Honeywell

Narrative Description of Program

Honeywell's Life $avers Health Incentive Program focuses on risk reduction of health conditions which generate the company's greatest healthcare costs. The program is designed to recognize and reward employees who practice healthy behaviors or make changes to improve health. Employees who successfully complete the four-part program receive a $200 cash award at the end of the year.

Life $avers was piloted in 1991 to 1300 full-time and part-time professional, office and technical employees at three Minneapolis locations. In 1992 the program expanded to 8250 employees at seven locations in Minneapolis and Florida, with a 350 employee site in Connecticut joining in 1994. Most of these locations are production sites for assembly of electronic controls.

After analyzing Honeywell's health care utilization data, previous health risk assessment data, and national statistics, the Life $avers program was designed to target diseases and practices that are, in part, responsible for today's high cost of health care--cardiovascular disease, cancers, and unnecessary utilization of health care. These areas frequently involve health situations that individuals can control through changes in lifestyle, risk factor reduction, and acquiring skills to become effective health care consumers. A significant opportunity exists to impact health and health care costs through education, prevention, early detection, and necessary and appropriate care.

A recent claims analysis showed that preventable illnesses and lack of self-care comprised 43% of Honeywell's total covered group medical expenses in Minneapolis. Life $avers targets these specific areas for consumer health education. For example, all participants are required to attend Take Care of Yourself, a program stressing appropriate preventive screenings and self-care for minor illnesses/injuries, and Health Care Consumerism, which teaches partnering with physicians and how to interact with the health care system.

The goals of the Life $avers program are to:

• Improve health and reduce risk factors
• Modify expectations and behaviors concerning health care utilization
• Advance self-care and consumer skills
• Increase medical case management opportunities
• Reduce health care costs
• Create goodwill and improve employee morale

There are four components to the Life $avers program including:

Part I . Cardiovascular Risk Factor Screening - onsite cholesterol, glucose, height/weight for bodymass index (BMI), blood pressure, and carbon monoxide testing for smoking.

Life $avers is a health incentive program focused on risk reduction of Honeywell's 10 leading conditions generating health care claims. It is designed to recognize and reward employees who practice healthy behaviors or make changes to improve health. Employees who successfully complete the 4-part program receive a $200 cash incentive at the end of the year.

Life $avers was piloted in 1991 to 1300 full-time and part-time employees at 3 locations. The employees at these locations are predominantly professional, office, and technical staff. In 1992, the program was expanded to 8250 employees at 7 locations in Minneapolis and Florida, with a 350 employee site in Connecticut joining in 1994. Some of these divisions are manufacturing sites. For the 3000 employees supported by Honeywell's Corporate Offices health promotion program in Minneapolis, 1 full-time Life $avers Administrator, 2 part-time health educators, and 1-2 interns administer Life $avers. The program is company funded.

Honeywell's health care utilization data, data gathered from previous health risk assessments and national statistics were reviewed to identify those health problems that would be targeted for Life $avers intervention. They were analyzed in terms of frequency, probability, preventability, and financial impact. Life $avers addresses diseases and practices that are, in part, responsible for today's high cost of health care -- cardiovascular disease, cancers and unnecessary utilization of health care. These areas frequently involve health situations that individuals can control through changes in lifestyle, by making a commitment to reducing risk factors (smoking, cholesterol, blood pressure, obesity, and inactivity) and acquiring the skills to be an effective health care consumer. This suggests that a significant opportunity exists to impact both health and costs through education, prevention, early detection and appropriate care.

A recent claims analysis showed that preventable illnesses and lack of self care comprised 43% of total covered group medical expenses at Honeywell. This information is being used to specifically target health education programs. For example, all participants are required to attend Take Care of Yourself, a program stressing appropriate preventive screenings, good health practices and learning to take care of minor illnesses and injuries at home. Another core class called Health Care Consumerism provides participants with skills (i.e. partnering with your physician, managing medications safely and effectively, advance directives, living wills, etc.) enabling them to interact more effectively with the health care system.

Life $avers Program Goals

• Improve health
• Reduce risk factors
• Modify expectations and behaviors concerning health care utilization
• Advance self-care and consumer skills
• Increase medical case management consultations for complex cases - both total volume and earlier involvement in the process
• Reduce healthcare costs
• Create good will and improve employee morale

Program Components

Cardiovascular Risk Factor Screening

On-site cholesterol, glucose, height/weight (BMI - Body Mass Index), blood pressure (BP), and carbon monoxide (CO) testing for smoking

Age and Sex Appropriate Cancer Screening 

Breast, cervical and colon cancer screening is completed through participants' primary health care provider

Health Education

Mandatory classes emphasize risk reduction, self-care and wise health care consumerism

Managing Health Care

Requires consultation with a nurse case manager for employees faced with a significant medical event (i. e. surgery, hospitalization, pregnancy, chronic illness)

The testing parameters and preventive screening guidelines are based on national standards. Participants complete a health history questionnaire and the cardiovascular screening onsite. For those unable to meet the testing parameters, alternative methods of qualification such as documentation of physician contact exist. The onsite screening is followed by a consultation with a health professional to review the results and set goals for risk reduction. The health education classes are designed to provide information and opportunity to practice a skill that can be transferred into a health enhancing practice. A person who successfully completes the 4 parts of the program qualifies for the cash incentive award.

• Honeywell - Life$avers

The following assessment of program strengths and weaknesses has been abstracted from reviews by the Task Force on Program Selection of The Health Project. Where weaknesses are postulated, it must be taken into account that the review Task Force is very critical, that no programs are perfect, that the Award Winning programs have been selected from over 300 candidate programs and represent the very best, that the materials reviewed may have been incomplete, that suggested deficiencies may have resulted from incomplete understanding of the program by the reviewers or that any problems may have been corrected since the time of review.

Evaluation

"Life $avers", is Honeywell Inc's health incentive program for 10 leading risk reduction conditions for 8,200 participants at seven locations. Of 1,391 employees screened in for modifiable risk factors, 476 or 34 percent failed at least one screen. By year-end, 192 had reduced one or more risk factors. Absenteeism dropped 17 percent in 1992 and 32 percent in 1994.

Well-targeted at ten leading cost categories. Comprehensive and integrated program with clear goals and strategies. Good program evaluation. Low cost. Addresses demand reduction for health care. Cash incentive of $200 used effectively. Adequate risk reduction evaluation. Additional evaluation studies are in progress, which should be exciting. There is a good initial claims data analysis suggesting 43 percent savings from preventable illnesses and self-care. There is a measured affect on absenteeism and on health costs as well as health risks. Claims analyses were performed independently by William M. Mercer. "Lack of self-care" is seen as the highest cost area and is a long-term focus.

Claims analysis is still pending and only limited data are available. The actual cost of the program is actually $27 plus the $200 incentive, which means that most of the cost is due to the incentive and not the program. The emphasis is on physical health results rather than integrated psycho-social or environmental components. No figures or discussion on participation in the wellness program. Lack of a concurrent control group hampered conclusions. The best documented result is absenteeism, cost-savings as a results of risk reduction data are not yet available. There were no employee evaluations of the programs presented.