3.10. SR 05-19-2008REQUEST FOR ACTION
To Item Number
Ci -Council 3.10.
Agenda Section Meeting Date Prepared by
Consent May 19, 2008 Lauren Wipper, Human Resource
Re resentatice
Item Description Reviewed by
Health Rewards Ptogxam Policy and 2008 Funding Loxi ohnson, Ci Administrator
Reviewed by
Action Requested
Approve the attached Health Rewards Program Policy and 2008 funding.
Background/Discussion
For the past three years the City has received funds from Resource Training and Solutions to provide
health and wellness opportunities to our employees. We received these funds because we carried our
medical insurance through Resource Training and Solutions. This year we discontinued this relationship
to provide medical insurance through HealthPaxtnexs, and as such, we have lost this funding.
A 2002 U.S. Department of Health and Human Services report xecealed that health and wellness
programs have reduced healthcare costs by 20 to 55 percent, reduced short-term sick leave by 6 to 32
percent, and increased productivity by 2 to 52 percent. In addition, a study at Providence General
Medical Centex showed an 83 percent reduction in per-capita workers' compensation costs and Prudential
Insurance reports a 32 percent reduction in per-capita disability costs. The City's Health Rewards
Program is in its infancy; however I have seen a positive change in employee's attitudes about healthy
lifestyles and our event participation numbers axe fantastic! Resource Training and Solutions indicated
that an employer should be happy if 25 percent of their employees participate in an event and the Ciry
continually exceeds that number.
The Health Rewards Committee has been hosting three main health and wellness events throughout the
year. In the spring we partner with the Safety Committee to provide a lunch, safety training and outdoor
activity event to encourage employees to be active with their family and friends during the summer. The
committee hosts a blood drive around Halloween and our largest event of the year is the Health Fait.
Employees receive a multitude of information and flu shots and a variety of health screenings are
available right at the fait! These events are not only a benefit to the City, as noted above, but also greatly
enjoyed and appreciated by employees.
Financial Impact
Resource Training and Solutions has developed a formula fox calculating wellness money fox each
woxksite. It has warked well fox us these past three years and I propose we continue using the same
formula. The formula provides $500 funding base/planning money and $9.25 per employee covered by
medical insurance. This formula would continue to provide appropriate funding should our employee
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numbers change. Based on this formula, 2008 funding fox the City's Health Rewards Program would be
$1,628.50. This money would come from the money the City received from the BlueCxoss B1ueShield
tobacco settlement.
Attachments
• Health Rewards Pxogxam Policy
Action Motion by Second by Vote
Follow Up
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CITY OF ELK RIVER
HEALTH REWARDS PROGRAM POLICY
Purpose of Policy
Encourage employees to live healthy lifestyles by providing health and wellness learning opportunities.
Healthy employees will reduce absenteeism, increase productivity, help control medical costs and
insurance premiums, and reduce incidents of illness and injuries.
Health Rewards Program Committee
Committee members shall be comprised of employee volunteers from a variety of departments of the
City. The committee is responsible fox providing appropriate health and wellness opportunities for all
City employees.
Events Provided
The Committee may provide different events from year to year. Events shall be related to health and
wellness, meet public purpose expenditure guidelines and be deemed appropriate by the City
Admuustxatox. Employees who axe working their regular job during the scheduled time of the event may
use up to one hour of paid time to attend the event. Events that axe intended to be attended on the
employee's own time will be advertised as such.
Funding
Each year, the budget fox providing health and wellness events shall be calculated as follows:
$500 funding base/planning funds
$9.25 per employee that is covered by medical insurance
!ys long as funds are available, this budget shall come out of the money received by the City from the
B1ueCross BlueShield tobacco settlement.
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