Safeway Healthy Incentives Solutions
“At Safeway we are reversing the national trend of rising health care costs through an innovative plan for non-union workers that pays 100% of preventive care, rewards good behavior and allows employees to take more control of their health care decisions. Through prevention and behavior incentives we have produced remarkable results for employees by providing a better, more comprehensive health plan with significantly lower out-of-pocket costs.” - Steve Burd, Chairman, President and CEO
Watch Safeway Inc. CEO Steve Burd Discuss Safeway's Healthy Incentives Plan and the National Healthcare Crisis.
Healthy Incentives Make A Difference
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.
Key Program Components:
• More Individual Involvement and Responsibility in Health Care Management
• Health Reimbursement Account and Flexible Spending Accounts
• Preventive Care Covered 100%
• Incentives for Healthy Behavior
• Free Wellness Programs
• Health Risk Questionnaire/Assessment and proactive care management programs
• Free 24-Hour hotline and on-line educational and counseling services
• Additional incentives to be offered in future years
• Started in 2006 with 44% of non-union workforce enrolling in the program. In 2007 enrollment has climbed to 71%,
demonstrating the success of the program.
• Strong Preventive Care Program with 100% coverage of annual physicals, well baby/child care and other age appropriate
procedures such as breast and prostate cancer exams, colonoscopies, etc.
• Effective Lifestyle Management Program that provides incentives for tobacco cessation, weight loss, stress reduction and healthy
• Employee health resources available with 24 hour health information hotline, chronic care management, health advisors, and
on-line education materials for employees.
• Incentives for Healthy Behavior that include premium discounts for healthy decisions and higher (based) premiums for