Greater Omaha Packing Company

Benefits of On/Off the Job Wellness Programs – Cost

Containment April 3, 2007

Kathleen Krantz, Vice President Technical and Human Resources

Managing On/Off the Job Wellness Program

A short story of perseverance…

The Corporate Culture Started

in 1920

A family-friendly

workplace

•Third generation, privately owned•Located in heart of corn country

•15,000hd/week•First rate customer service

•$900 Million in sales•Dedicated to employee and food safety

Greater Omaha -21st CenturyWho we are….

Greater Omaha Packing ….an aerial view of where

Our stately Cattle Processing Facility... a showcase of the 21st

century

Our Fabrication Processing Room …the pride of our boxed beef programs

What..An Award-Winning Culture

Greater Omaha Packing Company was voted one of the “BEST PLACES TO WORK” in Omaha in 2005, and was presented the Award by the Omaha Chamber of Commerce

Kathleen Krantz VP Technical and Human Resources

725 EMPLOYEES

Henry Davis, CEO, leads the team

Our Associates walk through these doors…the finest food production team in the world

Recognizing over 60% of our workforce with 5, 10, 15, 20, Years of Service

Goals for Employee WellnessOn and Off the Job

GOP strives to provide a healthy environment for everyone with an unyielding focus on the health, safety, and betterment of both employees and their families

Best Practices of our Safety, Health and Wellness programs

Management Buy – In at all levels

CEO to Supervisor, at least a few on each level

Create a Cohesive Wellness Team

Nurses, Community Health, Medical Insurance Team Members as a Steering Committee

Collect Data with Health Questionnaire –

Use a qualified contractor Find the best way to administer this for your company

Develop a Safety/Wellness taskforce

Taskforce of staff members to promote and assist in implementation of programs

Health Fairs provide an essential part of the program for information sharing and access of resources for the program

A Checklist for Development

Craft an Operating Plan Write goals with objectives with their interventionsShort-term and long-term goals are essentialDerive plan from employee questionnaires and use guidance from team members.Insurance Medical Claims utilization data should be used as a tool for customized plan design

Measurement of outcomes for baseline dataUse a health benchmark program, both national and regional, to determine corporate return on investment Utilize the resources of a third party (Simply Well or Wellness Council of America are excellent resources)

Measure your outcomes

GOP Wellness Structure

Wellness committeeAnnual health fairsSimplyWell provides on-site preventative screeningsSimplyWell offers a comprehensive health risk appraisalOn site physicals and educationElectronic Education

Challenges and Benefits

Challenges -Time constraints of employee education based on the cultural differences of healthcare in the paradigm shift from disease management to disease preventionBenefit – GOP has been involved in health and wellness program education for over 12 years and utilizes the strength of SimplyWell to impact change through the utilization of a very sophisticated on-site, on-line program

Solutions…

SimplyWell is the medical partner with our employees offering

Comprehensive Data and BenchmarkingBi-lingualHIPAA compliantTPA solutionExcellent medical resources for disease management and prevention

SimplyWell offers

Continuous on-site training through classroom setting “lunch and learns” using 3-12 minute snippets from the SimplyWell on-line video trainingExecutive Summary and bench-marking data used to determine educational programs

SimplyWell…An On and Off the Job Wellness Program

SimplyWell Program is Free to all employeesSimplyWell program is available to all GOP employeesIndividual Investment of 2% of total healthcare premium cost PEPM.Investment of Kiosks to assist employees with on-site education in Learning Center Medical Health Coordinator assists in the initial stages of implementation

Greater Omaha’s Learning Center provides Employee Education

Our Employees have the opportunity to learn people skills/life skills on-site

Health and Wellness information All levels of English and SpanishBasic Computer skillsPrepare for Citizenship

Our SimplyWell partner provides a…Personal Health Record solution offers

A portable Personal Wellness Profile based on individual employee historyA Bi-lingual website solution with health modulesPHR accessed on-line in a protected websiteEmployer solutions to IT development of PHR

Opportunities.. Prevention of Risk and Disease Management

Phone coaches will call 2-4 times per yearHealth tracking for exercise, diabetes management, High Blood pressure

Administration of Systems

GOP assists in the conversion to paperless Personal Health Record systems working with SimplyWell system education of employeesSimplyWell is the TPA managing all of the hardware, software, disaster recovery, and IT for Greater Omaha

Example of a Personal Health Management Website

Personal Wellness Profile - Online

Personal Wellness Profile - Online(continued form)

A Healthy Employee is a Productive Employee

Objectives of 360 ReviewReview Risk DataDefine consulting needs Evaluate program participation and adoption rate of the populationReview communication and incentive strategies for the GOP wellness objectivesProvide strategic planning support

Survey ResultsParticipation by Site Site Survey Results

Solutions & RecommendationsDemo new features

FeedbackDiscussion of Action Steps for 2007 – 08 plan year

2006 Survey

73% of all employees surveyed felt that GOP was concerned about their health and safety.

