Toyal American Demographics

Engagement, Wellness and the
Search for Health Care Solutions
CruzBlanca
Santiago, Chile
November 16, 2011
A Small Business Success Story
in Controlling Health Care Cost
Bud Loprest
President
Toyal America Demographics
• Manufacturer of aluminum
powder and paste
• Located in Lockport, Illinois
• 92 employees
• Union work environment
• Predominantly male
workforce
• 24/7 operation
• 12 hour shifts
• Shift rotate every two weeks
3
2nd Tier Automotive Supplier
Vehicle: 2011 MY Jeep Grand Cherokee
Painted by: PPG
Color name: “White Gold”
Grade used: TCR 3015A
4
Prime Subcontractor for Ballistic Missile Propellant
5
Battlefield and Tactical Weapons
6
What was happening at Toyal
America?
7
Medical Insurance: $ (000’s)
$1,800.00
$1,534.00
$1,600.00
$1,481.00 $1,515.00
$1,365.00
$1,400.00
$1,200.00
$1,000.00
$955.00
$898.00
$800.00
No Change in Employment Level
Medical Insurance
$600.00
$635.00
$400.00
$200.00
$0.00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
8
The Medical “Trend” of Health Care Expenses
2,383,882
2,270,000
2,061,141
12%
2,070,000
8%
1,870,000
1,912,653
1,670,000
6%
Toyal
Actual
1,515,000
1,470,000
1,270,000
2006
2007
2008
2009
2010
9
The journey and the search for new solutions.
• A 235% increase in health care spending.
• We could no longer afford to ignore the problem
• The result: We could do what everyone else was
doing.
NOTHING.
10
Toyal’s First Reaction
What are the traditional options?
– Continue focusing on plan design
– Shift cost to employee’s via plan design
– Cut benefits
– These solutions weren’t very satisfying
– Nothing original or effective
11
Leadership Discussion Inside Toyal
• Benefit cuts and cost shifting doesn’t solve the
problem
• Health Care costs continue to rise and demand
remains unchecked
• If we adopted the traditional solutions we would still
be having the same discussion if not the next year
certainly the year after
• How could we attack the root cause of rising medical
expenses?
12
Our 2008 Solutions - Phase 1
Find ways to control the current spending under the
plan we were providing
– Assist our employees to become educated
consumers of healthcare products and services
– Provide a financial incentive to be a better
consumer
– Health Care Savings Account (HAS)/Consumer
Driven Health Plan started in 2008
13
Phase 2 – Attack the Real Root Cause
Lifestyle and behavioral related health conditions
• Healthcare spending is a ‘demand’ driven cost,
not a fixed cost
• If we can change the demand for care, we can
manage the cost
• What was needed was a fresh approach even if
some element of uncertainty was involved
14
Toyal America Objective
Lower health insurance claims
2008 - Plan design
 Self-Insured
 Consumer Driven Health Plan
 Expanded wellness coverage
 Health Savings Account (HSA)
2009 - Behavioral modification and Lifestyle changes
 Promote a culture of health
 Establish baseline measurements and risk assessment
 Provide a fun program with resources and tools to
support & motivate change
 Provide distraction from daily economic problems
 Involve leadership to maximize engagement
2010 - Build on the success
15
Toyal meets Abbott
• Fresh idea
• Proven system
• Management commitment and employee
engagement combined into one activity
• Excellent support
• Name recognition and instant credibility
• “Changes That Last a Lifetime” comes to Toyal
America.
16
Toyal’s Culture of Health
• Anyone can learn new, healthier habits at any stage of life
• Adopted Changes That Last a Lifetime® (CTLL)
– One year health promotion program focused on behavioral changes to
improve health, not just about losing weight
– Program tools that actively engage employees to improve their health:







Health screenings and Risk Assessment: The KYN program
Body-for-LIFE book and journal
Interactive website
Daily emails customized and sent to employees (meal plans and exercise)
On-site program information and education sessions
HEALTHspot weigh station
Motivational incentives
– Measurable results
• Affirms Toyal’s commitment to support a culture of health
17
Changes That Last a Lifetime Format
2009 Challenge
2010 Challenge (additions)
•
•
Promotional Items
– Reusable grocery bag
– CTLL gym bag with water bottle and
tape measure
– Body-for-LIFE book and journal
– Exercise bands
•
Program Components
– Know Your Number® pre and post
screenings and reports
– Onsite program introduction,
nutrition and fitness sessions
– CTLL website
– Daily emails with meal plans and
exercise regimen for each day
•
Promotional Items
– Choice of exercise bands, exercise
ball or pedometer
•
Program Components
– HEALTHspot weigh station
– CTLL team competition
•
Incentives
– Team Champions ($100 each)
– Raffle for participants who
completed the program (2 Nintendo
Wii Fit systems)
Incentives
– Male, female and couples Grand
Champion ($500 each)
18
What Did We Do?
