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									Challenges Today’s Corporations Face
    Employers Care About Employee Health
In this session

 Challenges Today’s Corporations Face
 –Landscape today
 –Pressures on Corporate America
 –Corporate Response
 –Creating Workplace Wellness

Landscape Today:
Mounting Costs and Concern

Landscape Today:
Improve Health Costs

                               “At Dow, our analysis
                            shows that prevention can
                              improve both our direct
                            and indirect health-related
                            costs. Our profit potential is
                             inextricably linked to the
                                   capability and
                                performance of our
       Andrew N. Liveris,
       President and CEO
            The Dow
      Chemical Company
Pressures on Corporate America

 • 60% of Business Roundtable CEOs cited healthcare costs as their
   number one cost pressure for the second year in a row
     •In 2000, employee healthcare costs represented 40% of pretax profits
 • Productivity losses related to health problems cost U.S. employers an
   estimated $225.8 billion annually
 • Almost half of 1,400 chief financial officers surveyed said they expected
   healthcare costs to account for the biggest increase in the costs of doing
   business in the next 12 months
     •Starbucks will spend more on health insurance for its employees this year than
     on raw materials needed to brew its coffee

 • Obesity costs American companies $12.7 billion each year
     •An overweight employee annually costs their employer an additional
     $450 to $2,500 in medical expenses and absences.
Pressures on Corporate America:
Competition In a Global Economy

                                  “The fact is the soaring cost of
                                health care in America cannot be
                                 sustained over the long term by
                                 any business that offers health
                                    benefits to its employees.
                                   And every day that we do not
                                    work together to solve this
                                    challenge is a day that our
                                      country becomes less
                                     competitive in the global
                 Lee Scott                   economy.”
            President and CEO

Pressures on Corporate America

 • Americans now work 164 more hours per year than 20 years ago.
 • People are becoming less active due to advances in automated
   transportation, technology at home and more passive life pursuits.
 • The average annual healthcare cost per person in the U.S. exceeds
 • 33% of adults under 65 with household incomes of less than $75,000
   report not having enough money to pay for medical costs
 It does not have to be this way
 • Preventable illnesses make up approximately 70% of the entire burden of
   illness and associated costs in the U.S.
 • At least 25% of healthcare costs incurred by working adults are
   attributed to modifiable health risks such as diet and exercise.
Corporate Response:
Creating Workplace Wellness

 The following chart represents trends in corporate response to the
                      rising cost of healthcare:
                                                        Consumer Driven
 Cost - Shifting               Public Policy               Health Plans            Wellness Programs
• Employees pay higher      • Lobby lawmakers to      • High-deductible medical   • 33% of companies said that
  deductibles, premiums       impact legislation to     plan coupled with an        they are placing a greater
  and co-payment fees         control healthcare        employer-funded             emphasis on improving
                              costs                     reimbursement account       employee health through
• 62% of large employers
                                                        for each employee           wellness programs and
  said they would keep
                                                                                    33% are considering it.
  costs down by shifting                              • Intended to encourage
  increases to employees                                more cost-conscious       • Incentives
                                                        personal healthcare
• Doesn’t contain costs                                                           • Onsite Screenings
  and alienates employees
                                                                                  • Employee Assistance
  and unions                                          • Account for about 2% of
                                                        all healthcare coverage
                                                        in the U.S.               • Online, interactive tools
                                                                                  • Communications i.e.
                                                                                  • Healthy vending machine
Corporate Response:
Makes good business sense

                           “We believe that programs
                          that help reduce health risks
                          can yield valuable benefits.
                         It is clear that encouraging a
                         healthy lifestyle makes good
                                  business sense.”

         John Rowe, MD
           Aetna, Inc.

Case for Workplace Wellness Today

 • On average, companies report a $3.50-to-$1 savings-to-cost-ratio in
   reduced absenteeism and healthcare costs

 • Reducing just one health risk increases a person’s productivity on the
   job by 9% and reduces absenteeism by 2%

 • An organization saves approximately $350 per employee per year by
   keeping healthy employees at low risk

 • 79% of employees think companies should encourage healthy

 • 80% of executives believe that corporations have a responsibility to
   promote wellness among employees

 • Number of working Americans who get “no exercise” is 2 times
   higher among those who have no access to workplace fitness
Creating Workplace Wellness
Can’t do it alone

                             “Like most corporations,
                           Xerox is too familiar with the
                            specter of ever-increasing
                               health care costs. But
                            companies can’t solve the
                               problem alone. … We
                                  believe continued
                            education… will ultimately
                          translate to lower costs for us
                             all – and better health for
       Anne M Mulcahy               our people.”
      Chairman and CEO
      Xerox Corporation
Inactivity Is The Problem.

