INScompanies Blog

LifeWise announces novel Well-way™ program — insurer will cover up to two years of employers’ program costs for employees’ personal health assessments and personal health coaching

PORTLAND, OR — (June 14, 2006) — To help prevent costly illnesses and conditions that result from unhealthy lifestyles, LifeWise Health Plan of Oregon announced today encouraging results by employers adopting health risk management (HRM) programs — and introduced a new program, Well-way™, designed to dramatically accelerate the rate at which employers can build a culture of wellness in their workplace and inspire their employees to adopt healthier habits.

“We’re seeing more interest in HRM programs as a way for employers to address declining workplace health and rising healthcare costs,” said Mark Charpentier, CEO of LifeWise Health Plan of Oregon. “We’re launching Well-way™ as part of a larger effort aimed at twin goals of better health and more sustainable costs for our members.”

LifeWise announced the Well-way™ program, which will subsidize up to two years of HRM program costs for existing customer groups with 200 or more employees. The program includes annual confidential personal health assessments and personal health coaching as a way to jump-start efforts to improve employee wellness in Oregon.

“Just as we see in the national trends, Oregon’s health challenges have never been greater,” said Charpentier. “We’re watching increased rates of obesity, diabetes and other preventable conditions combined with decreased amounts of physical activity put more people at risk for declining health.”

Data involving results from three major corporations served by LifeWise’s affiliates shows a clear opposite, positive trend. The first year HRM results from these employer groups demonstrate that every employer saw significant improvement in a single year for employees identified as high risk, while keeping moderate to low risk groups from moving into the high risk category.

“Personal health assessments and personal health coaching work. These results, in context with longer term studies, are exceptionally encouraging,” said Eric M. Wall, MD, MPH, LifeWise Medical Director. “We’re seeing a dramatic improvement in wellness in a short period of time.”

Other studies show a strong correlation between improved wellness scores and fewer sick days, increased productivity and reduced health-care costs for the employer, Dr. Wall noted. “We are hopeful Oregon employer groups will take a similar track,” Dr. Wall said.

“We expect that Well-way™ will allow more employers to take the important first step to building a culture of wellness in their workplace.” said Charpentier.

About LifeWise Health Plan of Oregon
LifeWise Health Plan of Oregon is a member of a family of companies with operations in Portland and Bend, Oregon; Mountlake Terrace and Spokane, Washington; Anchorage, Alaska; and Scottsdale, Arizona. LifeWise and its affiliates employ about 3,000 people and provide health-care coverage and related services to 1.5 million subscribers and their families.

CONTACT:
Deana Strunk
LifeWise Communications Manager
(541) 318-2071
(541) 318-2309 fax

58% of New Individual Members were Previously Uninsured

MOUNTLAKE TERRACE (April 28, 2005) - - Innovative benefit plan designs for individuals and families with difficulty affording more traditional health plans are also improving access to health coverage for the uninsured, based on the experience of LifeWise Health Plan of Washington.

In the first quarter of 2005, the company enrolled more than 12,458 new individual members — a 79 percent increase over first quarter 2004. In the first quarter of 2005, 58 percent of those new enrollees reported they had been without health coverage for at least two months at the time they applied. This is up from 42 percent of new members in the first quarter of 2004.

Uninsured consumers are responding to new benefit-design options launched in 2004 by LifeWise Health Plan of Washington.

In April 2004, the company rolled out a range of high-deductible individual plans coupled with tax-advantaged Health Savings Accounts (HSAs). More than half (51%) of new members buying HSA plans in the first quarter of 2005 were previously uninsured.

In October 2004, LifeWise launched its Essentials™ family of products with a variety of different deductibles, member cost-sharing, and first-dollar coverage options that include cancer screening in some plans, and multiple office visits in others. Through March 2005, 61 percent of new Essentials members were previously uninsured.

“We’re seeing a marked gain in new individual members, and it is clear that these new members see these plans as successful alternatives to going without health coverage,” said Gubby Barlow, Chairman of LifeWise Health Plan of Washington. “By offering a diversity of affordable choices, we’re clearly reaching people we couldn’t reach before.”

LifeWise of Washington individual membership grew by 29 percent in 2004, from 49,000 to 67,000 — “in large part by creating better access to affordable health coverage for people without insurance,” Barlow said. “That’s clearly good for our members, good for LifeWise, and good for physicians and hospitals because it helps reduce the amount of uncompensated care.”

Essentials 25™ is characterized by very low monthly premiums (roughly $50 per month for a member in their 20’s), and deductibles of $1,500 or $2,500 with 25 percent co-insurance. Unlike typical catastrophic plans, Essentials 25 also covers three office visits per year, as well as cancer and cholesterol screenings.

“For years, consumers have asked for a plan that protects against catastrophic risk, while providing some meaningful up-front benefits at a price they can afford,” said John Mychalishyn, Director of Consumer Sales and Marketing for LifeWise Health Plan of Washington.

