Coalition to Advance Health Care Reform

With 50 to 70 percent of the nation’s health care costs directly associated with behavior, it is surprising that prevention and incentives for healthy behavior aren’t a much greater part of employee health plans. Safeway has experienced firsthand how these programs can make a difference.

The company has implemented a consumer-friendly plan for non-union employees with prevention and behavior as core elements. Safeway’s healthy incentives program encourages employees to live healthier lives and be more responsible health care consumers. The plan provides financial incentives through health reimbursement and flexible savings accounts. It also fully covers an array of preventive care such as physicals, cancer screenings, and well-baby care.

Healthy behavior and good health care decisions are key components. Resources such as a 24-hour care-line and education tools help employees better manage their health care. Through incentives and education, more than 70 percent of eligible employees have signed up for the program, demonstrating that solutions exist that can serve as models for helping solve the nation’s health care crisis. This innovative program has resulted in total healthcare costs being reduced 15% in the first two years compared to an average 10% increase each of the previous years. As a result, participating employees experienced a 25 – 34% reduction in their annual total healthcare costs.