John Hancock's version of the Vitality wellness program could end up influencing how members of Congress think about health care.
The House Ways and Means health subcommittee brought Brooks Tingle, the chief executive officer of John Hancock, to Capitol Hill last week to testify at a hearing on modernizing the U.S. health care system.
Ways and Means helps oversee Medicare and Medicaid, two of the world's biggest health insurance programs, and it's keenly interested in ideas for holding claims down.
John Hancock has tried to improve its insureds' health by using financial rewards and games to persuade them to exercise, get enough sleep and get checkups. One feature is a 25% discount on fresh fruits and vegetables at about 61,000 grocery stores.
"That's an investment for us, but we make that investment because of the importance of nutrition, and because we know that, in the years that follow, we'll see better health outcomes," Tingle said.
John Hancock has also been an early promoter of getting the insureds access to screening tests such as the Galleri test, which sends samples of blood through screening machines to look for traces of the DNA bits created by some cancer cells.
What it means: Health savings account bills, flexible spending account bills and other bills that cross health policy with tax policy could be more likely to include provisions based on John Hancock's wellness program.
The financial incentives: Tingle told the committee that life insurers and other insurers with long-term relationships with their insureds may have a stronger interest in wellness programs than insurers with short-term relationships with the customers.
"Whereas many others who have a vested interest in the health of Americans, like health insurers, employers and many others, have relationships with individuals that last only a few years, our relationships with our customers average decades," Tingle said. "Not long ago, we paid a claim where the individual had been a customer for 99 years. This gives us the opportunity to realize the long-term financial benefits of investments in things like prevention and early detection of health problems."
When life insurance policyholders live longer, the investments supporting their life insurance benefits stay invested longer, and the insurer can earn more, Tingle said.
"If you own life insurance," Tingle said, "aside from your friends and family, let me assure you, no one else wants you to live a long, healthy life more than I do, and more than our industry does."
The questions: What House members at the hearing said could be an early indicator of what kinds of health insurance bills could show up and, possibly, reach the House floor.
Rep. Vern Buchanan, R-Fla., the chairman of the subcommittee, asked Tingle about the idea that the wellness programs align the incentives of insurers, employers, employees and customers and pay for themselves.
Rep. Brian Fitzpatrick, R-Pa., asked about the impact of wellness incentives and activities. He promoted a bill that could create a new kind of health account that could help workers save for wellness activities and preventive care.
Rep. David Kustoff, R-Tenn., asked about barriers to use of the Galleri cancer screening test. Tingle reported that some doctors are not sure of the value of the test and discourage patients from getting it.
John Hancock CEO Brooks Tingle. Photo: House Ways and Means Committee
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