Health Management

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Health Management Wellness A Global
Perspective
Carl Redondo Marion May
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Welcome to Aon Hewitt Webinar

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Welcome and Introductions
Carl Redondo Global Benefits Consulting Leader,
UK 15 years with Aon Hewitt in London, Seoul,
Hong Kong and Shanghai Helps multinationals and
big locals with employee benefits issues around
the World
Marion May Senior Global Benefits Consultant,
London 5 years with Aon Hewitts global benefits
consulting practice Develops and implements
strategic health and wellbeing solutions for
clients
Joining via Webex Approximately 150 clients from
around Europe representing major multinationals
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Agenda
1 Introduction The Coming Crisis in Global Health Carl Redondo
2 Global Healthcare Trends Aon Hewitt Survey Carl Redondo
3 Wellness TrendsMarion May
4 Absence Management Carl Redondo
5 Q A
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The Coming Crisis in Global Health
Delivery of health insurance benefits globally is
under major financial pressure The reasons are
as follows
1. Populations are living longer putting extreme financial pressure on social care
2. Medical Cost Inflation (MCI) is continuing to rise rapidly in most countries
3. Lifestyle risk factors are growing globallythe global burden of non-communicable disease is now greater than that of communicable disease
4. Workforces are aging in most countries (12 years every 5 years)
5. Major competitive pressure to expand scope of private health insurance benefits
6. Employers are coming under pressure to provide retirees with access to group health insurance in many countries
Costs of health insurance is increasing by 3 -
5 above GDP in most markets around the World
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Medical Trend Rates and Non-Communicable Diseases
Increases in year on year costs for members of EU
Measure 2013 2014
Inflation 2.0 2.0
Real GDP 0.4 1.6
Medical costs 6.2 5.9
Source European Commission Autumn 2013 Economic
Forecast, Aon Hewitt 2013/4 Global Medical Trend
Rate Survey
Key causes of medical claims around the World
  Asia Pacific Asia Pacific Europe Europe Latin America Latin America Middle East/Africa Middle East/Africa
1 Respiratory 47 Cancer 60 Cancer 68 Respiratory 67
2 Gastrointestinal 47 Mental Health 45 Respiratory 58 Diabetes 56
3 Cancer 47 Diabetes 40 Diabetes 53 Cancer 33
4 Infectious Diseases 33 Gastrointestinal 35 Prescription Drugs 42 Gynaecological 33
5 Gynaecological 27 Gynaecological 25 Gastrointestinal 42 Accident 33
Source Aon Hewitt 2013/4 Global Medical Trend
Rate Survey
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Aon Hewitt Healthcare Study
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2011/12 Health Care Survey Participant Profile

• A total of 1,028 individuals participated in Aon
  Hewitts 2011/12 Global Health Care Survey. The
  participant profile by overall worldwide employee
  size is as follows

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Health Strategy Top 5 Desired Outcomes
Participants asked to select top 3 desired
outcomes
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Health Strategy Top 5 Challenges
Participants asked to select top 3 biggest
challenges
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Health Strategy Top 5 Priority Tactics
All are wellness related activities
Participants asked to select top 3 tactics to
achieve strategy
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Reduce Expenses Absence Management
Participants asked the metrics used to measure
the impact of absence
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Improve Workforce Health Strategy Components
Participants asked what the components are of
workforce health strategy
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Improve Workforce Health Key Tactics
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Improve Workforce Health Future Trends
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Total Health Management Integrating Wellness
and Absence
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Wellness trends
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Trends in Wellness
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What do Recent Surveys Tell Us?
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Global Recognition of Employers Role

• The wealth of business depends on the health of
  workers.

Dr. Maria Neira, Director, Department of Public
Health and Environment, The World Health
Organisation
Definition of a Healthy Workplace A healthy
workplace is one in which workers and managers
collaborate to use a continual improvement
process to protect and promote the health, safety
and well-being of all workers and the
sustainability of the workplace by considering
the following, based on identified needs
health and safety concerns in the physical work
environment health, safety and well-being
concerns in the psychosocial work environment
including organization of work and workplace
culture personal health resources in the
workplace and ways of participating in the
community to improve the health of workers,
their families and other members of the
community.
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The Growing Role of the Employer

• Employers say they share responsibility for their
  employees health

0 see this as only a government responsibility
Source Hewitts 2010 Global Health Promotion
Survey
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What are Employers Doing?

• Percentages of Companies with Programmes to
  Combat Non-Communicable Diseases

2013 2014
Incentives for Exercise 21 35
Physical Health 23 42
Stress Reduction 14 32
Anti Smoking 37 74
Anti Alcohol 42 61
Source The Workplace Wellness Alliance.
Delivering on Health and Productivity (2011) WEF
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What are Employers Doing?
Programmes/Services Offered in 2012 Offered in 2013 Absolute Increase
Biometric screening 63 71 8
Physical activity challenges 47 53 6
Telephone health improvement coaching 46 52 6
Nutrition programmes 31 37 6
Stress reduction initiatives 29 35 6
Source Aon Hewitt 2013 Health Care Survey
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Goals - Why do Wellness?
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What might a Global Wellness Programme look like?
Generally, significant increase in interest among
global companies and an increasing number are
moving to action
3 Categories of Employers
Global EAP/Challenge
Lifestyle Focus
Health and Wellbeing Model

• A starting point
• Relatively low cost and low risk
• Reasonably mature marketplace
• Some programme expansion possible through
  additional services
• Solution driven by corporate adopted locally

• Primary focus is lifestyle behaviour modification
  (common smoking cessation, nutrition, sleep, and
  exercise)
• One-stop shop solutions are emerging - simplified
  administration
• Solution driven by corporate adopted locally

• Broader philosophical view of health and
  wellbeing
• Core components driven by corporate
• Core programmes localised based on in country
  needs and risks
• Significant emphasis on local programme expansion
  beyond the core

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Wellness ROI
Improved Outcomes
Health metrics
Building Engagement
Engagement metrics
ROI
Productivity metrics
Cost Reduction (indirect direct)
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Absence Management
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Total Health Solution UK A Case Study
An outsourced absence recording and monitoring
service, identifying absences for early
intervention, providing support and advice to
employees
A specialist psychologist led service for stress
related absences, providing initial assessment
and treatment
A specialist absence case management service
where the referred absence is reviewed and
actions are recommended to enable the employee to
return to work at the earliest opportunity
A service providing clinical advice and support
to employers for employees with health problems
that are impacting on work performance
24/7/365 confidential helpline offering lifestyle
support and advice to employees. Services include
short term counselling options and lifestyle
support services such as debt management, legal
information and child/elder care services
A specialist service providing physiotherapy
rehabilitation treatments
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What does Absence Management Deliver ?

• Certainly
• Insight into health risks
• Reliable absence data
• Lower absence rates
• Lower insurance premiums
• Return on investment
• Integrated view of health
• Reference point for wellness/preventative
  campaigns
• Potentially
• Information about reasons for absence
• Improved employee engagement
• Healthier behaviours leading to employee
  wellbeing both physically and mentally

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Conclusions
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Why Focus on Health Management ?

• Good for Employees

• Good for the Organisation

• Lower retention and recruitment costs
• Lower temp agency costs
• Better Health Safety record
• Good governance

• Lower sickness absence
• Lower sick pay
• Lower long-term disability claims
• Lower turnover

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How Aon can Help?

• Wellness
• Audit and strategy development
• Implementation
• Communication
• Monitoring
• Absence management
• Audit and strategy development
• Implementation
• Communication
• Monitoring

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QAs