SOURCE: Incentive Logic

September 12, 2006 20:30 ET

Incentive Logic's Healthcare Incentive Programs Show Promising Results for Employers and Employees

SCOTTSDALE, AZ -- (MARKET WIRE) -- September 12, 2006 --Two converging trends increasingly put employers and employees into partnership regarding their health: employers pay much more for health care and the burden of healthcare costs weighs heavily on employees. Incentive Logic is having early success forging that partnership while helping clients reduce medical claims, absenteeism, and other costs related to employee health care.

"Early results are promising," says Roger Hackett, CEO of Incentive Logic, "Our client programs are recruiting participants at a high rate, and many are joining health programs that will help them develop positive health habits."

The Employer Health Benefits 2005 Annual Survey sponsored by the Kaiser Family Foundation (KFF) revealed, "Since 2000, premiums for family coverage have increased by 73%, compared with inflation growth of 14% and wage growth of 15%."

At the same time, employees are struggling with the transition. A December 2005 Kaiser Public Opinion Spotlight reported, "Nearly one-quarter (23%) of adults report problems paying medical bills within the past year, and more than six in ten of these (61%) have health insurance."

The industry recognizes prevention as key to reducing health problems. Insurance companies are working with employers to increase the early detection and prevention of disease. Now, as employees take on more healthcare costs, they participate more.

Incentive Logic's programs combine education and rewards to increase participation in healthcare initiatives and to encourage healthy lifestyles. Along with its IGNITE points solutions™ that help clients develop tailored incentive programs, Incentive Logic provides another key innovation: using sweepstakes to encourage participation while keeping program costs low.

"With health care, one of the biggest problems is getting people to stay involved over time -- to come back to the site and stay involved. Sweepstakes, when properly managed and timed as part of a more comprehensive program, are a highly effective motivation for participation," said Phil Leger, VP of Operations at Incentive Logic.

For healthcare clients, Incentive Logic integrates its IGNITE points solutions with the clients' own education programs and knowledge bases. Employees customize the program to their unique needs and interests. Most programs employ anonymous health risk assessments (HRAs) that provide employees with a personal report revealing areas they need to watch or work on. The report also suggests programs that will help them meet their goals.

The employee then receives point rewards at waypoints in their program. Incentive Logic designs the waypoints to maximize participation over time. Along the way, employees receive education, tips, and coaching through articles and e-mail reminders as well as access to wellness information.

Whether by earning rewards through key healthcare actions or winning a sweepstakes, employees redeem using GiftFolio™, an on-line catalog that allows them to choose their own reward from a profile-based set of merchandise. The high trophy value of the reward, along with promotion of sweepstakes winners on program's web site further encourages participation.

About Incentive Logic, Inc.

Incentive Logic, Inc. works with businesses to develop performance-based rewards programs that help them achieve their goals. By combining business intelligence with a next-generation software platform, they help clients target key performance indicators through tailored incentive solutions that ignite performance. Founded in 1998, Incentive Logic, Inc. is a privately held company headquartered in Scottsdale, Arizona. 1-480-776-0800.

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