Employee Health and Wellness Programs

Employee health and wellness programs are mature enough that there is a tremendous amount of data illustrating the economic benefits associated with better health. The United States spends over $2 trillion on health care annually. In light of all the money being spent on care, plan sponsors and other payers want to be sure they are spending their health care dollars wisely.

According to the Partnership for Prevention, over 95% of our nation's health care expenditures are committed to diagnosing and treating disease only after it becomes evident. Costs associated with preventable illness make up the largest portion of the nation's health care bill.  Employee Health and Wellness Programs are designed to target those chronic, preventable diseases in order to avoid or reduce the prevalence of those conditions.

Employee Health and Wellness Programs are the logical place to address these chronic, preventable conditions since working Americans spend more of their waking hours at work than at any other location.  Employee Health and Wellness Programs also improve the productivity of employees, reduce absenteeism and presenteeism rates and lower health care costs.  All things considered, it just makes sense to offer Employee Health and Wellness Programs.

Employee Health and Wellness Programs: Incentives

Employee Health and Wellness Programs can use incentives to increase overall participation in the program. Examples of incentives used by employee health and wellness programs include; discounts on insurance premiums, lower deductibles, and reduced or waived copays for preventive services and health programs.

In addition to utilizing incentives as part of employee health and wellness programs, clear communication is essential, particularly in light of the sheer volume of information distributed to plan participants. Easy access, via employee health and wellness programs and Web-based and telephone information delivery, is also important to maximize participation. Integrating employee health and wellness programs with health care, disability and employee assistance plans, and work/life programs is also beneficial.

Employee Health and Wellness Programs: Elements of Success

All of the data points to the need for individuals to take better care of themselves. Implementing employee health and wellness programs can help employees understand the importance of making lifestyle changes and can encourage behavior modification.

Other advantages of effective employee health and wellness programs include increased employee productivity and morale, lower utilization of health benefits, reduced absenteeism and improved employee recruitment and retention. Employee health and wellness programs require employer and employee commitment as well as data management expertise.

Elements of a successful employee health and wellness programs may include:

• Strategic consultation about employee health and wellness programs
• Health risk appraisals and health risk assessments
• Early detection initiatives, including blood and cholesterol tests
• Targeting high-risk populations
• On-site health screenings and immunizations
• Health Fairs and Wellness Fairs
• Web portal, health content & lifestyle programs
• Health coaching - online coaching, face-to-face coaching, telephonic, etc.
• Telephonic nurse line
• Stress management programs
• Smoking Cessation / Tobacco Cessation
• Education and support programs
• Disease management programs
• Clinical event-driven activities
• Quality improvement initiatives
• Nutrition counseling and weight loss programs
• Data mining and predictive modeling
• Alternative therapies
• Although return on investment for employee health and wellness programs is difficult to measure, the following examples illustrate some of the cost savings reported:

Employee Health and Wellness Programs: Return-On-Investment (ROI)

A study of Johnson and Johnson's employee health and wellness program reported an average of $8.5 million annually for a 4-year period, and an annual average medical care cost savings of $225 per employee.

Motorola's efforts are truly remarkable, with 45 sites and 65,000 employees included in their wellness program. Motorola’s new wellness reimbursement program saved more than $12 million, with a return on investment of $3.93 for every $1 spent.

Modifying behavior and lifestyle is not an easy task. To break bad habits and sustain change over the long term, employee health and wellness programs need the support of other institutions, including the government, family, the medical community and educational institutions. Employee health and wellness programs can use the resources made available by these institutions and create alliances with them so their message is aligned.