Archive for December 2nd, 2009

by Leah Tiller

Healthcare costs are spiraling out of control. Consider the following facts presented by Towers Perrin in the 2009 Healthcare Cost Survey:
* The U.S. will spend approximately $3 Trillion on healthcare
* Companies will pay an average of $9700 per employee
* 95% of every healthcare dollar will be spent on treating disease
* 75% of disease in the U.S. is lifestyle related and preventable

In an effort to contain the rising expense of health insurance, companies have shifted costs to employees, implemented high deductible health plans and attempted to create greater accountability of healthcare spending. All of these mechanisms alleviate the immediate pain employers experience however they fail to address the underlying issue by continuing to support a system that addresses health conditions only after they become chronic. By investing in prevention and wellness, in conjunction with a consumer driven option, companies can advance the future of their business and see a positive trend in medical spending and over all cost-containment.

Historically, companies have offered employees the standard wellness activities, such as gym membership discounts and flu shots but due to lack of structure, there has been little to show for that investment in way of tangible risk reduction and cost containment. The National Wellness Institute defines wellness as “an active process through which people become aware of, and make choices towards, a more successful existence.” When developing a strategy for wellness implementation this definition is critical. A comprehensive wellness program is one that actively engages upper level management and employees, makes them aware of their current health status through preventive testing, provides resources to promote behavior change and offers measurements of tangible results. In addition to these principles, participation is vital to the success and cost-savings ability of the program. Implementing an incentive strategy, such as premium discounts for timely participation, promotes engagement.

Not only can a more complete wellness program help prevent disease, it can also decrease absenteeism, decrease workers compensation and disability claims, improve employee productivity, enhance employee morale and aid in recruitment, retention and loyalty. The American Journal of Health Promotion states that a well-designed program can yield an average ROI of $3.48 for every $1.00 invested. By implementing a strategically designed wellness program, a company will breed a culture of health engagement and prevention which will yield positive returns on investment and enable the containment of future healthcare costs.