Wellness Incentives &
Outcomes Based Design
Verona Area School District
At VASD, our commitment to wellness stems from and is tied to the belief that finding and keeping the best
talent in our industry is at the core of our success. You've heard it many times at VASD: We care about you. A
big step in caring about your whole life is doing everything we can to integrate wellness into our culture.
The Cost of Healthcare
Nationally, the picture is alarming; currently the US pays $2.8 trillion annually in health care costs, about $7.7
billion per day (according to 2012 Kaiser). If we were to stack that $7.7 billion it would reach 520 miles high
which is the equivalent of 9,152 Green Bay Packer football fields! It’s clear we cannot sustain this out of
control spending. But what can be done? Research is directing us to look at prevention and wellness as an
answer. Currently there are about 2 million deaths annually and ½ are due to preventable causes. According
to the CDC 80% of heart disease and stroke cases, 80% of type 2 diabetes cases and 40% of cancer cases could
be prevented if we did just 3 things…..stop smoking, start eating healthier and moving more.
Where We Stand: Health Insurance
For the calendar year that ended December 31st, 2013, VASD had $11.5 million dollars in expenses but only
$7.8 million paid in premiums. That means our insurance paid $1.46 for every $1.00 we paid in premium. If we
were not under the 5 year guaranteed premium program, our renewal increase would have been 54%. Our
consulting firm determined that the 54% renewal increase calculated by the WEA was “fair, reasonable, and
competitive with the regional market.” Recalculating the renewal with our consultant’s benchmark values
showed a renewal premium increase higher than WEA’s (64.82% vs. 54.90%).
Our guaranteed premium program is in force until July 1st 2016. But that deadline is approaching fast. We
need to reduce our medical claims costs to have a better chance of managing our premiums when July 2016
arrives.
Empowering You
VASD has been working hard in supporting you to make healthier decisions for yourself and your
family. We will continue to provide you with educational opportunities and easy access and
supportive wellness programming. The subject of wellness forces all of us to contemplate how
intentional we are being about taking care of ourselves. You, your family and friends, your work and
work product and your communities are all impacted by how intentional you are about wellness.
We want to be the change. We are committed to the health of our organization and the health of
our employees. In order to support and encourage employees in being physically active, we are
introducing our 2014-2015 Wellness Program. Our program will include opportunities for challenges,
education, comradery and continued health. We hope that by offering you this program in advance
it will be easier to find time (or motivation) to be active at work.
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Wellness Incentives &
Outcomes Based Design
Verona Area School District
Our Results: Wellness
Aggregate Results for the Health Risk Assessment (HRA) and Biometric Screening:
2013-2014:
 Total Participants (514 Participants / 1130 Eligible) – 46% Participation Rate
 Employees (486 Participants / 725 Eligible Employees) – 67% Participation Rate
 Spouses (32 Participants /405 Eligible Spouses) – 8% Participation Rate
 Average BioScreen Score – 856 out of 1,000
 Leading Areas of Risk (HRA) – Skin Health (72%), Nutrition Habits (70%), Physical Activity (59%),
Personal Safety (47%)
 Leading Areas of Risk (Bioscreen) – Percent Body Fat (58%), BMI (53%), Total Cholesterol (38%),
Cholesterol/HDL Ratio (32%)
Wellness Program: Incentive Design Over Time
No HRA
Sept 2013 –Aug 2014
Oct 2014 – Aug 2015
Sept 2015 – Aug 2016
Premium Differential
12% Employee
Premium Differential
13% Employee
Premium Differential
14% Employee
(Applied in Jan-June)
(Applied in Jan – June)
Premium Differential
11% Employee
Premium Differential
12% Employee
Premium Differential
10% Employee
(Applied in October)
(Tentative)
(Applied in Sept)
HRA
HRA &
Biometric
Screening
Process
Outcome
Based
Program
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Check
$25 (WEA) Employee
$25 (WEA) Spouse
Gift Card
$25 (WEA) Employee
$25 (WEA) Spouse
Gift Card
$25 (WEA) Employee
$25 (WEA) Spouse
Gift Card
$150 Employee
Gift Card
$150 Employee
$150 Spouse
Gift Card
$100 Employee
$100 Spouse
NA
NA
$200
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About M3
Founded in 1968, M3 Insurance is Wisconsin’s largest privately held commercial insurance agency, providing employee benefits,
property & casualty, executive benefits, employer-sponsored retirement plans and personal lines. The professionals at M3 are
aligned to specialized industry groups, serving clients across the country from five Wisconsin offices.
M3 is consistently ranked in the top 1% of insurance brokers nationwide and has been named to the list of Best Places to
Work in Insurance by Business Insurance magazine.
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