Target is paying employees to have annual exams

Target is trying a new pilot program where employees are paid to have annual exams and follow a personalized health regime. Of course, their goal is to lower health costs by encouraging their employees to take care of themselves. It sounds innovative and pro-active.

Interestingly, only 59 percent of eligible employees completed the three initial stages necessary to participate in the program. Of those, only 38 percent remain "engaged" in the program. If my math is right, that means only 22 percent of eligible employees are actually following through on the program and utilizing its benefits. Thats less than 1 in 4.

My other concern is what will happen when Target fires an employee who happened to be one of the poor performers on their health program. Will the employee make a connection between their termination and Target's aggressive approach to managing health care.

Link is here for more info: [url]http://www.reuters.com/article/newsOne/idUSTRE54E3T120090515[/url]

Comments

  • 22 Comments sorted by Votes Date Added
  • 22% of 350,000 is 77,000. That's a lot of reduced spending on health claims. And who knows, perhaps when people observe how well those who stick to the plan do (and get jealous of the rewards) more will be inclined to participate. I have no doubt that many fall off the plan, but perhaps it will the same as it is with smokers. The more times you quit smoking, the better your chances that the next time you quit it will be for good. Perhaps the more times employees are exposed to healthy living ideas, the more times they will refuse the quick hamburger and eat something healthy instead.

    BTW, have I mentioned that I love to go to lunch to Sonic? :o
  • When you say 'eligible employees' does that account for the ones who aren't with the company long enough to finish all three steps (or even the first one)?

    Sonic onion rings rule. I know where I'm going for lunch now!
  • Not sure how Target came up with who was eligible. Its just a pilot program so its a small percentage of their actual number of employees.

    I just found it interesting that even by paying people to do what they should do that less than 25 percent of the people actually followed through. To me it just goes to show that the health care crisis is very complex.
  • Sorry to disagree, but it makes perfect sense to me. You might have a few people who will respond strictly for the money's sake, but not many. Those who really need the money are most likely eating very cheaply and thus poorly. The amount involved is unlikely going to be enough to help them to eat better. For those who don't need the money, the amount offerred is unlikely to sway them one way or the other. Only someone who believes they should be taking care of themselves anyway will use the money as an excuse to force themselves to take the necessary action. However, their successes might help others to see their health and habits differently. Everyone who was anyone smoked in the 50's and 60's. The cultueral change was slow, but we have now turned things completely around. Smokers are now made to feel that they are outcasts.

    Target's plan may not work, but I am all for anything that helps change people's ideas and motivations towards health. Target: =D>
  • Maybe the other 75% just really like those cherry limeades!

    SharonO:)
  • We are attempting something similar, although on a much smaller scale. We started last year (our insurance plan year is July through June) by having employees complete a "health risk assessment" questionnaire on our medical insurance provider's website. In return we waive a portion of the employee's out-of-pocket contribution towards premiums for the plan year. Neither the employer nor the health insurance company sees the employee's responses or the assessment of the employee's health. One of our unions chose not to participate; so we have two unions and unrepresented employees participating. We only had a 41% participation rate.

    We just earlier today, signed a letter of agreement with one union to expand the program for the coming plan year. Now employees will need to confirm that they had their blood pressure, cholesterol and glucose checked within the past six months. We have contracted with our local hospital to set up clinics on site for employees who don't want to go to their own physician. Our medical insurance provider has agreed to pay 50% of the cost; and we will split the other 50% with the union. I am still waiting to hear from the other union. I will be surprised if we have the same 41% participation rate.

    We know this is an effort that we can't be sure will lead to lower claims. How do you measure heart attacks that didn't happen? And, actually, it may lead to higher claims in the short-term as employees seek treatment for high blood pressure, etc. However, we hope in the long-term we will see a healthy work force and lower claims.
  • Interesting post, David S.

    Nae, I guess what I am saying is that Target may be spending alot of money without much of an ROI. 22 percent sounds close to the percentage of people who ALREADY take care of themselves and follow a health regime.

    I'm all for rewarding good behavior and I also applaud Target (and David S) for their pro-active approach but I am unconvinced that this is the solution only because (like Nae said) I dont think the rewards are significant enough to overcome human nature (yet).
  • We are also planning to start a wellness program but on an even smaller scale than David's. Our medical insurance provider (UHC) also has a health risk assessment questionnaire and other online programs for weight loss, nutrition, stress management, etc. We were thinking of offering incentives to complete the questionnaire and different steps in the programs, however, nearly a third of our employees are on their spouses' medical coverage and thus don't have access to the online programs. David, do you offer anything else to your employees who aren't on your medical plan as an alternative?
  • We're just going to install condom dispensers in the restrooms. Best ROI percentage of any wellness program out there.

    :)
  • Here's my new favorite saying: Don't be an idiot. You can apply this to nearly everything in life.

