Insurers turning to incentives to promote healthy lifestyles

CAPITAL REGION — As Capital Region health insurers enter their crucial fall open enrollment period, they are increasingly courting prospective members with the catch phrase “Show me the money!”

With the economic downturn making consumers more spending-conscious, area health plans are rolling out new products that reward healthy behavior with monetary incentives.

The perks include reimbursements of up to $300 to cover everything from gym memberships to nights at the bowling alley. Other incentives include discounts and gift cards at national retailers such as CVS and Dick’s Sporting Goods.

“It’s not exactly new, but it’s the big thing this year. It’s the thing everyone decided has to be part of our plan if we’re going to interest the workers,” said Thomas Flynn, a principal with the Mercer employer consulting firm.

MVP Health Care this fall is beefing up its TriVantage product, an Exclusive Provider Organization plan that made its debut last January. It initially provided members with a $300 reimbursement for a limited range of activities, such as fitness club memberships, children’s swimming lessons and massage therapy.

Starting Jan. 1, the Schenectady insurer will provide members up to $600 in wellness incentives under the redesigned TriVantage. The new EPO still includes the $300 reimbursement but it can be applied to almost any kind of physical activity.

MVP members can also build up to $300 in credits by participating in a number of wellness activities, such as taking a health risk assessment, enrolling in a smoking cessation program and developing an exercise routine with a personal trainer. Each credit has a $1 value and can be put toward a check or gift cards at national retailers.

The $300 wellness credits are also available through MVP’s health maintenance organization, preferred provider organization and consumer-driven plans.

“Sometimes telling someone they should do something isn’t as effective as providing an incentive,” said MVP spokesman Gary Hughes.

With recent studies showing that up to 70 percent of people’s health care depends on behavioral — not genetic — factors, insurers and employers have increasingly been prodding workers to adopt healthier practices. That means insurers have been encouraging members to quit smoking, eat healthier foods and exercise more regularly.

Studies show insurers can reduce health care expenses by up to $7 for every dollar they spend on member incentives. Flynn said most insurers are not making plans more costly for employers through added monetary incentives because of the potential return in health care savings.

“We’re incentivizing our members to do healthy activities. It’s not just joining a gym … We want them to develop a habit,” said Jim Smith, senior vice president of commercial business at the Capital District Physicians’ Health Plan in Albany.

CDPHP next year will also roll out an incentive program called Life Points, which will be available through select EPO and PPO plans. CDPHP members start off building Life Points by taking an online health risk assessment, which affords them 50 points.

Using a secure CDPHP Web site, members can note health-related activities, such as getting a flu shot or participating in a CDPHP-sponsored community walk, which both amount to 10 points each. Each Life Point has a $1 value, and each member family can earn up to $365 in points annually. Points can be redeemed at hundreds of locations, such as Dick’s, L.L. Bean and SpaFinder.

Separately, CDPHP has issued to employer group and Medicare plan members CVS ExtraCare Health cards. The cards provide 20 percent discounts on CVS-brand products. The insurer is offering that benefit through its pharmaceutical benefits manager, Caremark Rx, which CVS Corp. acquired last year.

BlueShield of Northeastern New York is taking a slightly different approach in regard to wellness incentives. Like CDPHP and MVP, the Latham insurer on Jan. 1 will roll out a health-related activity point system.

However, BlueShield will not directly provide members with incentives. Instead, it will provide point data to employers, who can determine how to reward workers, said Lynette Jane, a BlueShield health promotions specialist.