Another Essentials product, called Essentials 50™, offers deductibles from $500 to $2,000, with 50 percent coinsurance and out-of-pocket maximums (including deductible) from $2,000 to $4,000. All Essentials 50 plans waive the deductible for cancer screenings, and maternity care is available with the lower-deductible options.

“Interest in these products is clear,” said Fred Green of GreenFinancial.com in Kirkland, WA. “People are attracted by the significantly lower premium costs and the needed protection for catastrophic health problems. These plans are popular with the self employed — real estate agents, contractors, mechanics, architects, and more. Economically, it works for many people,” Green said.

“The Essentials 25 plan also is being selected by employees who are finding the group premiums they are required to pay for their families are too expensive. It can be the difference of $700 to $800 a month to cover four dependents on a company plan, or $190 with Essentials 25,” Green said.

“One size does not fit all, and a diversity of benefit options can appeal to a wide variety of people,” noted Sheri Ferguson, who heads up the individual insurance department for The Meacham Group in Kirkland, Washington. Ferguson observes that the Essentials 25 plan has special appeal for people in their twenties “who think they don’t need insurance, and will live forever.” In many cases, Ferguson said, parents are behind the choice — and are paying the premiums after their children are no longer eligible for dependent coverage.

John Stupey, owner of the Stupey Agency in Everett, Washington, says the Essentials 25 design appeals to people who can’t afford to go unprotected. “It’s also appealing to people who have either lost coverage at work, or whose employer coverage doesn’t cover spouses or children,” he said. “The real key is being able to see the doctor a few times. That’s very appealing in a catastrophic plan. The approach allows some leeway for people to protect themselves. The bottom line is that you don’t have to hang on to an illness until you’re really sick.”

For more information: http://www.lifewisewa.com/visitors/product_info/about.asp

LifeWise Health Plan of Washington is a member of a family of companies headquartered in Washington state, with operations in Mountlake Terrace and Spokane, Washington; Portland and Bend, Oregon; Anchorage, Alaska; and Scottsdale, Arizona. LifeWise and its affiliates employ about 3,000 people and provide health-care coverage and related services to 1.5 million subscribers and their families

CONTACT:
Scott Forslund
Communications Director
(425) 918-5070 office
(425) 280-1653 cell

Chris Jarvis
Communications Manager
(425) 918-3368 office
(206) 714-4010 cell

EVERETT, WA (December 17, 2003) — Starting Jan. 1, 2004, LifeWise Health Plan of Washington’s Medical Savings Account (MSA) Share health plan, previously available only to qualified self-employed individuals, will become available to all individuals and will be fully compatible with the newly authorized Health Savings Accounts (HSAs).

Under federal legislation signed into law last week week, consumers will be able to open HSAs – tax-exempt savings accounts that can be used to cover medical expenses. Previously, federal law allowed only small groups and self-employed individuals to take advantage of what were called Medical Savings Accounts, which were created on a pilot basis during the 1990s. The new HSAs have a variety of improvements over their older MSA counterparts, including higher contribution limits and greater availability. Consumers who currently have MSAs will be able to easily convert their existing accounts at no cost into new HSAs.

LifeWise’s existing MSA Share plans are HSA-qualified and offer $1,700 and $2,500 deductible plans for individuals as well as $3,400 and $5,000 deductible plans for families.

HSAs work hand-in-hand with the high-deductible and less expensive health plans. By taking advantage of new tax laws, individuals can use the new coverage to reduce their total health-care outlays compared with conventional coverage.

For instance, by purchasing a $3,400 deductible LifeWise HSA-qualified health plan, a 40-year-old husband, wife and two children with annual medical expenses of $1,000 could save $3,051 annually in out of pocket expenses over a $1,000 deductible Preferred Provider plan. It would also leave them with $2,400 in their interest-bearing HSA account to roll over to the next year for future expenses.

“Basically, this design lets people keep their money in their own pockets for as long as possible,” said Jeff Roe, President and CEO of LifeWise Health Plan of Washington. “What they don’t spend on medical care grows tax-free in their own savings account.
“Consumers are demanding increased options in their health-care. This combination of a high-deductible LifeWise medical plan and an HSA gives them more control over their health care dollars, putting them in the driver’s seat,” said Roe. “We have been a leader in providing this option to members and now, more people than ever before will enjoy significant tax benefits and peace of mind.”

In order to streamline the process for members, LifeWise partners with MSA Bank, an FDIC insured financial institution. MSA Bank maintains existing MSAs and will offer new the HSAs, which become available Jan. 1, 2004. The bank will assist members who want to roll over their existing MSAs into the new HSA savings accounts.

LifeWise Health Plan of Washington is a member of a family of companies headquartered in Washington state, with operations in Mountlake Terrace and Spokane; Portland and Bend, Oregon; Anchorage, Alaska; and Scottsdale, Arizona. LifeWise and its affiliates employ about 3,000 people and provide health-care coverage and related services to 1.5 million subscribers and their families.

CONTACT:
Scott Forslund
Communications Director
(425) 918-5070 office
(425) 280-1653 cell

Chris Jarvis
Communications Manager
(425) 918-3368 office
(206) 714-4010 cell