    Everything is a choice. Don't eat crap, smoke, not exercise, drink heavily, etc. and expect your insurance and/or the government to pay for it! You made a conscious choice to do (or not do) these things. I should not be expected to foot the bill for your poor choices. The fact that Target had such low participation doesn't surprise me at all. The majority of Americans don't WANT to do the things necessary to become healthy; they want a quick fix pill that leads to another pill and another. I think that smokers and obese people not trying to improve their lives should pay more for their insurance.

    I'm not sure how to steer the U.S. toward a healthy lifestyle. They keep showing all these reports of Mediterranean people who live long, health lives and tell us to take notes from them, but no part of the American lifestlye is condusive to theirs. We need to make healthy choices affordable and accessible. There's something really wrong when you can get a large fry for less than a piece of fruit.

    In case you couldn't tell, I am quite passionate about this issue :)
  • Our carrier. .BC/BS is a big supporter of our Health Fair. The risk assessment questionaire is done at the Health Fair. .it is not mandatory, but you are only eligible for door prizes if you complete it. They have Health coaches on hand to go over the results and provide us with a summary every year.
  • Overeating, smoking, drinking, etc, can be, and often is, a direct result of stress. For many people the most stressful part of their lives is work. I’m all for a healthier way of life and I think that includes a healthier workplace – with less stress.

    Most folks can handle deadlines, and production quotas, etc. but have a hard time coping with supervisors who yell at subordinates; coworkers who spend more time sucking up to the boss than working; and, my pet peeve, workplace bullies who prey on anyone they perceive as weaker.

    Being in HR, we’ve all seen these things happening and often had very little control over correcting the situation, which highlights another stress inducer – an individual’s lack of control over what happens to him/herself, along with lack of consideration, respect, and empowerment.

    Most employees need less of the “you will do as I say as long as you work for me” bosses (sounds like my dad - way back when - who just couldn’t understand why I joined the hippie revolution) and more of the “we need to complete a, b, and c – let’s figure out how to get them all done so we can move on to d and e” bosses.

    What would you call a workplace where the employees are empowered to do their work along general guidelines rather than adhering to rigid requirements that make no sense to anyone except the boss?

    What would you call a workplace where employees give and receive respect and consideration to and from management and their coworkers?

    What do you call a workplace where employees can make decisions about their work without fear of being punished for making a mistake?

    I’d call them healthy workplaces.

    Maybe, the best way to reduce insurance cost is not just to try and help employees be healthier but also to help management create workplaces that are more conducive to health and wellbeing for their employees, as well as for themselves.

    Off the soapbox now!

    Sharon **==
  • Sharon, that's definitely something I'd get on board with! :)

    There are healthy ways to deal with stress, but most of them require more "work" than lighting up, pouring a drink, or opening a bag of Doritos. Exercise is an excellent stress reliever, not to mention a natural anti-depressant.

    We need to give our employees (and our country for that matter) the tools to build a healthy life, and they should be affordable. I don't call an $80 monthly gym membership affordable!
  • We require all full-time employees to be on our plan and, no, we do not offer an incentive to the few part-time employees who opt out of our plan. We have discussed expanding the incentive program to include spouses, but that is probably a few years away.
  • Ok, let me ask you this. How do you feel about heavy taxes on bad behavior?

    - alcohol
    - cigarettes
    - snacks
    - fast food
    - Televisions

    Would you be opposed to that? What if cigarettes cost $8 or $10 per pack? What if 10 percent of all snack food sales funded our new health plan?
  • Television? Really? Because... everyone has heard of the scores of people who have died due to a TV falling on them. Other than that? If being sedentary is the issue, I know very few people who read/use the computer and exercise at the same time (myself excluded). I love the History International Channel and PBS. I also have a BMI below18%, eat healthy foods and exercise daily. How about we tax the internet and computers, too?
  • Just seeing if anyone is paying attention.
  • I am probably not one to talk about healthy lifestyle. Im fit but thats because I keep active. My diet is not horrible (everything in moderation) but not great either. (hotdogs)

    This year I need to get a complete physical. I wonder if Target would pay me. I am a customer and dead customers don't spend money? Hey, maybe I am on to something...
  • Ah Paul. It is good to see you living up to your member designation.
  • [QUOTE=DavidS;716216]We are attempting something similar, although on a much smaller scale. We started last year (our insurance plan year is July through June) by having employees complete a "health risk assessment" questionnaire on our medical insurance provider's website. In return we waive a portion of the employee's out-of-pocket contribution towards premiums for the plan year. Neither the employer nor the health insurance company sees the employee's responses or the assessment of the employee's health. One of our unions chose not to participate; so we have two unions and unrepresented employees participating. We only had a 41% participation rate.
    [/QUOTE]

    You ONLY had a 41% participation rate?! We did something similar through our health insurance company last year, and the participation rate was so low it didn't even register! I think four of us (out of over 100 covered employees) actually completed the health risk assessment and as far as I know, I'm the only one who's still doing the follow-up phone calls with a health coach, which is part of the overall plan. The insurance company is offering the company a small reduction in premium rates based on how many employees participate, but we haven't figured out yet what more we can do to encourage our employees to participate. I've found in the past that even offering the employees a monetary reward generally doesn't work; it seems nobody wants to be bothered.
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