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Home My WebLink About[04c] Wellness Program 4(c) Council Agenda Item MEETING DATE: November 20, 2014 AGENDA ITEM: Wellness Program SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: The City purchased the employee health insurance through Resource Training and Solutions, which is a co-op. As such the City benefits from being a large group and we are considered self-insured as it applies to the affordable health care act. In addition, members of the Co-op benefit from total claims and groups with high claims have their premium bought down or conversely they are rewarded with additional discounts. The City has experienced both buy down and premium reward. Another benefit is programming that is offered, including a wellness program. They have piloted a wellness program that is voluntary for employees. Participating employees will receive financial incentive based on participation. The Wellness Program for Resource pays the incentive, not the City. ATTACHMENTS: REQUESTED COUNCIL ACTION: Authorize the Administrator to execute an agreement to participate in the Voluntary Wellness Program This page intentionally left blank Resource Wellness Alliance Incentive Program Major Objectives of the Resource Weiiness Incentives Program 1. Improve health of inember site employees 2. Educating members on their health in order to reduce health care costs for member sites 3. Create financial incentives tied to activities that encouraging a healthy lifestyle Activities Based Wellness Program Reward healthy activities with wellness incentives. (Similar to the fitness discount program) • Year one: online health risk assessment required, online healthcare coaching provided with a personalized health assessment portal, $200 incentive • Year two:Year 1 activity plus biometric screening required, $240 incentive • Year three: Year 2 activities plus employees are eligible for an additional incentive for meeting recommendations for cholesterol, blood sugar and blood pressure. An incentive of$50 is paid for each healthy biometric, up to$390 incentive can be earned in year 3. o Blood Pressure—Healthy range 120/80 or less o Total Cholesterol—healthy range is less than 200 o Blood Sugar—healthy range is 70-100mg/dl o If employees do not have a healthy biometric,they have the option to take an online health course through BCBS for each measurement missed in order to earn the full incentive. Program Timelines Year 1: Schools CCOGAs Complete the online Health Risk Assessment Spring (Feb -April) Oct/Nov/Dec Incentive Payout Fall (Oct/Nov) Jan/Feb Year 2 or 3: Conduct a Biometric Screening Feb/March Oct/Nov Complete the online Health Risk Assessment March/April Nov/Dec Incentive Payout Oct/Nov Jan/Feb Wellness Incentive Uses Contribution to a HSA Account Contribution to a VEBA Account, existing or set up a single purpose VEBA wellness incentive account Program Launch Support Once the dates of the program have been determined, Resource will provide communication materials to introduce the program to employees Agreements Provided to Simplify the Approval Process (Business Manager/HR) o Model Memorandum of Agreement, collective bargaining language o Model Personnel Policy language o Letter of agreement with the Resource o Select Account agreement, adding single purpose wellness incentive VEBA account Launching the Wellness Incentive Pilot Program Year 1: Determine the dates for employees to complete the health risk assessment (HRA) - Try to give two weeks for communication prior to the assessment timeframe o Ready—Email 2 weeks prior o Set- Email 1 week prior o Go—Email on the first day of the assessment timeframe - If the incentive being applied toward premiums or deposited into a medical savings account (HSA/VEBA) - Schoollogo - Select a contact person(s) for employees who have questions about the program Year 2 and 3: Determine the dates of the Biometrics Screening - Fasting required - Schedule screening appointments 15 minutes apart Obtain pricing and select a vendor to provide Biometric Screening services ($50 or less per person) - Blue Cross Blue Shield/Summit Health - MN Nurses - Homeland Health - Local Hospital/Clinic Confirm biometric screening vendor selection and pricing with Resource - Email information or copy of proposal/agreement to Tammy for approval Determine the timeframe for the Health Risk Assessment to be completed - This timeframe will vary depending on the biometric screening vendor selected and the availability of screening results. The HRA timeframe should not start until employees have received their biometrics results. Send the following to Tammy for customized communication materials: - Biometric screening dates - Health risk assessment timeframe Dan's Contact Information: Tammy's contact information: Phone—612-799-2999 Phone- 320-255-3236 Email—daniw@ebisinc.net tbierv@resourcetrainin�.com MODEL MEMORANDUM AGREEMENT WELLNESS PILOT PROGRAM Disclaimer. This model language has been provide for discussion purposes only and is not intended to be relied upon by any party as legal advice. Model language may not be appropriate for every situation, and employers and unions should make their own determination