Success Continues with Enhanced Benefits Coverage

Robert Ihrie has helped Lowes create a comprehensive wellness program that fosters a culture of health and demonstrates real-life results for Lowe’s employees and bottom-line success for the company

Robert Ihrie has helped Lowes create a comprehensive wellness program that fosters a culture of health and demonstrates real-life results for Lowe’s employees and bottom-line success for the company.

Ihrie was promoted to senior vice president of employee rewards and service in August 2007. In this position, he is responsible for the strategic direction and supervision of all aspects of compensation, benefits, international human resources, human resources information systems, and payroll.

In February, Lowe’s announced an alliance with the Cleveland Clinic, in which Lowe’s full-time employees and their covered dependents enrolled in the company’s self-funded medical plan may elect to schedule qualifying heart surgery procedures at Cleveland Clinic at an enhanced benefits coverage level.

To take part in the program, the patient must be approved for the surgery in advance, healthy enough to travel and able to schedule the surgery at a future date. The program covers all medical deductibles and co-insurance amounts as well as travel and lodging expenses for the patient and a companion, plus concierge services to make the arrangements.

Lowe’s has been on the forefront of population health and wellness issues, recognizing the link between healthy employees and productive workers. In 2004, Lowe’s became one of the first retailers in the industry to offer a disease management program. The program currently includes annual health risk assessment, lifestyle management program, on-site clinics, behavioral health services, tobacco cessation with nicotine replacement, financial incentives, case and maternity management, health advocacy, value-based prescription drug benefits, and customized Centers of Excellence.

The company consistently identifies innovative solutions for its toughest employee health issues. Lowe’s is participating in a Guardian doctor pilot that directs 20% of the sickest members with chronic conditions to the highest-quality providers. It recently launched mobile health screening units that will provide biometric screenings to more than 1,300 locations across the country. Other programs include a FitLogix Pilot program for obesity, and a $4 generic prescription program to drive greater use of generic drugs among employees.

Lowe’s Life Track employee health and wellness program is an employee-driven, comprehensive program with strong support from company leadership. Results have been impressive and include:

The percentage of participants with zero to two health risks increased from 24% to 30%, while the percentage of participants with six or more health risks decreased from 17% to 13%.
The average number of health risks per participant decreased from 3.8 to 3.5, which represents a 7.7% change in status.
Participation in the 2009 health risk assessment was 78.5% for the copay plan group.

Because of the company’s unwavering commitment to employee health and wellness, health care costs are rising at just 3.4% per year, well under national averages and industry benchmarks of 6%. Health care costs for program participants increased by 4.5%, as compared to 22.9% for nonparticipants.

In addition to his position as senior vice president, Ihrie serves as secretary of the compensation and organization committee of Lowe’s board of directors.


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