Because much of IMA Financial Group Inc.'s expertise came from providing loss-control services in the workers comp arena, the middle-market broker introduced its health care cost containment program in 2007 as a “health risk management” rather than a “wellness” program.

Because the program begins with an analysis of claims data to identify health risks in an employer's population, followed by strategic loss-control efforts to mitigate or eliminate those risks, Robert Cohen, IMA's Denver-based CEO, immediately saw a parallel to workers compensation.

“In workers comp, if you invested in loss control, you could see your experience mod go down,” he said, referring to the experience modification factor insurers use to set premiums in guaranteed-cost comp programs.

That's why before IMA rolled out the program to its clients, Mr. Cohen insisted that it also include a way to measure the program's impact, similar to the “ex-mod” used by workers comp insurers.

“Originally we were going to call it the H-mod, but we thought it was too corny,” he said. Instead, IMA dubbed its innovative health risk management program “ibenefits,” with an emphasis on the “I” for the individual and “fit” for wellness. IMA also tested the program on its own population—it has 465 employees in Colorado, Kansas and Texas—before offering it to clients.

It operates similarly to safety incentive programs that reward employees for following safety protocols or reducing workers comp claims. While those incentive programs generally offer employees payment in cash, merchandise credits, gift cards, meals or entertainment, ibenefits enables employees to earn discounts on their health insurance premium contributions.

“Each event is worth a different number of points,” said Kyle Orndorff, senior vp of human resources for IMA based in Wichita, Kan.

For example, employees can earn 1,500 points for completing an online health risk appraisals and another 1,500 points for submitting their appraisal to nurses prior to on-site biometric screenings. Employees can earn 1,000 more points for bringing their biometric screening results to their doctors. The first 4,000 points equate to a $20 discount on an employee's monthly insurance premium. Employees earn additional points by participating in programs such as managing stress, quitting smoking or losing weight.

Employees also receive health risk scores based on the results of their biometric screenings. Employees who score 85 or higher and have earned at least 7,500 points receive an additional $15 per month off of their premiums, while those who receive 10,000 or more points receive a “premium holiday” each December. Employees can raise their health risk scores by improving their health status.

By providing incentives to employees to reduce their personal health risks, the program has lowered the cost of health care for the broker and its employees.

“We've seen reduced risk, improved health status, and had a nearly flat trend over three years,” said Gregg Kamas, vp and health risk management practice leader at IMA in Denver. In fact, IMA's health care trend—the rate of inflation in its health care spending—was just 0.7% in 2010, he said.

Moreover, “we now have data, and that's what this game is all about—proving that it can make a difference,” Mr. Orndorff said. “The medical claims of those who have participated are 39% less than for those that did not. This shows that those who have fewer health risks generate lower health care costs.”