Employee Health and Wellness Programs are proven to improve productivity and lower healthcare costs. For a business, that makes a difference in the bottom-line. Today, more than 81 percent of America’s businesses with 50 or more workers have some form of Employee Health and Wellness Program with the most popular being exercise, tobaccos cessation classes, back care programs, and stress management. Most companies offer Employee Health and Wellness Programs simply because they think the benefit is worth the cost. Yet business leaders continue to ask themselves how to control huge annual increases in health insurance premiums and healthcare costs.
For many corporations, health costs can consume half of corporate profits or more. Some employer’s look to cost sharing, cost shifting, managed care plans, risk rating, and cash-based rebates or incentives and rewards. But these methods merely shift costs. Only Employee Health and Wellness Programs stand out as the long-term answer for keeping workers well in the first place.
Employee Health and Wellness Programs are an example of healthcare reform that works. Results from America’s finest corporations, summarized here, are reason enough to consider providing Employee Health and Wellness Programs. This investment in your most important asset - your workers - can have a positive impact on your bottom-line.
Employee Health and Wellness Program Statistics:
Providence Everett Medical Center, a member of the WELCOA, in Everett, Washington, saved an estimated 3 million or a cost-benefit ratio of 1 to 3.8 over 9 years of an outcomes-based Employee Health and Wellness Program. By providing financial incentives and rewards ($250 - $325) to workers who meet specific organizational and worker health initiatives the Employee Health and Wellness Program continues to meet cost containment expectations in the area of healthcare use, sick time, injuries, while improving health habits and self-care practices.
During the first 4 years of the Employee Health and Wellness Program there was a 28 percent average reduction in healthcare utilization compared to nine other Providence hospitals that were used as a control group.
Du Pont saw that each dollar invested in their Employee Health and Wellness Program yielded $1.42 over two years in reduced absenteeism costs at Du Pont Co. (Well workplace Gold in Delaware). Absences from illness unrelated to the job among 45,000 blue-collar staff members dropped 14 percent at 41 industrial sites where the Employee Health and Wellness Program was provided, compared with a 5.8 percent decline at 19 sites where it was not.
The Travelers Corporation claims a $3.40 return for every dollar invested Employee Health and Wellness Programs, yielding total corporate savings of $146 million in benefits costs. Sick leave was lowered 19 percent during the four-year study. In addition to improving the overall health of 36,000 workers and retirees by decreasing poor health habits and increasing good ones, The Travelers realized cost savings by decreasing the number of unnecessary visits to a doctor and emergency rooms. In a similar but smaller study, members of a Travelers fitness center Employee Health and Wellness Program were absent from work significantly fewer days than non-members.
The Employee Health and Wellness Program at Reynolds Electrical & Engineering Company, based in Las Vegas, cost $76.24 per worker during the two years it has been in operation. Over half of the 1,600 workers took part in the Employee Health and Wellness Program. Participants significantly lowered cholesterol levels, blood pressure, and weight and experienced 21 percent lower lifestyle-related claim costs than non-participant. Resulting savings: $127.89 per participant in the Employee Health and Wellness Program with a benefit to cost ratio of 1.68 to 1.
Superior Coffee and Foods, a Bensenville, Illinois-based subsidiary of Sara Lee Corporation, attributes impressive results to the success of the company’s comprehensive Employee Health and Wellness Program. Superior showed 22 percent fewer admissions to a hospital, 29 percent shorter hospital stays, and 42 percent lower expenses per admission when comparing costs for this division’s 1,200 workers with costs for other divisions. Long-term disability costs were down by 40 percent.
With health costs per worker at $6,000, nearly twice the national average, Union Pacific Railroad introduced their Employee Health and Wellness Program to its 28,000 workers, mostly union and blue collar, in 19 Western and Southern states. Beginning with a modest health self-care initiative at an annual cost of $50 per person, the Employee Health and Wellness Program achieved a net savings of $1.26 million. In addition, a voluntary Employee Health and Wellness Program to help workers reduce health risks projected a cost-benefit ratio of 1 to 1.57 after one year. Employees in a treatment group reduceed their risk of high blood pressure (45 percent) and high cholesterol (34 percent); others moved out of the at-risk range for weight problems (30 percent); and 21 percent stopped using tobacco.