86% were very or mostly satisfied with their work.

Areas of low risk - 2006

Good lifting 91%Seldom stressed – coping well 88%Good social support 88%No exposure to violence 94%

High Risk: Substance abuse - 2006

Heavy Alcohol Use 3% Drink and drive 6%Drug abuse 2%

High Risk: Home Safety - 2006

Limited or no seat belt use 4%No smoke detector 10%No helmet 15%

Nutrition Score - 200665% Good to Excellent

Breakfast 74% Daily or almost dailySnacks 76% Almost everydayFast food 44% Seldom or neverFats in diet 17% Primarily low fatWhole grains 35% 3-6+ per dayDark leafy vegetables 12% 5+ per weekSalt 52% Seldom or never

GOP Health Risk Percentage

0102030405060708090

100

Poor Nutrition

Improving Fitness

High CancerW

eight Management

Coronary Risk

Chol > 200GlucoseSmokersBack CareStress M

anagement

High Alcohol

High Blood Pressure

2006

Risk Data Repeat Participants

Safety Score

67.3%18.0%5.2%9.5%2006

+1.5%

16.5%

Good

+1.7%

65.6%

Excellent

+0.2%-3.5%Change

5.0%13.0%2005

FairPoorYear

Safety

72.8%

77.0%

Yes & Think so –that my employer is concerned about my

health & safety

7.1%

8.0%

Drink and Drive/Rid

e

33.0%

43.2%

Wears helmet if

applicable

90.4%

89.6%

Mostly -Always lifts

properly

90.2%

83.0%

2006

88.9%

78.1%

2005

Properly working smoke

detector

Always wears

seatbelt

Year

Source: Group Summary as of 11.27.2006 – 2005 & 2006

Exercise Programs

Risk Data Repeat Participants

15.4%7.3%15.6%20.4%41.3%2006

+5.1%+0.1%+0.2%-6.6%+1.2%Change

15.4%

3 days/wk

7.2%

4 days/wk

10.3%

5+ days/wk

27.0%40.1%2005

1 to 2 days/wk

No ProgramYear

Body Mass Index (BMI)

24.7%37.1%31.7%40.1%2006

+2.2%+6.8%+9.6%-4.1%Change

30.3%

Women(overweight, 25+)

22.5%

Women (obese, 30+)

22.1%44.2%2005

Men (obese, 30+)

Men (overweight, 25+)

Year

Source: Group Summary as of 11.27.2006 – 2005 & 2006

GOP Preventable Risk Scores

2002 none to one risk = 26.0%2003 none to one risk = 32.1%2004 none to one risk = 6.8%2005 none to one risk = 28.1%2006 none to one risk =29.2%

05

101520253035404550

None 1 Risk 2-3 Risks 4-5 Risks 6+ Risks

20022003200420052006

Outcomes-Employee Perspective

Low Attrition rates send strong message of employee acceptance of Wellness programsSimplyWell is the cornerstone of family health conversion in healthy lifestyle changesSimplyWell offers solutions for bridging the gap of making healthy choices based on individual needs and health risk assessmentsOver 1200 employees and family members attend GOP Health Fair annually

Employer Advantages…Return on Investment

Provides a solution to managing claims and overall healthcare costsAfter three years with program, negotiated a 4.4 % decrease for group medical insurance premium rates for 2006 plan year compared to the National Average of an 18-30% increase5-year Self-Funded costs savings vs. Standard Premium of $3M to corporate bottom-line

$4,117 $8,376 2005/2006

$4,862 $7,368 2004/2005

$4,911 $6,020 2003/2004

$4,437 $5,239 2002/2003

Greater OmahaNatl. Ave.

$5,239$4,437

$6,020$4,911

$7,368

$4,862

$8,376

$4,117

$0

$5,000

$10,000

2002/2003 2003/2004 2004/2005 2005/2006

Annual Health Plan Costs

Natl. Ave.Greater Omaha

Greater Omaha Packing’s – Annual Health Plan Costs per Employee

Outcomes ofBest Practices

Greater Omaha Packing Co., Inc. received the Platinum Well Workplace Award from the Wellness Council of America in 2004.The Award is for the commitment of the company towards the health and welfare of our employees both on and off the job.

Corporate Culture.. Safety Outcomes

Greater Omaha Packing Co., Inc. received the Platinum Safety Award of Honor for thirteen consecutive years of our Safety Injury Record and Loss Control Prevention Program from the National Safety Council in 2006.

Summary

Continuous education of Coronary Risk, Smoking, Cholesterol, and Diabetes Management Programs Cancer, Nutrition and Fitness through “Wellness Challenge Programs”Enrollment should exceed 85% in 2007

Our story continues…A “Work in Progress”

A healthy employee is a productive employee

Benefits of Wellness – On/Off the Job