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Driving Innovation In the Health Care Marketplace:

A CEO Report

Automatic Data Processing, Inc.

At ADP, we believe that if we approach our health with the same passion and focus that we bring to our clients, we can all lead a healthier lifestyle and, at the same time, contribute to the overall well-being of the company. A key aspect of sustaining this culture of health includes providing associates with options so that they can be engaged in making active decisions about maintaining and improving their health.

We offer our 35,000 associates nationwide access to broad-based health and wellness resources that provide options for how to maintain and improve their health. We provide a choice of two industry leading networks of health care providers and drive members to seek high-performing providers in their region through the promotion of cost transparency tools and centers of excellence. Also included within our health care benefits are access to care management and maternity, bariatric resource programs, and personalized nurse support for chronic and serious conditions, which enable members to optimize the efficiency and quality of their health care services.

In 2012, we introduced a Consumer Driven Health Plan (CDHP), which includes an annual company contribution into a health savings account. Over a three-year period, enrollment in the CDHP has grown from 39 to 50 percent , enabling half of our associates to become better health care consumers by providing greater control for how their health care dollars are invested and spent. This shared accountability has helped us keep our costs well below our industry peers.

Also in 2012, we introduced an incentive-based Wellness Program with a focus on rewarding associates for participation in health awareness-activities, including completion of a personal health assessment and biometric screening. I am happy to say that, after two years, we have seen improvements in stress, activity and diet reported by associates as well as blood pressure measurements. Tobacco use has also declined, supported by the Tobacco Free Workplace policy implemented at all ADP U.S. locations in July 2012. We extended eligibility for this program to include spouses and domestic partners in 2014. With the health-awareness framework in place, we aim to evolve to an outcomes-based program, providing rewards for maintaining healthy milestones or showing measurable health improvements. 

Valuing the well-being of our associates is at the core of ADP. Since 1992, we have managed onsite medical clinics, with health and wellness centers now found at nine ADP locations throughout the United States. These clinics are staffed by medical professionals and provide associates with access to emergency and primary care, laboratory services, immunizations, physical exams, ergonomic evaluations, and various health screenings, including the biometric screenings available through the Wellness Program. Managing these clinics has produced a positive return on investment when valuing the cost of comparable services plus productivity lost outside of ADP.

At ADP, onsite clinics, consumerism and associate engagement will remain essential to managing health care costs. We intend to build upon the robust platform that we have established to further simplify the health care decisionmaking process for our associates and will continue our multichannel communication campaign to raise awareness of innovative tools and services available through our health and wellness programs.

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BRT companies provide health coverage to more than 40 million Americans. We help American workers and their families remain healthy, receive quality treatment when necessary and achieve better health outcomes. The private-sector innovations in the insurance marketplace that enable us to provide these services to our employees and their families serve as models for public programs — but additional reforms are necessary.

This report highlights the innovations we have made and the public policy changes we believe would drive value by promoting health and improving outcomes.

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