New health insurance strategy: Incentives for healthful lifestyles

Starting at 4:15 a.m., Jack Mason works out for two hours a day before he goes to work. Once he gets to the Provo-based Nature's Sunshine Products, the software engineer logs it online. He tries to eat more fruits and vegetables, and steers clear of ice cream, because his work is watching his diet, too.
The program is voluntary, as are the supplement manufacturer's subsidized Weight Watchers meetings, discounts on off-site gym memberships, free blood screens and "lifestyle coaches" that provide employees encouragement to meet their health goals.

But most of the 550 workers participate because it pays off for them and their company: Nature's health insurance costs are risingless than 2 percent a year - instead of the double-digit jumps other employers have seen - saving the company an estimated $5.5 million since 2003.

And employees like Mason - who credits his work-inspired exercise and diet for helping him weather a bad biking accident - earn up to four hours of paid time off every six months and get free health insurance. Those who don't participate in the health screens and goal-setting must pay 15 percent of the premium.

Expect to see more rewards for healthy behavior - and monetary penalties on the unwilling - as Utah employers turn to wellness programs to help them reduce health care costs and boost employee productivity. According to SelectHealth, the state's largest insurer, premiums across the state are expected to jump an average of 10 to 12 percent in 2009. Now's the time many companies are planning theirinsurance plans for next year and, in addition to reducing benefits and shifting costs to employees, many are demanding incentive programs from their insurers and accountability from their employees.

Christine Frazier, Nature's insurance benefits manager, said the traditional insurance model of "if I get sick I can go to the doctor and he can fix my problem" has to go, a belief echoed by lawmakers who are trying to reform Utah's health care system.
When national figures show 70 percent of health care pays for preventable conditions, employees should "feel like they do have a responsibility to address some of these issues before they become chronic," she said.

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