To truly change our country's health, we need to embed a solution into our health insurance.
Founded in 1962, BeniComp developed an innovative, patent-pending wellness product called BeniComp Advantage to change the health insurance industry. While the rest of the country continued to offer "sick insurance", BeniComp wanted something different. BeniComp wanted to create the future of health insurance as a health solution. The concept was simple:
- Screen participants regularly to detect health risks at an early stage
- Educate and engage participants with health risks
- Reward participants for achieving healthy lifestyle biomarkers such as BMI, cholesterol, nicotine, blood sugar, and blood pressure
We average over 96% participation in our supplemental wellness insurance programs.
The industry’s answer is to offer supplemental wellness programs. Initially designed to supply employees with awareness, education, and lifestyle change, these add-ons have evolved into an overly saturated market of wearables, apps, and fun programs without, in most cases, accomplishing the original goals. In a recent study by MetLife, nearly 75% of all employers offer a wellness program.1 Even though the programs are now mainstream, only 24% of employees actually participate.2 Worse yet, those who do participate are primarily employees who have already adopted healthy lifestyles, causing unnecessary employer expenses without providing true population health management. The remaining, unengaged participants are those with greater health risks resulting in little to no improvement in employee health or reduction in healthcare claims for the employer.
Wellness is unintentionally provided to the healthy population
The intentions of many supplemental wellness programs are great, and some of the services are outstanding; however, the dark secret of the wellness world is that the services are provided to the low-risk population and not those who have the most impending risk. The solution to engaging the entire population is to “stop treating wellness as an add-on to your business [and] start making it the core of everything you do,”3 say researchers at Oliver Wyman, a subsidiary of one of the largest global insurance consulting firms, Marsh & McLennan.
To truly allow supplemental wellness programs to succeed and engage the majority of the group's population, employers need to build it into the design of their health plan. One company, BeniComp, created a patent-pending, supplemental health insurance policy called BeniComp Advantage. Their product not only makes health rewards outcome-based, but moves the financial incentives to the deductible. Outcome-based incentives (OBI) are monetary rewards tied to lifestyle biomarkers such as BMI, cholesterol, nicotine, blood sugar, and blood pressure. Deductible-OBIs are rewarded using the health plan deductible, result in over 95% participation, and decrease claims because employees are held accountable for their results. Similar to the good-driver car insurance discount, all employees are given the same supplemental health insurance plan, and have the ability to earn decreased deductibles by achieving health goals.
Deductible OBIs are the Most Cost-Effective Incentives
Deductible OBIs are the most cost-effective, engaging way for an employer to offer wellness incentives to employees. With traditional cash-equivalent or premium incentives, low-risk employees who are expected to have minimal claims end up costing the employer as much as high-risk employees. With deductible incentives, employers are able to fairly offer thousands of dollars in incentives without draining cash flow. More importantly, employees are empowered with the ability to control their plan and earn substantially more affordable health insurance with lower deductibles and monthly premiums. The entire population is engaged, especially the high-risk employees who receive huge financial incentives to make healthy changes. Combining advanced wellness programs with deductible OBIs allows companies to achieve over 95% participation and provide genuine population health management.
1. “Benefits Breakthrough: How Employees and Their Employers Are Navigating an Evolving Environment.” Insights from MetLife’s 12th Annual U.S. Employee Benefit Trends Study. MetLife, Inc. 2014. Print. 17 Nov. 2015. [https://benefittrends.metlife.com/assets/downloads/benefits-breakthrough-summaries-2014.pdf __title__ Benefits Breakthrough: How Employees and Their Employers Are Navigating an Evolving Environment].
2. O'Boyle, Ed, and Jim Harter. "Why Your Workplace Wellness Program Isn't Working." Gallup.com. N.p., 13 May 2014. Web. 17 Nov. 2015. <http://www.gallup.com/businessjournal/168995/why-workplace-wellness-program-isn-working.aspx [http://www.gallup.com/businessjournal/168995/why-workplace-wellness-program-isn-working.aspx __title__ Why Your Workplace Wellness Program Isn't Working]>.
3. Coyle, John, Daniel Lyons, and Elizabeth Southerlan. The Business Case for Integrated Wellness. New York: Oliver Wyman, 2015. PDF.