idea, however, we will utilize innovative strategies to address and positivelyinfluence our organizations’ specific areas of need. ENGAGED WORKFORCE Foster a positive, team-based work environment – Lasting improvement in wellness attitudes andbehaviors is best achieved in a positive work environment where employees are encouraged andsupported as they make voluntary lifestyle improvements. Employ and retain high performing, quality employees – Employees that are healthy and well have moreenergy and are more productive. Promote safety and wellness – Promoting safety and wellness is the primary goal for implementing theworksite wellness program outlined in the attached plan.11.0 QUESTIONS AND ANSWERS:Does this plan have support among county employees?This plan has been presented and discussed by the Administrative Leadership Team (ALT). The ALTsupports the plan and individual members indicated a strong willingness to participate in the worksitewellness program should it come to fruition.Almost all union contracts contain the following statement about wellness benefits: “The employer shall offerany additional wellness / prevention benefits, which are offered in the future by the County of Allegan toemployees in general.”Do any major employers in the area have worksite wellness programs?Perrigo Company, Kalamazoo County, Kent County, Gentex Corporation, the City of Holland, Steelcase,Spectrum Health, Kalamazoo Valley Community College and Oakland County have wellness programs.Below is contact information for the coordinator responsible for some of those programs.Sue Rodia - Senior Employee Benefits AnalystPerrigo Company - Human Resources Department(269) [email protected] Eastern AvenueAllegan, Michigan 49010Jo Woods - Director HRKalamazoo County(269) 383-8998201 West Kalamazoo Avenue, Room 202Kalamazoo, Michigan 49007-3777Proposal – Comprehensive Worksite Wellness Program3

Kim Busscher, Wellness CoordinatorGentex Corporation(616) 772-1590 Ext. [email protected] N.Centennial StreetZeeland, Michigan 49464Nancy Scarlett – Director HROakland County(248) 858-0530Oakland County Human Resources, Dept 4402100 Pontiac Lake Road, Bldg 41 WestWaterford, Michigan 48328Can available funds support higher-than-estimated participation rates in the wellness program?The surplus is adequate to cover higher participation rates and their use may be warranted if successfuloutcomes and savings can be demonstrated.Will the wellness program be offered to non-general fund funded entities?Yes. Funding is coming from health insurance contributions and therefore wellness participation andincentives would be available to all county employees offered county health insurance.Will those who opt out of the county’s health insurance be eligible?Yes.What is the minimum level of participation required to be counted as a participant in the worksitewellness program and receive an enrollment incentive award?An employee must complete the program enrollment form and participate in an annual HRA (health riskassessment) and biometric screening.Will personal health data from HRAs (health risk assessments) and biometric screenings beavailable to the county?Individual personal health data will not be available to the county, only aggregate data.What department will the Wellness Coordinator report to?This position will report to Human Resources.Will a 24-hour position be adequate to implement this plan?This is a reasonable place to start given the funding available without tapping into the general fund.Will fitness center fees being used to implement this program?Not as presented in this budget. It is felt strongly that those paying fees to the fitness center would like theircontributions re-invested into maintaining and improving the fitness center, not used to help fund a wellnessprogram for other employees. Some fitness center funds could be used to cover the Wellness Coordinatorcosts directly associated with managing the fitness center.Proposal – Comprehensive Worksite Wellness Program4

Project ProposalPresentation to the Board of Commissioners 10/25/2012Project Name: Comprehensive Worksite Wellness Programfor Allegan County GovernmentPurpose:Improve employee health and wellness and positivelyinfluence future health care expenditures foremployees and the county

Agenda Why wellness as a strategy? Goals and objectives Budget Impact Evaluation

Remember theStrategy Map?WellnessTeam’sFocusHighlightedSupport a united andENGAGED WORKFORCE Foster a positive, team-based workenvironment Employ and retain high-performing,quality employees Promote Promote safetysafety andandwellnesswellness

Why Wellness?Identified Benefits: Improved employee health andquality of life Improved work culture andemployee satisfaction Improved retention andrecruitment Reduced injury rates Decreased absenteeism Health care cost containment Reduced disability costs Increased productivity

