While the full impact of recently passed health care reform legislation won't be felt by businesses for several years, the current high and growing cost of health care insurance isn't escaping anyone's notice. A June survey by the Council of Insurance Agents & Brokers showed that some three-quarters of its member respondents said premium increases for small accounts (50 or fewer employees) had grown by 11% or higher. For large accounts (501 employees or more) the increases were slightly less dramatic. Nevertheless, 31% reported increases in that range. Another 35% reported increases of 6% to 10%.

"We have a big concern for health care costs," says Steve Ewing, Herr Foods' benefits manager. That concern is reflected in the snack food maker's current 11-page strategic document for attacking health care costs, a plan it puts together annually with its health care partners. "Trying to bend that [health care] cost curve is a big influence on us annually."

While not explicitly stated, one idea that permeates Herr Foods' strategic document is that a healthy employee is a less-costly employee. That thought, at least in part, is driving manufacturers such as Herr Foods to implement health care plans that actively promote a healthy lifestyle.

"We're trying to transition from a sick plan to a health plan," explains Ewing. The manufacturer, whose approximately 1,500 employees straddle eight states, recently introduced biometric testing (screening for blood pressure, cholesterol and glucose) and health-risk assessments (HRA) to its employee population. Such efforts serve multiple purposes. One is the idea that if employees are made aware of their health risks, they will make choices to help reduce those risks. Secondly, the data can help Herr Foods determine the kinds of wellness programming to implement to improve the health of its employee population. Ewing points out that Herr Foods sees only the aggregate data of its employee population. CoreSource, its third-party health care administrator, manages the data.

"We want [employees] to live a longer, healthier life and, in return to us, our health care costs are going to be under control. We should be able to bend that curve by preventing costly health care expense down the road. So that's the transition we are trying to go through," Ewing says.

For Herr Foods employees, participation in the biometric testing and HRA was voluntary, but the company offered $5 per week reductions to employee health care contribution to those workers who went through the process. About 65% of employees participated in the effort, Ewing says.

"When you think about health care expenses, 20% of your employees cause 80% of your claims, and 50% of that 80% is directly related to lifestyle," Ewing says. "That's why we feel it's important for people to assess where they are at." Additional wellness programming includes a voluntary diabetes management program for invited employees. Herr Foods waives employees' copays on diabetes medication and supplies for participants who attend scheduled meetings with a pharmacist coach.

Ralco Nutrition, too, has been growing its efforts to improve the health of its employee population. Employees at the 110-person company are required to have an annual physical to be eligible for the company's health insurance. Like Herr Foods, the manufacturer introduced health-risk assessments to its populace. Fitness challenges, such as a walking program, give employees opportunities to earn financial contributions to their health savings accounts (HSA). More recently Ralco has embraced a more comprehensive approach to improving worker health with assistance from health-risk management company Smart HealthSense. "Becoming healthier is good for everyone," says Shelly Gniffke, Ralco Nutrition's human resources manager.

View article on one page