HealthyLife: Wellness at IP It Pays - International Paper

HealthyLife: Wellness at IP
It Pays
Training Materials
November 2010

Meeting Agenda
• Health care costs
• Cost influences
•
• Earning the HealthyLife credit
At the end of the meeting you should leave with
an awareness that through HealthyLife you can
reduce your 2011 medical premiums
1

Health Care 2011
Current State
2

What is the amount IP pays each year for
health care expenses?
More Than $300 million
3

What is the expected increase in health
care costs for employees and IP in 2011?
$40 million
4

2011 Medical Costs
Medical Plans Premium Increase
CDH Plans 14.8%
Core PPO 17.1%
Mill PPO 15.7%
Key factors influencing increase
• High cost cases (in excess of $50,000) – increased
numbers and severity
• COBRA – increase in average cost
• Health Care Reform changes
• Medical inflation
5

What is the percentage of health care
costs attributed to avoidable behaviors
and individual choices?
70%
6

Chronic Disease Prevalence
Health Risk Factors Prevalence
Adults with high blood pressure 32%
Adults who do not engage in regular leisure time physical
activity
67%
Adults who are overweight or obese 62%
Adults who smoke 21%
All people with diabetes or pre-diabetes 27%
Source: Center for Disease Control and Prevention and American Diabetes Association
7

2010 Medical Cost History
8

HealthyLife
What Is It?
9

A Pro-Active Approach
This is a shift toward a consumer owned health
model where employees take personal
responsibility for making long-term lifestyle
changes and controlling personal health care costs
10

HealthyLife Objectives
Objectives for HealthyLife
Employees pro-actively participate in health care decisions
•All eligible employees are aware of the program and
make a conscious choice to participate or not participate
Slow down the rate of health care cost increases
•Reduced claims costs over time, especially for targeted
conditions, as a result of HealthyLife program
participation
Encourage a healthy workforce
•Keep our healthy people healthy
•Improve adherence to protocols for individuals with
chronic conditions
11

What is HealthyLife?
• A partnership between the Company and employees
•IP provides access to the programs, Educate tools, resources Reinforce and incentives
enabling employees to commit to active participation which
encourages better health
•Programs are built on best practices, experience and research
•Information and tools are at the heart of HealthyLife, so employees
can learn about the health and wellness issues most important to
them
•Employees are rewarded with financial incentives for participating
• For International Paper, investing in prevention and
wellness is the first step to managing rising health care
costs
12

HealthyLife
How Does It Work?
13

How Does It Work?
• Introduces annual wellness credit of up to $300 for
employee and up to $600 for employee and
spouse/domestic partner
• Reduces employee medical contribution
• Applies to Salaried and Hourly with Salaried Benefits employees in
the CDH and PPO plans, as well as Salaried employees in the
Savannah EPP
• HealthyLife credit will show as a credit to health care premiums on
employee’s paycheck
• Administered by RedBrick Health
14

How Does It Work?
2011
Redbrick Health Engagement
Credit All receive
credit
Action for
Engagement
Required
Each
Quarter
1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter
Complete
Health
Assessment
for Q2 credit
Amount $75/person
($25/month)
Only active
participants
receive credit
Achieve active
participation in
a wellness
program for Q3
credit
$75/person
($25/month)
Only active
participants
receive credit
Achieve active
participation in
a wellness
program for Q4
credit
$75/person
($25/month)
Only active
participants
receive credit
Achieve active
participation in
a wellness
program for
credit Q1 of
following year
$75/person
($25/month)
15

HealthyLife
Communication Plan
16

HealthyLife Branding
Branding: program name, tagline and logo
“It Pays” has opportunity for multiple meanings, i.e. financial
rewards and it pays to be healthy
17

Communication Strategy
Timing Communication
Mid-October One page in open enrollment materials
Mid-October Begin webcasts for HR
Late-October Hot News
November
November -
December
Available Now
• Web site – www.wellnessatip.com
Under Review
•Videos
Postcard reminders
IP Today stories
Facility newsletters
Employee home mailing
Spouse home mailing
Participate in business lead team meetings to
educate leadership as requested
18

Communication Strategy
Communication plan phases
Planning &
Strategy
Aug/Sept 2010 Sept - Nov 2010 Dec 2010 - June 2011 July 2011 and ongoing
� Develop and
finalize
communication
strategy
� Create program
brand and
identity approach
Announce Educate
Reinforce
� Include messaging
in open enrollment
materials
� Brief senior leaders,
HR, Managers and
Supervisors
� Conduct both broad
and targeted
announcement
campaign
� Provide detailed
information about the
HealthyLife program and
general Wellness at IP via
multiple media and
channels and from various
sources
� Continue and expand the
broad and targeted
communication
� Add new and different
methods
Measure and apply
learnings
March 2011 and ongoing
� Use input from various
feedback mechanisms to
adjust messages and
techniques as needed
19

HealthyLife
Summary
20

Let’s Review
• Participation in HealthyLife is completely voluntary and
confidential – behavior based, not results based
• Program open to U.S. employees with Educate salaried benefits Reinforce
• Employees and spouses/domestic partners are eligible to
participate in HealthyLife, independent of each other
• Active participants eligible for a monthly credit of $25, up to
$300 per year per person or $600 per family
• Employee communications started with Annual Enrollment
mailing
• All employees receive credit in Q1
• HealthyLife begins January 2011
21