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Organization Behavior

by: Clementina Hoeger

Organization Behavior MGMT 6600

Clementina Hoeger
GPA 3.58

Leigh Clark

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About this Document

Leigh Clark
Class Notes
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This 4 page Class Notes was uploaded by Clementina Hoeger on Wednesday September 23, 2015. The Class Notes belongs to MGMT 6600 at Middle Tennessee State University taught by Leigh Clark in Fall. Since its upload, it has received 34 views. For similar materials see /class/212927/mgmt-6600-middle-tennessee-state-university in Business, management at Middle Tennessee State University.


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Date Created: 09/23/15
Journal of Critical Incidents Volume 3 38 SCR THE SOCIETY FOR CASE RESEARCH ALABAMA S FAT TAX Asbjorn Osland San Jos State University Pamela Wells San J os State University William Jiang San Jos State University This critical incident was prepared by Asbjorn Osland Pamela Wells and William Jiang of San Jose State University and is intended to be used as a basis for class discussion The Views represented here are those of the authors and do not necessarily re ect the Views of the Society for Case Research The authors Views are based on their own professional judgments The name of the marketing manager has been disguised to preserve her request for anonymity but all other names are genuine Cassidy Talmadge the Marketing Manager for the Alabama State Employees Insurance Board ALSEIB was in charge of the public relations aspects of ALSEIB s wellness program She was taken aback that some of the media reports had been so critical when her employer thought that it was trying to help employees The media had sensationalized the program by referring to it as a fat tax How can she take the offensive and draw positive attention to the program She would have to wait a few months for success stories to develop but she wondered what she could do to get the word out regarding such testimonials Description of the Program ALSEIB wanted to find ways to reduce health insurance costs so it launched a wellness program Employees received a 25 discount toward their health insurance premium if they did the following o Participated in wellness screenings to check four risk factors blood pressure cholesterol glucose and body mass index And if found to be at risk for one or more of the four risk factors they agreed to address their risk in one of four ways 1 See physician for treatment instruction on how to address the risk 2 Participate in the Weight Watchers at Work program offered through the ALSEIB 3 Join a YMCA facility that participates in the YMCA Presented to and accepted by the Society for Case Research All rights reserved to the authors and SCR Copyright 2010 by Asbjorn Osland Pamela Wells and William Iiang Journal of Critical Incidents Volume 3 0 Network offered through the ALSEIB and 4 Address the risk with self administration under this scenario the employee would need to show progress in order to continue receiving the discount Alternatively they could have obtained a doctor s excuse if there was a medical reason for nonparticipation Employees were also eligible for a 30month discount if they didn t use tobacco products Coupled with the 25 discount for the wellness screenings and follow up if required the employees could have reduced their health premium to 15 monthly for a single employee after discounts When asked about the program in March 2009 Cassidy believed that although there was some misunderstanding early on members proved happy with the program when it was properly explained She stated It39s just a matter of explaining that as long as they are addressing their health risk they will not be charged the premium And we are spending a lot of time explaining that obesity is not the only risk factor being screened Someone with a perfectly healthy BMI may be deemed at risk for hypertension making them subject to the premium We are doing our best to convey that obesity is not the ONLY health risk focus in this program Blood pressure cholesterol glucose and tobacco use were the other health risks typically covered by wellness programs Cassidy said that the media had been the biggest problem in the roll out of the program The wellness program was sensationalized by being called a fat tax which was a mistaken interpretation of the discount process The State Employees Association an employees union had been supportive of the program Cassidy explained If the member is found to be at risk for any of the four risk factors they are provided a referral to visit a physician along with a copay waiver form So even if they are at risk they are able to go to their own personal physician with no copay and address the issue In addition we offer the Weight Watchers at Work and YMCA memberships at discounted rates whether the member is at risk or not She added in my opinion the biggest misunderstanding is that if you are at risk for any of the four risk factors you will not receive the discount When in fact if the member is at risk and they address this issue w their physician or through one of the SEIB approved programs YMCA or Weight Watchers they will receive the discount 39 Journal of Critical Incidents Volume 3 On November 18 2009 she stated that 93 of38000 members had been screened Many that were found to be at risk did not know so What the program needs is a few years of claims 4 information to show its savings To date personal communication April 19 2010 Cassidy reported The wellness program has gone really well Everything and everyone has been unbelievably cooperative and understanding The screenings are going more smoothly than ever and members actually call us now to nd out when their next screening is scheduled It s almost as if it s become a necessary part oftheir life We are also learnng so much about what employees are doing to lessen their conditions There are diet and exercise programs that we have seen employee s success exceed expectations So we are now in a learning process of what we should consider offering or supplementing for our employees The ALSEIB in collaboration with the Auburn University Harrison School of Pharmacy Clinical Education Center has a wellness center that includes a pharmacy and health center that is dedicated to the wellness of its active and retired state employees The SEIB Wellness Center allows state employees to receive free wellness screenings monitor their current health risk and utilize the pharmacy located in the Wellness Center A nurse practitioner will also be available in the upcoming months to address minor illnesses for ALSEIB members ALSEIB s program provided the following services 0 medical and lifestyle histories used to screen individuals at the worksite and provide followup 0 testing such as blood pressure glucose and cholesterol evaluations with professional health counseling follow up 0 administration of u shots BMI calculation and 0 Wellness Center and Pharmacy dedicated specifically to the wellbeing of ALSEIB members William Ashmore in the Media In an Auburn Alabama newspaper article Limerick September 18 2008 William Ashmore the ALSEIB CEO stated that the wellness program was voluntary We re doing this as an incentive to get employees to participate in the screening It s a voluntary program and the vast majority of employees are appreciative of these programs The objective is to get as many employees as possible to go through the screenings and for people to understand what risks they have The main focus of this program is on making each individual employee healthy Healthy employees cost the health plan less We would have never gotten the employee association to endorse this program if it discriminates against employees I fully expect to see more and more Journal of Critical Incidents Volume 3 41 states do similar plans We already have numerous states call in on a daily basis asking questions about how do we do it sic looking at doing something similar to this Any program of this nature has to be focused on improving the health of employees In a CNN interview Sloane December 9 2008 Ashmore added Over 10 percent of the people we screen are at risk for one of the factors we re screening for and the vast majority had no earthly idea they were at risk A healthy employee will cost the program less money What we want to do is number one make the employee aware of any risk factors they may have and then knock down the barriers so that they can go get the services they need What should Cassidy do to promote the Wellness program Cassidy hoped the furor regarding the fat tax misrepresentation of the wellness program and premium discount was over She wondered How can we avoid such misunderstanding and the accompanying negative publicity in the future If the State of Alabama saved money on health costs the legislators ALSEIB state government and the public would be happy but the first evaluation was more than a few years off She knew that testimonials could prove encouraging to prospective participants The quicker changes could be smoking cessation and weight loss for those that dramatically reduced caloric intake and increased their exercise regimen People can lose three pounds or more per week for months if obese and under medical supervision She would have to wait a few months but she wondered what she could do to get the word out regarding such success stories References Limerick G 2008 September 18 Alabama initiates new health care plan Auburn Statesman Sloane M 2008 December 9 Alabama to link premium costs to workers health CNN Talmadge C 20092010 Numerous personal email exchanges


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