Need More Proof that Corporate Wellness Programs can Reduce Your Health Care CostsHere are some quotes from recent peer reviewed journal articles documenting your projected savings.Return on Investment “A meta-analysis of workplace disease prevention and wellness programs found that for every dollar spent on the program, medical costs dropped by about US $3.27 and absenteeism costs dropped by about US $2.73.” “A study was conducted to determine the return on investment (ROI) of Highmark Inc.'s employee wellness programs by comparing medical claims with wellness program participants versus risk-matched non-participants from 2001 -2005. Multivariate models estimated health care expenses per person per year as $176 lower for participants. Inpatient expenses were lower by $182. Four-year savings of $1,335,524 compared with program expenses of $808,403 yielded an ROI of $1.65 for every dollar spent on the program. The conclusions using sophisticated methodology, suggests that a comprehensive health promotion program can lower the rate of health care cost increases and produce a positive ROI.” Productivity Savings “A study shows a positive correlation between reducing employee health risks and enhancing productivity. More than 770,000 employees in 106 companies participated in the study. Employees who had none of the eight assessed health risks had a productivity loss of 3% while those with eight health risks had a 24% productivity loss. Data was taken from employee’s health risk assessment. Translated into dollars, on average, in this study, employees with low health risks cost their employer $1,472 per year in lost productivity compared to employees with three health risks who cost the company $5,952 in lost productivity. Researchers estimated, that if 100 employees with three health risks each eradicated one risk factor, the employer would gain $149,400 in productivity.” Revenue“Companies with an effective health and productivity program:
“Although many employers are interested in health management for employees who consume 80% of the health care costs and are at risk of health problems, it is critically important to continue to support employees with low health risks so that they stay at low risk.” Loyalty and Retention “Wellness programs are attracting more workers and not just from large companies. Organizations with less than 1,000 employees had a 79% participation rate in on-site health screenings in 2006 up from 68% in 2005. What’s more, 60% of workers took advantage of fitness facilities offered by their companies in 2006, compared to 38% in 2005. Another 65% of workers created a personalized health program to address high-risk conditions last year, up from 45% in 2005. Slightly more than half of employees feel a wellness program strengthens their loyalty to the company and motivates them to work harder and better. Sixty-one percent of workers believe employer-sponsored wellness programs can fight against escalating health care costs. Reduced personal health care costs are one of the reasons 38% of employees would be willing to sign up for a wellness program.” Obesity Trends“In a study conducted by the University of Michigan and Harvard University which forecasted life expectancy based on obesity and smoking in the US, the researchers found that if the current obesity trends continue, its negative effects ‘will greatly outweigh the positive effects gained from declining smoking rates.’ The authors state, “In the past 15 years smoking rates have declined by 20%, but obesity rates have increased by 48%. If past trends continue, nearly half of the population - 45% - is projected to be obese by 2020.” True Economic Burden of Disease “For every dollar spent on medical and pharmaceutical costs, there is $2.30 of health-related productivity losses due to absenteeism and presenteeism. For some individuals, such as employees who suffer from anxiety, employers lose as much as $20 in productivity for every dollar they spend on medical care and pharmaceuticals.” Costs of Obesity“Here are some statistics on obesity:
The estimated cost of obesity in a hypothetical 1-million-member health plan is $29 per member per month.
Incentives Matter “A study found that monetary incentives helped individuals lose weight in the short run. ‘Incentive approaches based on behavioral economic concepts appear to be highly effective in inducing initial weight loss’ – thus the success of Biggest Loser programs.” Importance of Strong Communications Programs “Incentive value and the communications and organizational commitment are the strongest predictors of HRA completion rates. To achieve a 50% completion of an HRA, an organization with a low level or organizational commitment and limited communications needs an approximate incentive value of $120 for completion, whereas an organization with high commitment and good communications needs only $40. Soft Benefits of Wellness Programs“Health promotion literature also documents the value of worksite wellness programs in other important aspects:
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