ECONOMIC SNAPSHOT | HEALTH AND WELL-BEING

Employers and employees benefit from a healthier lifestyle

By SHERYL JEAN
Staff Writer sjean@dallasnews.com

By MICHAEL HOGUE
Staff Artist mhogue@dallasnews.com

The growth of health care costs to employers has slowed in recent years partly due to changes made by them and their employees. Many employers have shifted costs to employees by raising deductibles, co-pays/co-insurance or out-of-pocket maximums or moving toward high-deductible health plans. Workforce health management, or wellness, has become a top long-term strategy to help control health care spending and encourage healthier behavior.
Top quintile
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2nd quintile

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Health care costs

Average benefit* cost per employee: 2011 U.S. $10,438 $11,003 Texas $9,232 $9,770 Dallas-Fort Worth $9,240 $9,641
* Includes medical, dental, prescription, vision and hearing benefits at companies with at least 500 employees

Texas state of well-being

Texas ranked No. 27 nationally for the overall well-being level of its residents in April 2012, the same as in 2011. Hawaii was the top state. West Virginia was last. Texas Well-being overall Life evaluation Emotional health Physical health Healthy behavior Work environment Basic access

2012

2011

2012

27
14 24 24 37 19 45

27
10 29 25 33 18 45
El Paso

Texas metro areas

D-FW Killeen Austin San Antonio Houston Corpus Christi McAllen Beaumont

Where are people happier and healthier?

People living in large U.S. metropolitan areas have higher levels of well-being than those in small towns or rural areas. Only one of nine Texas metro areas (Austin) ranks in the top 20 percent; five are in the bottom 20 percent. Metro area
Austin El Paso San Killeen Antonio 4,860,615 4,525,638 1,658,901 301,581 D-FW Houston McAllen 545,455 Corpus Beaumont Christi 323,733 297,520

Population (18 and older) 1,388,934 595,273

Overall rank Life evaluation Emotional health Physical health Healthy behavior Work environment Basic access

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

34 36 18 33 71 101 66 19 68 103 63 41 75 73

50 163 9 87 94 127 24 45 72 63 88 189 173 187

61 64 43 34 70 86 40 37 143 137 47 71 130 114

74 68 33 40 81 43 29 28 137 125 70 62 152 160

91 55 52 13 123 99 120 100 70 121 92 79 139 111

157 168 69 97 182 187 152 142 162 107 174 179 118 156

175 164 85 46 116 180 161 186 114 89 177 98 189 190

177 78 125 36 170 97 182 120 169 159 162 30 171 142

186 167 156 131 144 167 174 124 179 178 188 140 174 179

NOTE: Ranking of 189 metropolitan statistical areas, following U.S. Census Bureau definitions.

Yoga at work

U.S. big businesses were more likely than small businesses to offer a wellness program in 2012. Gym Offers at least one wellness membership discount or program on-site gym Smoking cessation program 70% 28% Weight loss programs Lifestyle coaching Nutrition/ healthy living classes 54% 23% Biometric screening

Large companies (200+ employees) Small businesses (3-99 employees)

94% 63%

65% 28%

65% 26%

56% 21%

48% 13%

SOURCES: Gallup-Healthways Index Survey 2012; Kaiser/HRET Survey of Employer-sponsored Health Benefits 2012; Mercer; 2013 Nielsen Claritas; U.S. Census Bureau

The bottom line

Longer term, you will start seeing more requirements for the employee to not pay a higher medical premium. For instance, tobacco users or employees with multiple risk factors may pay more if they do not enroll in a tobacco cessation or other program. Youll also see more wellness programs to reward employees for healthier lifestyle changes. Becky Hall, vice president of health and wellness, Baylor Health Care System

Of employers that have tried to measure the return on investment of wellness programs, about three-quarters are satisfied. We continue to see a significant increase in employers each year looking to health management programs to help control costs and employers using incentives to increase participation in those programs. Mark Chronister, partner and head of health and benefits practice in Dallas, Mercer

More health care options will be available to more people as the new health care law is phased in. However, companies are concerned about compliance with the law and rising costs. It appears that most future options will require many employees and individuals to pay more and/or be more proactive in managing their health. Sheryl Jean, staff writer, The Dallas Morning News