Turn Key Program Elements
• Enrollment
– Open to all employees, spouses and significant
others-Critical decision
– Online enrollment; all employees have company email
• Informational Meeting
– Program was introduced with a personal invitation to participate in an
exciting ‘Challenge’ and what to expect
– Motivational speaker inspired participants and improved enrollment
– Leadership participated
• Pre-screening
–
–
–
–
Onsite visit prior to screening date by vendor
Items delivered to facility a few days prior to screening
CTLL provided all program materials to participants
Toyal provided each employee with a set of resistance bands (2009) or
choice of exercise ball or pedometer (2010)
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Integration of Health Promotion
Biometrics
Customized
Daily Emails
Motivational
Incentives
Online
Journal
Automated
Weigh Ins
Access to
Fitness Advisors
24/7 Online
Health Guide
Team
Competition
20
INDIVIDUAL REPORT
COMPANY REPORT
What Began to Happen at Toyal?
• People started talking
- Tips on how they were working the program
- Discussing food choices and recipes
• Participants were surprised by the increased
energy they were experiencing
• Co-workers started noticing clothing fitting loser
• Parent company Toyo K.K. became interested in
adopting our health promotion program to address
stress reduction
28
Develop a Culture of Health
• A fun and easy way to bring healthy choices to your
workplace
• Fruit was provided free to employees in an effort to
improve ‘nutrition compliance’
• Each delivery includes an informative newsletter and
online access
• Fruit selection categories
- Standard
- Seasonal
- Organic
29
Reinforce Healthy Choices
• We changed the menu choices in our
employee cafeteria:
– Salads, fresh sandwiches, fruit, milk, yogurt.
– Fresh juices and energy drinks.
• Limited selections of snack foods and soft
drinks.
• Most importantly: This came as a request
from our employees following a company
survey on our food policy!
30
Key Elements for Success
• Leadership involvement
• Focus on behavioral modification and lifestyle
changes
• Implement a ‘fun’ program to improve
engagement
• Simplify the communication
• Biometric screening (good health is not always
obvious by looking at the outside)
• Ensure the results are measurable
• Include all family members!!!!!
31
Changes That Last a Lifetime
“They are not just changes that last a
lifetime. They are changes that make
your lifetime last longer”
Gus Billquist – 2009 Toyal America Male Grand Champion
Let’s Talk Numbers
• Let’s get down to business
33
Consistent Health Improvements
2009 Challenge
2010 Challenge
2011 Challenge
61%
65%
65%
-9.4 lbs
-7.8 lbs
-8.4 lbs
-1.8 inches
-2.2 inches
-1.1 inches
Type 2 Diabetes Risk Reduction
-31%
-32%
-27%
CHD Risk Reduction
-25%
-28%
+4%
Stroke Risk Reduction
-20%
-26%
-15%
Program Completion Rate
Average Weight Loss
Average Waist Reduction
2009 – 83% lost weight or remained the same; 63% reduced waist size or remained the same
2010 – 89% lost weight or remained the same; 86% reduced waist size or remained the same
2011 – 91% lost weight or remained the same; 70% reduced waist size or remained the same
34
The Medical “Trend” of Health Care Expenses
Phase 1: Consumer Driven Health Plan
2,383,882
2,270,000
2,061,141
2,070,000
12%
8%
1,870,000
1,912,653
1,769,000
1,670,000
6%
Toyal
Actual
1,669,000
1,515,000
1,470,000
1,270,000
2006
2007
2008
2009
2010
35
The Medical “Trend” of Health Care Expenses
Phase 2: 2009 Challenge #1
2,383,882
2,270,000
2,061,141
2,070,000
12%
8%
1,870,000
1,912,653
6%
1,769,000
1,670,000
Toyal
Actual
1,669,000
1,515,000
1,470,000
1,412,000
1,270,000
2006
2007
2008
2009
2010
36
The Medical “Trend” of Health Care Expenses
Phase 3: 2010 Challenge #2
2,383,882
2,270,000
2,061,141
2,070,000
12%
8%
1,870,000
1,912,653
6%
1,769,000
1,670,000
Toyal
Actual
1,669,000
1,515,000
1,470,000
1,412,000
1,284,000
1,270,000
2006
2007
2008
2009
2010
37
The Medical “Trend” of Health Care Expenses
Phase 3: 2011 Challenge #3
2,383,882
2,270,000
2,061,141
12%
2,070,000
8%
1,870,000
1,912,653
6%
1,769,000
Toyal
Actual
1,670,000
1,515,000
1,412,000
1,470,000
1,527,000
1,284,000
1,270,000
2006
2007
2008
38
2009
2010
2011
Medical Insurance: $ (000’s)
Goal: To regress to the ‘mean’ in 3 years
$2,000.00
9 year
average
$1,313
$1,800.00
$1,600.00
$1,769.00
$1,669.00
$1,534.00$1,515.00
$1,481.00
$1,400.00
$1,412.00
$1,365.00
$1,284.00
$1,200.00
$1,000.00
$898.00
$955.00
Medical Insurance
$800.00
$600.00
ROI from 2008 - 2010
Recouped all wellness
expenses in just
3.25 months
$635.00
$400.00
$200.00
$0.00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 YTD
39
Reflections
• Leadership commitment critical
– Your employees will follow you
• Don’t underestimate your employees desire
for healthier lifestyle
– They don’t know how to get healthier
• Inclusion of all family members in the
“Challenge”
– Gets the “real” decision maker involved
• Often the real decision maker isn’t the employee!
• Prevention may be more important than the
cure
40
Most satisfying moment:
“Thank you for my children.”
41