Blue Shield of California Gives Holiday Cheer to Members

Not-for-Profit Health Plan Rewards Members with Cash for Adopting Healthy Lifestyles

Blue Shield of California is making the holiday season a bit more merry by giving cash rewards to members who participated in the not-for-profit health plan's Healthy Lifestyle Rewards program in 2005. Checks totaling more than $338,000 will be mailed this week to 2,000 program participants as a reward for engaging in healthy behaviors, which could include quitting smoking, losing weight, reducing stress and eating better. The rewards, mostly $200 checks, are scheduled to arrive during the holidays.

Currently completing its second year pilot program, Blue Shield's Healthy Lifestyle Rewards is designed to help members reduce unhealthy habits that can lead to chronic diseases and high health care costs. The program has used financial incentives, interactive health promotion and online tracking tools to encourage participants to change behaviors that have the greatest impact on healthy living.

"Healthy Lifestyle Rewards has encouraged our members to adopt and maintain healthy behaviors and has provided them with rewards for using practical tools that promote well-being," says Deborah Schwab, RN, MS, Blue Shield director of new product development. "The program also saved money for employers by lowering the cost of medical claims."

Blue Shield is the first health plan to offer cash to members who adopt healthy behaviors. Participants registered for Healthy Lifestyle Rewards through the Blue Shield of California website, www.mylifepath.com, where they filled out a health assessment. The resulting individual profile showed both where the participant was doing well and where lifestyle changes could help. The program offered walking trackers, meal planners, stress-management and tobacco-abstinence tools. To earn money - from $75 to $200 depending on duration of participation - an enrollee needed to record their healthy lifestyle activities on a weekly basis.

"I was motivated by a $200 reward but I have been rewarded with a healthy life. I feel better about my body and I now work out six days a week," said Charmaine Jackson, Healthy Lifestyle Rewards participant. "I cook healthier and am reinforcing the lifestyle to my children. Healthy Lifestyle Rewards changed my outlook on life."

Blue Shield has provided more than 3,100 members with checks totaling more than $500,000 as a reward for their efforts. The most popular program offerings, "Weight Loss" and "Get In Shape," were chosen by 36 percent of participants who lost a combined total of 14,319 pounds.

To measure the effectiveness of Healthy Lifestyle Rewards, researchers from Stanford University studied participants' medical claims to establish the impact of the program on health care utilization and costs. Researchers found substantial savings of $238 and $161 per participant annually, PPO and HMO respectively.