The Value of Wellness
In addition to cost containment, the value of a wellness program includes enhanced employee engagement and camaraderie when programs encourage mutual participation and teamwork in meeting group goals.
There are a variety of wellness programs that employers are implementing, the most popular of which include onsite health risk assessments, disease management, addressing tobacco use, access to fitness centers, well baby programs, flu shots, general health and safety communications, and weight management.
A recent Principal survey showed that only one in seven workers, or 14%, has access to educational tools and fitness center discounts, and only 10% of workers have onsite health screenings available through their employer.
Although some employers have been fearful to implement wellness programs because of the perceived additional costs, the Principal study showed that not only do wellness programs not increase costs, but on average they also provide a 2 to 1 return on investment. Additionally, employers have seen a reduction in healthcare costs and reduced absenteeism. The study did indicate that 18 months is the average length of time it took for employers to recognize these results.
Employers have voiced concerns about employees not showing interest in wellness programs. To address this, some employers have incorporated the use of incentives to raise participation levels. Some common incentives include cash, gift certificates, time off, and Health Reimbursement Account credit.
Another incentive some employers have recently incorporated is lower deductibles and co-payments for employees that participate in health risk assessments and that had no illnesses or at-risk behaviors identified. Workers with illnesses or at-risk behaviors would still qualify for a lower cost if they agreed to make the necessary health improvements by working with a wellness coach. This incentive is catching on with 45% of employees surveyed expressing interest in a group healthcare plan that required a health risk assessment.
Wellness initiatives are not without risk. Privacy and legal questions continue to be a significant concern around these programs, particularly mandatory health assessments. Your HR department should work closely with legal counsel in the implementation of such programs so as not to appear discriminatory in any fashion.
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With healthcare costs continuing to rise, companies are employing tactics in an attempt to lower their costs. Such actions may include: transferring costs to employees, increasing premiums and switching group health carriers who may provide better alternatives. One of the recent trends gaining traction among employers is the execution of wellness programs.| Issue 5 | May 2008 |
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