Case study: Affinia Group

Improving employee health.

In it for the long haul.

When it comes to the health of its employees, Affinia Group, Inc. is in it for the long haul. With more than 5,000 employees and dependents covered under its benefit plan, the company has successfully established and nurtured a culture of health that’s paying off in health outcomes and financial savings.

About Affinia Group
  • Based in Ann Arbor, Michigan
  • Automotive parts manufacturer
  • 9,500 employees worldwide with nearly 3,800 in the United States.
     
The challenge
Like employers of all sizes, Affinia was becoming increasingly alarmed with company spending on employee health care. In 2000, the company spent $3,813 per employee per year. By the end of 2003 that number had nearly doubled to $7,576. Company executives knew they had to reverse this trend and hold the line.
 
Paradigm shift
Management knew they could shift more costs to employees (like higher premiums and deductibles) for a quick fix. But they knew they had to address the root of the problem: unhealthy employees (and dependents) who use more health care.

The new strategy was to embrace best practices in integrated health management to reduce costs and improve employees’ health and productivity. Affinia’s commitment to this new paradigm was so strong, they even changed the corporate mission statement to reflect a new core business value of health.

Bringing new commitment to life
In 2003, Affinia chose StayWell Health Management to serve as its health management vendor of choice. StayWell’s big-picture strategy included onsite health screenings, a health assessment and follow-up lifestyle change programs (among other behavior change tactics) to help reduce health risks. 
 
Gaining momentum
After a strong initial health assessment completion rate of 94 percent, Affinia implemented a full-replacement consumer-directed health plan in 2004. In tandem with this new plan, they also established a corporate Partners in Health Covenant along with incentives for wellness program participation. By signing the covenant, employees and spouses received a $1,000 lower premium and a generic-only drug card that was not charged against their health plan dollars. These two incentives bumped Affinia’s wellness program participation rate to 99 percent.
  
Real life results. Real savings.
From 2003 through 2007, StayWell helped Affinia achieve real results with an amazing reduction in the number of at-risk employees, improved outcomes and significant health care savings. Take a look.
 
Reduced risks
2003
2006
2007
Percent of high risk employees   33%   14%   10%
Percent of high risk employees
who changed to moderate risk		   55%   65%   65%
Percent of moderate risk employees
who changed to low risk		   12%   21%   27%

 Cost savings
  • The generic-only drug card incentive reduced the annual drug spend by about 25 percent. This savings alone is two times the entire cost of Affinia’s workplace wellness program.
  • The five-year compound annual average growth rate in medical claims cost is only 1 percent.
  • Company-paid health care costs per person, per year were impressive against industry averages:  
     
    2003
    2008
    Percent
    change
    Industry average
    $5,100
    $7,272
    +43%
    Affinia Group average
    $7,589
    $7,950
    +1%
     
Keeping health top of mind
Affinia’s visible leadership commitment to best practices in health management truly serves as the company’s flagship for better health. Realizing that employee health is a long-term investment, not just a short-term expense, top executives and the benefits team stay informed about the health of Affinia employees and dependents. StayWell provides monthly, quarterly and annual reports to keep management in the know.
 
Good health all around
Leadership’s commitment to health as a core business value has forged a true partnership between eligible participants and company management. Not only has this improved the health and productivity of Affinia Group employees and dependents, but it also has provided a healthy outlook for the company.

Testimonial

 
“StayWell Health Management has been a pivotal partner in helping Affinia Group deploy health management programs and support a culture of health. Their best-practice expertise helped us achieve amazing outcomes, resulting in the improved health status of our people and allowing us to hold the line on health care costs.”
 
Bob Soroosh
Director of Benefit Administration
Affinia Group Inc.
 

Fact

 
Between 2003 and 2008, employer health care costs averaged a 43 percent increase. Affinia Group’s costs only increased by 1 percent.
 

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