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Driving Innovation In the Health Care Marketplace:

A CEO Report

Northrop Grumman Corporation

Northrop Grumman Corporation, a leader in the aerospace and defense industry, is dedicated to achieving sustainable top performance for our shareholders, customers and employees. A critical element of this commitment is ensuring that our culture provides an environment that motivates and engages all of our employees. We continually assess employee engagement levels and develop action plans to address opportunities most important to employees. 

Employee wellness is another important aspect of performance and we provide wellness programs and services that empower employees to make informed health care choices and engage in healthy lifestyles. These programs include HealthWaves, a comprehensive company-wide health promotion program that helps employees recognize potential health issues and achieve specific health goals. HealthWaves provides education, fitness programs, one-on-one health coaching, flu vaccinations and other services at most company worksites. 

Other Northrop Grumman wellness programs include: 

  • Quit 4 Life, a telephone-based tobacco-cessation treatment program that includes sessions with a professional “quit coach.” Since the program’s inception in 2009, more than 3,500 participants have registered. The program has generated a 95 percent satisfaction rate. Employees receive a monthly medical premium credit of $25 for not using tobacco. 
  • Virgin Pulse, an innovative and fun way to encourage, measure and reward physical activity and healthy lifestyle choices. Twenty-four percent of employees participate. 
  • Weight Watchers, for which employees receive special discounted fees with extra reimbursement incentives. Since this program’s inception, more than 3,000 employees have achieved and sustained weight loss. 
  • Best Doctors, a proprietary medical diagnosis service that provides patients facing major medical decisions with a second opinion and access to the best medical minds in the world. Best Doctors ensures that patients make the right medical choices while minimizing risk and cost for patients and the company. 

Northrop Grumman introduced a consumer-driven health plan (CDHP) with a health reimbursement account in 2004. The CDHP provides employees with better transparency regarding the total cost of health care services than traditional preferred-provider coverage, thus helping employees make more informed decisions. 

For 2014, Northrop Grumman has reshaped our health care options, offering only consumer-driven plans (and HMOs in markets with limited in-network access). These new plans will increase employee participation in CDHP plans from approximately 30 to approximately 85 percent and will positively impact cost control for both the company and individuals while supporting employees flexibility and individual accountability for their health care decisions. 


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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.