Challenges Corporations Face AHA

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Challenges Today’s Corporations Face Employers Care About Employee Health

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2 In this session Challenges Today’s Corporations Face Landscape today Pressures on Corporate America Corporate Response Creating Workplace Wellness

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3 Landscape Today: Mounting Costs and Concern

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4 Andrew N. Liveris, President and CEO The Dow Chemical Company “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 employees.” Landscape Today: Improve Health Costs

Pressures on Corporate America Statistics:

Pressures on Corporate America Statistics 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.

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6 “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 economy.” Lee Scott President and CEO Wal-Mart Pressures on Corporate America: Competition In a Global Economy

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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 $3,000 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. Pressures on Corporate America Statistics

Corporate Response: Creating Workplace Wellness:

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

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9 John Rowe, MD Chairman Aetna, Inc. “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.” Corporate Response: Makes good business sense

Case for Workplace Wellness Today:

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 lifestyles 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 programs

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11 Anne M Mulcahy Chairman and CEO Xerox Corporation “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 our people.” Creating Workplace Wellness Can’t do it alone

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Inactivity Is The Problem. So What’s The Solution?

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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.

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14 The Start! Movement Employer Tools: The Goals: The Movement: Start! Start! has the tools to help employers make employee wellness a priority. Start! Fit-Friendly Companies MyStart! Online Tracking Tool Start! Heart Walk Start! Walking at Work Day Start! Walking Program CEO Events Increase Physical Activity to Prevent Heart Disease and Stroke in Americans

MyStart! Online:

MyStart! Online MyStart! Online is a online fitness and nutrition program that allows your employees to track their daily activities Track physical activity such as walking, biking, etc. Track daily caloric intake Daily tips and weekly articles Recipes Monthly newsletters MyStart! Online Tracking Tool Start! Walking Program 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 Outdoor, indoor, physically challenging Tracking tools for your employees Celebration events, and Lifestyle Change Awards to help your employees stay motivated

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Start! Heart Walk Start! Heart Walk is the American Heart Association’s signature fundraiser currently in over 450 cities nationwide. Employers can create company teams that walk at the event and raise funds for research. Surveys show that over 90 percent of employees feel proud of companies that support an important outside cause Supporting the Heart Walk can help enhance community relations Giving back to the community can also boost productivity, employee morale, job satisfaction and loyalty Start! Heart Walk CEO Events Start! CEO Events Start! CEO Events are local events that bring leadership of local employers together in order to show support of the Start! movement. Leaders can learn more about the Start! movement and all the ways to use it for the company. Leaders can learn how to become local sponsors of the movement and the local Start! Heart Walk.

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Start! Walking at Work Day – April 25, 2007 Start! Walking at Work Day Join others across the nation as they wear their sneakers to work on April 25, 2007 and pledge to start a healthier lifestyle as part of this annual event. Bringing start! Walking At Work Day to your workplace is easy. All you have to do is: • Get your senior leaders involved . Having key leaders participate sends a clear signal to staff that your organization supports start!. • Save the date. Reserve time on your senior leaders’ calendars on April 25. Did you know that you could gain two hours of life expectancy for every hour of regular, vigorous exercise? Hosting your walk or rally at 2:41 highlights that fact and provides a much needed afternoon break! • Spread the word. Promote your start! Walking At Work Day using posters in the workplace, contests and interactive activities. Our Start! Walking At Work Day packet will give you the tools you need. Contact your local American Heart Association representative on how to get your packet.

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Start! Fit-Friendly Companies Recognition Program The American Heart Association is recognizing employers who champion the health of their employees and work to create a culture of physical activity and health in the workplace. Companies who are recognized receive immediate benefits such as: Consultation on CPR/AED (automated external defibrillator) programs Recognition on the American Heart Association’s program Web site Local-level recognition by the American Heart Association at local events and in communication materials supporting the recognition program The right to use the program’s annual recognition seal for internal communications to employees (e.g., intranet company newsletters, break room posters) and external communications related specifically to recruitment (e.g., employment section of the company Web site, recruiting tools for job fairs) An official recognition letter sent by the American Heart Association A recognition plaque to display at the worksite Start! Fit-Friendly Companies

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To learn more about the Start! movement, visit the Web site at www.americanheart.org/start Or Get help from our local representatives by going to www.americanheart.org and using our zip code finder to locate the office closest to you.