Why Wellness? Each employed smoker costs 3,391 per year -- including 1,760 in lostproductivity and 1,623 in excess medical expenses (U.S. Centers forDisease Control). Employees who exercise once a week have health care costs of 680annually compared to 1,360 for those who do not. (Strategic EmployeeBenefits Service) 56% of AC employees reported they do not get enoughexercise (Allegan County Employee Wellness Interest Survey 2010). 78.5% inadequate fruit and vegetable consumption (Michigan BehavioralRisk Factor Surveillance System 2008-2010). Medical expenses for obese employees are estimated to be 42% higherthan for a person of healthy weight. Depression is our highest-cost health issue and accounts for 16% of ourtotal health care costs -- 77% higher than Blue Cross Blue Shield marketaverage of 9% (AON). Private and public sectors realize return on investment (ROI) of 3 to 1(Wellness Council of America).5

Wellness is SupportedWorksite wellness programs arebecoming standard. More than81% of employers invest in worksitewellness programs to managerising health care costs and Federal Governmentencourages worksite wellnessprogramsimprove employee health.(Wellness Council of America) Governor of Michigan is aworksite wellness proponent The right thing for AlleganCounty beginning in 2013

2010 Employee WellnessSurvey Results 57% (203/359) employees completed survey; 79% reported they would participate in acomprehensive wellness program; 51% reported they are not satisfied with theircurrent state of health; and 51% reported they would participate in lunch- &break-time wellness activities.

Wellness PlanFoundational Elements of the Wellness Plan: Continuation of the Wellness Team isintended to provide wellness programadvisement for outcomes analysis, programmodification based on evolving goals, andfuture strategies; as well as to serve asdepartment liaisons. Taking this peerleadership approach will increase employeeawareness and buy-in. The Wellness Teamwill include broad employee representation. Establishment of a Wellness Coordinator is vital for the coordination andexecution of wellness programming, Wellness Team leadership, promotion,outcome tracking, health-related expenditure analysis, claims casemanagement, and strategy evaluation.

Wellness ProgramTarget Areas

STRATEGY:Promote Safetyand WellnessWellness Program GoalsGOAL I:Reduce the proportion of employees who areoverweight or obese.GOAL II:Increase access to food and nutrition informationand healthy food choices at the workplace.GOAL III:Increase the proportion of employees who engagein exercise (leisure-time physical activity).GOAL IV:Reduce tobacco use by employees.GOAL V:Improve the mental and emotional health status ofemployees.Goals are listed in no particular order.

Funding the Wellness PlanSee Appendix C: Five-Year Wellness Budget

Measuring Success:Program EvaluationOutcome evaluation of the Wellness Plan has two facets.1. The impact on employee wellness2. The impact on county and employee finances

Facet 1: Impact onEmployee WellnessA few specific measures include: Workforce health risk profile obtained through yearly aggregatedata from individual health risk appraisals and biometricscreenings. Number of employees enrolled in the wellness program andparticipating in wellness activities. Health indicators such as aggregate BMI and self-reported tobaccouse. Satisfaction rates for the wellness program. Self-reported wellness knowledge and demonstration of healthybehaviors such as healthy items purchased from vending machines.

Facet 2: Impact on Countyand Employee FinancesA few specific measures include: Health care utilization and insurance costs. Injury rates and worker’s compensation claims. Disability costs. Overall prescription drug usage. Return on investment.

ROIReturn on Investment ROI is measured by reduced or contained: Health insurance ratesInjury ratesAbsenteeism ratesDisability costs The national average ROI for worksite wellness programs is 3 to 1. That is,for every 1 invested, 3 are saved (Wellness Council of America). It typically takes 3 to 5 years after the initial program investment to beginrealizing these savings. Worksite wellness programs that are comprehensive, supported byworkplace policies, and have participation rates exceeding 70% will yieldthe strongest ROI.

Thank You for YourSupportWe need your continued support as wepromote employee safety and wellness andsustain productive, high-performing AlleganCounty employees.

Comprehensive Worksite Wellness Plan for Allegan CountyI.Rationale for pursuing worksite wellnessA)Public health literature substantiates wellness programs.Extensive research documented in public health literature has shown thatcomprehensive worksite wellness programs make a significant contribution to employeehealth and organizational success as measured by outcomes such as:1)2)3)4)5)6)7)8)Improved employee health and quality of lifeImproved work culture and employee satisfactionImproved retention and recruitmentReduced injury ratesDecreased absenteeismReduced health care costsReduced disability costsIncreased productivityWorkplace wellness programs have the potential to positively influence social norms;establish health policies; promote healthy behaviors; improve employees’ healthknowledge and skills; help employe