with the assistance of legal counsel as to the suitability of model language for their purposes. \[date\] This Memorandum of Agreement (“Agreement”) is entered into as of the by and between \[insert name of the \[Name of Employer\] (the “Employer”) and the exclusive representative of local union\] (“Union”). The Employer and Union are referred to at times in this Agreement individually as a “Party” and collectively as the “Parties.” Whereas , the Employer desires to offer incentives to employees who voluntarily choose to participate in wellness programs (“Wellness Programs”) pursuant to a pilot program (the “Pilot Program”) that is made available through the Resource Training & Solutions Wellness Alliance (“Wellness Alliance”). Whereas , the Pilot Program is intended to be temporary and will sunset at the date agreed upon herein. Be it therefore resolved, that the Parties agree to the following: Section 1. Pilot Program. During the term of the Pilot Program, employees will be provided financial incentives to participate in and complete Wellness Programs made available through the Wellness Alliance. Participation in the Pilot Program by employees is completely voluntary. Section 2. Eligibility. Incentives under the Pilot Program are limited to employees who are enrolled in Employer-sponsored group health plans made available through Resource Training & Solutions. The Pilot Program shall terminate with respect to any class of employees that ceases to participate in group health plan coverage made available through Resource Training & Solutions. Section 3. Incentive. The Employer will pay incentives in the amount of $200 in 2015 for each employee who completes a health risk assessment in October or November of 2014. The Employer will pay $240 in 2016 for each employee who completes a health risk assessment and participates in biometric screening in 2015. No amount of incentives shall be payable as taxable cash compensation. Section 4. Application of Incentives . The Parties may agree to contribute incentives to HSAs or VEBA account of employees rather than use them to reduce health insurance premiums. Individual employees are not permitted to determine how incentives will be applied. Employers may contribute incentives into: (1) the HSAs of employees who have established HSAs through a custodian selected by Employer or (2) the individual accounts of employees under the Employer’s HRA funded through the Minnesota Service Cooperative VEBA Plan and Trust in the manner determined by Employer or as otherwise agreed upon. Incentives earned by employees may be applied, to reduce the employees’ share of health insurance premiums under the coverage option selected by the employee. The reduction of the employees’ share of health insurance premiums shall be applied in the manner determined by Employer or as otherwise agreed upon. Section 5. Wellness Programs . During the first year of the Pilot Program, employees will be eligible for an incentive if they complete an online health risk assessment and review the results. During the second year of the Pilot Program, employees will be eligible for an incentive if they complete an online health risk assessment and review the results, and participate in biometric screening. In subsequent years, Employer will work with the Wellness Alliance to make additional Wellness Programs available and Employer may modify the incentive structure as it deems appropriate. In no event will an incentive be contingent on satisfying a standard related to a health factor, unless a reasonable alternative standard is made available to achieve the reward for persons who could not otherwise obtain the reward because of a health condition or for whom it would be medically inadvisable to attempt to satisfy the applicable standard. Section 6. Confidential Information . Individual information that employees provide on the health risk assessment or learn through biometric screening will not be shared with the Employer or the Wellness Alliance. The Employer will receive information on who completes the health risk assessment and participates in biometric screening solely for the purpose of determining who is entitled to an incentive. Section 7. Temporary Program; Sunset Provisions . The Pilot Program may be terminated at the discretion of Employer at any time, but incentives earned before the Pilot Program is terminated will be payable as described herein. The Pilot Program will automatically terminate on December 31, 2016 unless renewed by agreement of the Parties. Employer is not required to bargain for renewal or extension of the Pilot Program and Union agrees that expiration of the Pilot Program will not constitute a reduction of aggregate benefits. Section 8. Entire Agreement. This is the full and complete agreement of the parties on this issue. There are no other oral or implied agreements. Section 9. No Precendent. This agreement does not set any precedent for any future issue, nor does it authorize opening any collective bargaining agreement between the Parties for negotiation. Employer: For the Exclusive Representative: ___________________________ _____________________________ Date:______________________ Date:______________________