Like many fully insured midsize em-ployers, Event Network Inc.'s health benefits budget was hemorrhaging.

Despite having a mostly 30-something workforce and company support of healthy lifestyles, the San Diego-based niche retailer could not prove to its insurer that it should not be paying rate increases ranging between 9% and 12% each year because its experience was pooled with that of other employers in the Southern California market.

But Meredith DeMartino, executive vp of talent development at Event Network, knew that if she could obtain meaningful health and utilization data from her insurer, and identify and address the health care cost drivers with targeted programs promoting health, she might be able to slow the bleeding.

So in 2008, Ms. DeMartino joined forces with her broker, wellness plan providers and a new health insurer that was willing to share Event Network's experience data to form what she calls “Partners in Wellness.” The resulting program was so successful that she was able to roll back the company's April 1, 2011, health insurance renewal premiums to 4.8% below what they had been the year before. In addition, Event Network's insurer, Blue Shield of California, provided an additional $10,000 in funding to support the company's wellness initiatives.

Moreover, health risk assessment results showed that employees were becoming more physically active, tobacco use was diminishing, the number of health risks was declining, and employees were happier and much more satisfied with their jobs.

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At the same time, absenteeism had fallen, with the number of individuals taking five or more sick days down to 2% in 2011 compared with 8% in 2010. Voluntary turnover also plummeted to 3% in 2011 from 11.5% in 2008, the year Ms. DeMartino launched her wellness initiative.

By being able to document the return on investment in the company's wellness plan in financial terms and productivity enhancements, Ms. DeMartino easily persuaded Event Network's leadership to reinvest those savings in an innovative new corporate campus that would serve as the foundation for a long-term wellness strategy that would support the company's continued growth (see related story).

“You have to understand your audience and change the delivery of the message accordingly,” Ms. DeMartino said. “Not only does it affect premiums, it also affects retention, recruiting, engagement, productivity. There's so much that goes into it.”

And by empowering Event Network's greatest asset—its employees—to adopt healthier work- and lifestyles, the company that started as a single store with the traveling Titanic exhibit in Boston in 1998 has grown to more than 70 locations across the United States and Canada, recently opening its first European store in Lisbon, Portugal. It has 1,260 employees, more than 350 of whom have come on board since 2008.

“Wellness really is a strategic decision. It needs to be part of the larger business acumen and culture. Wellness touches every part of business, not just health and benefits,” said Ms. DeMartino, who was named Business Insurance's 2012 Benefit Manager of the Year^® for her accomplishments.

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Reflecting this philosophy, Ms. DeMartino has made sure wellness initiatives at Event Network are available to every employee, even those in the most far-flung locations, regardless of whether they are enrolled in the company's health benefits plans.

In fact, even though only 353 employees and dependents are covered by the company's health plans, more than 500 employees companywide participated in last year's “Walktober” event in which individuals and teams could earn prizes for chalking up the most minutes of activity (see related story).

And many of the company's wellness initiatives are only peripherally connected to health care, fostering personal growth through social interaction and community service (see related story).

“When we look at wellness, it's a lot more than the traditional elements,” Ms. DeMartino said. “It's also about personal and professional development, as well as community outreach.”

Nearly every one of the company's 85 headquarters employees undergo biometric testing and complete health risk assessments during the company's health fairs each spring. Employees working in Event Network's stores are encouraged to visit off-site medical centers, where they receive the same testing at no cost to them.

Employees companywide are encouraged to participate in wellness competitions and promotions that are conducted online.

Despite all of these investments in wellness and health promotion, Event Network is continuing to keep costs in check, experiencing only a 6.9% increase in 2012 compared with a regional average trend rate of 11%.

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“Blue Shield recognizes this client as being proactive with employee health, and therefore it has afforded them a greater ability to negotiate their renewal and to request wellness funds,” said Beth Taylor, senior consultant for health and performance at Intercare Insurance Solutions in San Diego, Event Network's insurance broker.

Ms. Taylor said Event Network and Intercare also have negotiated with the health insurer to obtain additional data reports with more detail on prescription drug utilization, diagnoses and large claims, as well as an additional $10,000 in wellness funding.

Blue Shield declined to comment.

“We're ahead of the curve now,” said Ms. DeMartino. “Our company's renewals are the polar opposite of what other employers in the region are experiencing.”

Not resting on this success, Ms. DeMartino still explores new and often unconventional ways to improve employee health, such as providing daily meditation breaks, chef-led healthy cooking classes and community garden plots.

Ms. DeMartino said her next step is to engage spouses, dependents and even the roommates who make up Event Network employees' support systems.

Some might go so far as to say Event Network's holistic approach to wellness is actually slowing the aging process among its employees. Though the average age of employees in 2011 was 38, their “health age”—a measurement based on lifestyle choices and health risks—is just 36.6 (see related story).

For wellness to be successful, “it has to be part of your business plan,” said Ms. Taylor.

Event Network Inc.

BUSINESS: Leading operator of gift shops for zoos, aquariums, museums, science centers, botanical gardens and other nonprofit cultural attractions.

FOUNDED: 1998

HEADQUARTERS: San Diego

2011 FINANCIALS: Annual sales of $145 million

EMPLOYEES: 1,250

Did you know:

• Event Network has 70 stores in United States, Canada and Europe.

• First store was housed in a tent outside the traveling Titanic exhibit in Boston.

• Notable partnerships include the John G. Shedd Aquarium and the Museum of Science and Industry in Chicago; the Abraham Lincoln Presidential Library and Museum in Springfield, Ill.; Ford's Theater and Washington National Cathedral in Washington D.C.; Gettysburg National Battlefield Museum; Garden of the Gods in Colorado Springs, Colo.; Mob Museum in Las Vegas; and the Titanic and Harry Potter traveling exhibits.

• First European partnership in 2012 was with Oceanário de Lisboa in Lisbon, Portugal.