Wellness program means different things to different companies. Effective wellness programs can be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better consuming. They can be as robust as building fitness facilities on-site or compensating for obesity treatments.
A driving factor behind the push toward wellness spans organizations of all types, sizes and cultures – that is, healthcare expenditures are spilling over the corporate belt buckle.
The annual cost of medical services in the USA is rising at seven times the rate of inflation. And the rise in medical costs is one boom pundits expect our economy to sustain.1
This trend makes it increasingly difficult for employers to maintain current levels of insurance coverage. In 2003, health care inflation forced 65% of organizations to raise employees’ share of medical costs.
Seventy-nine% of large firms said they’ll increase workers’ share of medical costs in 2004.2 But with lost benefits and increased financial burdens come lost morale and productivity.
Businesss are searching for another way. While corporations can’t control many of the supply-side elements contributing to rising healthcare costs-malpractice insurance rates, the nursing shortage-they can help curb demand. That’s why efforts are being redirected from disease to wellness.
The case for wellness is supported by an ever growing body of evidence demonstrating the high costs associated with controllable health risks –
One study reports that obesity raises health care costs by 36% and medication costs by 77%.
Michigan officials estimate lack of exercise cost the state almost $8.9 billion in 2002, a cost estimated to be largely borne by companys through insurance premiums and lost productivity.
The not-for-profit National Committee for Quality Assurance reports that the estimated typical cost for postnatal care for women who didn’t receive prenatal care was $2,341 more than for women who had. And the indirect costs of unhealthful behavior may be just as high.
Data shows that healthier personnel are more productive, spending more time at work and showing increased “presenteeism,” or productivity, while there. Further, healthier personnel use fewer medical services.
The five leading causes of death in the U.S. – heart disease, cancer, stroke, chronic obstructive pulmonary disease and diabetes – are directly linked to unhealthful lifestyles. Obviously, encouraging healthful habits presents an opportunity to improve employees’ well being, reduce the need for healthcare services and help control costs.
Offering staff member wellness benefits – big or small – represents an intersection between corporate social responsibility and responsibility to stakeholders. Between staff member health and corporate health. It’s often the right thing to do for staff and companys.
Research by Traveler’s Corp. shows a $3.40 return for every dollar invested in Wellness Programs. for a lot of businesses, the option to offer employee health promotion benefits is easy-one where conscience and pragmatism align.
The challenge arises in choosing the programs that will deliver the most impact based on trends in your employees’ health risks and medical claims costs.
From big businesses to the corner deli, corporation owners welcome ways to improve productivity, reduce rates of absenteeism and cut costs. Likewise, health promotion programs can range from modest to elaborate.
In determining where to focus a organization’s limited resources, looking at costs, benefits and best practices is a good starting point. This section profiles six aspects of wellness and explores their benefits to workforce and employers.








