Tuesday, November 09, 2010


#WHIT - 
11:15 am -
12:00 pm
The Role of Incentives in Driving Member Behavior – What Works and What Doesn’t
Although behavioral interventions have the potential to improve health, sustainable behavior change is difficult. Many people have difficulty changing health behaviors because it requires trade-offs between immediate consumption and delayed, often intangible, health benefits. Rewards and incentives can provide people with immediate and tangible feedback that helps make it easier for them to do in the sort-term what is in their long-term best interest (and the best interest of employers, insurers, and public policy - the quadruple bottom line).
  • Incorporating incentives platforms into your strategy
  • Explore how to measure results
  • Evaluate cost benefits
Les McPhearson
Director, Consumer Innovation
Humana, Inc. 

 View Biography

70-75% of cost in Healthcare is from preventable lifestyle driven issues.

ie. 15% of GDP  spending is preventable. $1.5T

"Every extra pound of belly fat is proof of the power of advertising"

Ken Thorpe, Emory University: Obesity related health care spending will quadruple to $344B in nine years

This is a business problem because businesses benefit from employees being healthy.
 Everyone else benefits from people being sick - Dee Eddington.

Focus on chronic conditions to bring down costs through disease management and clinical programs

Focus on 80% of low utilizers to KEEP costs down.

Wellness needs to be Proactive. Most are currently Reactive.
Incentives have a role to play. 

Engage people in their health, even when they aren't sick in ways that are fun and meaningful and reward participation and achievement.

Promote effective and on going relationships.

- Recognize needs
- Find passion points
- Build on existing relationships

Hyperbolic discounting. E.g. we discount value of exercise today for it's future intangible benefit.
don't see benefit = Don't Do.

Incentives make people do something they wouldn't have done.

- Initial sign-up 
- Participation
- Long term engagement

The incentive has to match the value of the benefit and effort to participate.

"Facilitate Health"   - Be supportive not prescriptive
Meet People where they are.

Make Fun things healthy.

Foster entanglement.... Make it coo, Fun and drive Excitement to maintain engagement
e.g. involve the family.

Incentives: Tangible and Intangible

It's not just gift cards. Intangibles are important such as Recognition, Virtual rewards, acceptance, group competition and Social Responsibility.

We are competing against Madison Avenue. 

Don't forget the financial and actuarial rigor.

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