So What’s The Solution?
The Start! movement is here to motivate
  and encourage all Americans to take
 up walking and other healthy habits as
    part of their daily routine all year
   around, and to live longer, stronger
            heart-healthy lives.
The Start! Movement

  The Movement:                                   Start!
       The Goals:                 Increase Physical Activity to Prevent
                                       Heart Disease and Stroke
                                             in Americans

     Start! has the tools to help employers make employee wellness a priority.

                           Start! Heart Walk   Start! Fit -Friendly   MySt art! Online
                                                 Companies             Tracking Tool

  Employer Tools:

                             CEO Events                               St art! Walking at
                                                St art! Walking           Work Day

                           MyStart! Online
                       •    MyStart! Online is a online fitness and nutrition program
                            that allows your employees to track their daily activ ities
                             – Track physical activ ity such as walking, biking, etc.
                             – Track daily caloric intake
                             – Daily tips and weekly articles
MySt art! Online
                             – Recipes
 Tracking Tool
                             – Monthly newsletters

                           Start! Walking Program
                   •       Through our Start! Walking Program, your company can setup
                           “walking routes” around the workplace.
                            – Employees can take breaks alone or with walking buddies to
                               walk the route.
                            – Different routes for different needs
St art! Walking                  • Outdoor, indoor, physically challenging
                            – Tracking tools for your employees
                            – Celebration ev ents, and Lifestyle Change Awards to help your
                               employees stay motiv ated
                        Start! Heart Walk
                    •       Start! Heart Walk is the American Heart Association’s
                            signature fundraiser currently in ov er 450 cities nationwide.
                    •       Employers can create company teams that walk
                            at the ev ent and raise funds for research.
                              – Surv eys show that ov er 90 percent of employees
Start! Heart Walk                feel proud of companies that support an important
                                 outside cause
                              – Supporting the Heart Walk can help enhance
                                 community relations
                              – Giv ing back to the community can also boost
                                 productivity, employee morale, job satisfaction
                                 and loyalty

                    Start! CEO Events
                        •    Start! CEO Ev ents are local ev ents that bring leadership
                             of local employers together in order to show support
                             of the Start! mov ement.
                              – Leaders can learn more about the Start! mov ement
    CEO Events                    and all the ways to use it for the company.
                              – Leaders can learn how to become local sponsors
                                  of the mov ement and the local Start! Heart Walk.
                     Start! Walking at Work Day – April 25, 2007
St art! Walking at   Join others across the nation as they wear their sneakers to work on April
    Work Day         25, 2007 and pledge to start a healthier lifestyle as part of this annual
                     ev ent.

                     Bringing start! Walking At Work Day to your workplace is easy. All you
                     have to do is:

                     • Get your senior leaders involved. Hav ing key leaders participate sends
                     a clear signal to staff that your organization supports start!.
                     • Save the date. Reserv e time on your senior leaders’ calendars on April
                     25. Did you know that you could gain two hours of life expectancy for
                     ev ery hour of regular, v igorous exercise? Hosting your walk or rally at 2:41
                     highlights that fact and prov ides a much needed afternoon break!
                     • Spread the word. Promote your start! Walking At Work Day using
                     posters in the workplace, contests and interactiv e activ ities. Our Start!
                     Walking At Work Day packet will giv e you the tools you need. Contact
                     your local American Heart Association representativ e on how to get your
                              Start! Fit-Friendly Companies Recognition
    Start! Fit -Friendly

•    The American Heart Association is recognizing employers who champion the
     health of their employees and work to create a culture of physical activ ity and
     health in the workplace.
•    Companies who are recognized receiv e immediate benefits such as:
       –    Consult ation on CPR/AED (aut omat ed external defibrillator) programs
       –    Recognit ion on t he American Heart Associat ion’s program Web sit e
       –    Local-level recognit ion by t he American Heart Associat ion at local events and in
            communication materials support ing the recognition program
       –    The right t o use t he program’s annual recognit ion seal for int ernal communications to
            employees (e.g., int ranet company newsletters, break room post ers) and ext ernal
            communications related specifically t o recruit ment (e.g., employment section of t he
            company Web sit e, recruit ing tools for job fairs)
       –    An official recognition letter sent by t he American Heart Association
       –    A recognit ion plaque t o display at t he worksite
To learn more about the Start! movement,
             visit the Web site at
Get help from our local representatives by
going to and using
   our zip code finder to locate the office
                closest to you.

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