Caterpillar

Healthy Balance

Description

Located in Peoria and Aurora, Illinois, Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines with over 77,000 employees worldwide and revenues of $30 billion per year. With healthcare costs at Caterpillar rising at double digit rates in the 1990s, and projected to exceed $1 billion by 2000, Caterpillar initiated a core program called Healthy Balance to provide consistency, direction and measurements in evaluating the effectiveness of healthcare interventions offered. The objectives of the Healthy Balance program are to reduce healthcare costs, improve the health of employees and to urge self-responsibility for health amongst employees.

Healthy Balance uses strong incentives to reward participants, including a reduction of $600 in employee health premium contributions. The program also utilizes health risk assessments; disease management programs, including personal counseling service provided by registered nurses and dieticians for participants with diabetes and heart disease; health fairs, medical departments staffed with physicians and registered nurses; smoking cessation programs; fitness and exercise programs; quarterly newsletters; and healthy food choices in the cafeteria and vending machines.

Outcomes:

• The Healthy Balance program retained 93% of incented employees and 62% of spouses in 2003.
• Over an 8 year period of time, Caterpillar has achieved a 400% - 500% return on investment.
• Average claims of participants were $700 lower than non-participants.
• Projected net savings from medical expenses of $700 million by 2015.
• Incidence of chronic and acute disease among employees, retirees, and dependents has declined.
• More than 1,100 participants have quit smoking since the program began.
• More than 4,700 participants have lost weight since the program began.

***For further information, please visit http://cathealthbenefits.cat.com.

Published: January 26, 2009