Imagine if your auto insurance company decided to ignore your accident history and speeding tickets, and instead just charged everyone a higher fixed amount for their coverage. How long could that go on? How long until the good drivers say “enough is enough” when their rate keeps going up because of you
Of course, your health is different from your driving record. Unlike driving habits, health risks are not controlled as easily. Or they might not be at risk at all given the full set of circumstances. Well-designed incentive programs may offer a reward if you achieve an “optimal” goal so that you don’t have to jump through numerous hoops like wearing a pedometer, having coaching sessions or logging your food intake. On the other hand, those who don’t achieve all of the goals may need tools and resources like these to help them improve. Compliant incentive plans will give you other ways to qualify for the full reward, such as some amount of incremental improvement. With medical benefits being the number 2 or 3 expense at the majority of U.S. companies, is that really too much to ask people to do?
Bravo has implemented hundreds of outcomes-based wellness incentive programs. Over the years we've seen some unique and interesting data surface from our groups. In an analysis of 45 accounts over three years with an outcomes-based program, incenting for meeting blood pressure, cholesterol, tobacco use
The top 10 accounts with the greatest health improvement had more aggressive health goals (such as a BMI of <27.5 versus 30) and much greater financial incentives tied to the plan (an average of $1,100 versus $500) than the bottom 10 accounts with the least health improvement.
The top 10 accounts also experienced:
- A 38% decrease in participants with LDL greater than 160
- A 52.3% decrease in participants with blood pressure levels >140/90
- A 7.7% decrease in tobacco use
- Obesity levels improved only in cases where at least $50 per month was tied to the category, and the full reward was offered for modest improvements (such as 5% weight loss in a 12 month period). The percentage of the cohort population with a BMI over 30 decreased by 3% respectively.
Measures that were gathered and reported as a health risk but were not associated with an incentive did not improve. For example, the number of individuals with a fasting glucose score of 126 or higher actually increased by 4.7%. In other words, we told people that they might lose a leg, go blind or have to wear an insulin pump but, when this was just a risk of a future consequence versus a penalty in next week’s paycheck, they didn’t take action nearly as fast or as effectively.
I’ve met with organizations who say “we’re very paternal; we want to gently introduce this to employees and not increase the dollars or health goals until we’ve seen more people pass.” I’ve also met with organizations who say “we’re very paternal; we have to teach people that their health is their responsibility and equip them to make better choices.”
As a father of four, I compare it to teaching my kids to ride a bike and my decision of when to let go. I love my children and would be devastated if they suffered an injury, but realize that if I never let go they would never ride without my handholding. Be paternal. Teach, equip, empower, trust and then let go. Having a BMI goal of 27 instead of 32 and incenting with $100 per month versus $50 per year may feel aggressive - and people may complain - but the results speak for themselves and the complaints stop as soon as people realize how much better they feel after you provided them with an avenue to see their doctor and improve their high-risk factors.
The evidence is exciting and encouraging. An incentive alone is not a wellness program. I’m taking it for granted that employers who head down this path will appreciate the need for a positive culture, leadership support and encouragement, health education and access to tools and resources to help people succeed. These have long been the staples of a reasonably designed wellness program but these programs have also struggled to show any positive results. Adding the “good driver discount” and making it reasonable to achieve, and financially meaningful to attain, is proving to be the missing ingredient in many strategies.