Health Risk Reduction and Cost Reduction Program (2002)

Critique

The following are verbatim remarks made by the reviewers:

• Temporary return to work (TRW) program which has been successful
• Huge savings – perhaps over $1 billion
• Uses Cigna case management and disease management
• Smoking and Fitness lifestyle special programs

• Emphasis on TRW (disability) is unusual. Evidence of decrease in absenteeism and TWW utilization increases is significant
• Extensive documentation of cost savings
• Impressive 6 year cost savings of approximately $579M

• Tying the program into the corporate mission is an excellent strategy

• This program for 200,000 employees is integrated across the organization (Safety, Risk Management, Health and Wellness, Disability, HR and Operations) and emphasizes human capital management and productivity. Essentially the goal is to increase operating income by increasing productivity. Their management of absence has decreased absence claims by 28%. The temporary return to work policy has greatly influenced lost time.
• The scope of the program includes both physical and psychological programs and there is close integration with the health plan vendors. Demand Management and Disease Management are included in the scope of work as well as Utilization Management and Catastrophic Case Management.
• Savings are notable in the area of benefit costs per employee and absence.
• Health and Wellness Centers are available at several locations and if there is no on-site access, a Fitness Center Network location is made available. Fitness Participants’ claims costs are $200/yr. Less than non-participants.

• Company commitment
• Disability claims trends
• Broad program

• Safety is well developed. Reviewer understands and appreciates FED EX’s program and commitment to health from the various presentations given about the program. Resource commitment to HCM seems to be high.

• Integration of health promotion with other company depts.
• Safety and health and it’s link to productivity.