Average health costs of high-risk Steelcase workers- those whose lifestyles include two to four health risks such as smoking, little exercise, overweight- are 75 percent higher than those of low-risk workers. But high-risk workers at this Grand Rapids, Michigan-furniture manufacturing company who improved their health habits through the company’s Employee Health and Wellness Program and became low risk cut their average health claims in half thus lowering their health insurance costs by an average of $618 per year. If all high-risk workers (20 percent of the total worker population) in one location changed their lifestyles to become low risk, the projected savings could total $20 million over three years.
Employees at Berk-Tec, a small manufacturing company in Lancaster County Pennsylvania, learned self-care techniques and reduceed their company’s healthcare costs in one year. By using a self-care guide, the 938 workers and their family members made smart health decisions and saved $21.67 per employee and dependent a nearly 18 percent reduction in costs. By combining reductions in doctor visits and emergency room use, the business saved $39.06 per employee a 24.3 percent decrease in costs over the previous year.
A health claims-based study of 72,000 people insured through 285 Wisconsin school districts found a reduced demand for health services among those with access to Employee Health and Wellness Programs and self-care programs. Reductions in health services results in savings for the Wisconsin Education Insurance Group of as much as $4.75 for each $1 spent, higher savings were found in the group receiving access to a 24-hour phone-based nurse advice line, a self-care reference book, and health education materials.
CIGNA’s Healthy Babies prenatal Employee Health and Wellness Program delivered an average savings of $5,000 per birth by providing expectant mothers with educational materials and rewarding early and regular prenatal care. And 80 percent of participants had normal births without complications compared with 50 percent for non-participant.
With savings estimated to be as high as $8 million, the California Public Employees’ Retirement System sent its 55,000 retirees a health risk appraisal followed, in some cases, with individualized reports and letters and self-care materials to encourage change and help reduce health risks among retirees and at the same time reduce the healthcare claim costs. In another study, Bank of America retirees in California who chose the full Employee Health and Wellness Program and demand reduction program showed a decrease in total direct and indirect costs of 11 percent compared with a rise of 6.3 percent for those who completed only a simple health questionnaire.
With reduced healthcare claims, health costs decreased 16 percent for workers in the City of Mesa (Arizona) who took part in the comprehensive Employee Health and Wellness Program. The city realized a return of $3.60 for every dollar invested in the wellnss program for the city workers.
To prevent back injuries among its workers, a county in California targeted white- and blue-collar staff members, provided classes and fitness training. As a result, there was a significant increase in worker morale, lowered worker’s comp claims, health costs and sick days related to back injuries producing a net cost-benefit ratio of 1 to 1.79.
Employee Health and Wellness Programs: Savings
Employee Health and Wellness Programs provide Long-Term Savings
Employee Health and Wellness Programs, according to an article in Crain’s Detroit Business, come in two choices: Employee Health and Wellness Programs or Medical Insurance products that aim to lower costs if healthy habits are followed. Both options are a good choice, but only one will really provide long-term medical benefits for your workers and lower costs over the years.
Employee Health and Wellness Programs provide Assistance
Insurance-based products provide workers the opportunity, according to the article by Jay Green, to save money on their premiums if they follow certain steps, including performing an internet-based health assessment, visiting their doctor, and agree to adopt a healthy lifestyle. These plans usually involve one coach call to the worker during the first 90 days. We wonder if these brief wellness encounters will actually change a person’s lifestyle.
It is the overall change in a person’s lifestyle, as well as disease prevention that will lead to lower health costs in the future.
Employee Health and Wellness Programs provide convenient health risk assessments and testing for things like diabetes, cholesterol and blood pressure. As the article states, these have initial start-up costs, but the savings accrue over time and workers are more likely to stay active in an worksite worker Wellness Program.
Employee Health and Wellness Programs Get Results
Finally, the article states that corporations with an effective Employee Health and Wellness Program can expect to see “500 percent lower absenteeism, 400 percent fewer disability claims, and 350 percent lower healthcare costs.” These are numbers that are very hard to argue with.
