Posts from — November 2008

Corporate Wellness Programs are proven to improve productivity and decrease 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 Worksite Wellness Program with the most popular being exercise, tobaccos cessation classes, back care programs, and stress management. The majority of companies offer Corporate 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 medical insurance premiums and healthcare costs.

For many corporations, medical costs can consume half of company 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 Corporate Wellness Programs stand out as the long-term answer for keeping workers well in the first place.

Corporate Wellness Programs are an example of healthcare reform that works. Results from America’s finest corporations, summarized here, are reason enough to consider providing Corporate Wellness Programs.  This investment in your most important asset - your workers - can have a positive impact on your bottom-line.

Worksite Wellness Program Statistics:

Providence Everett Medical Center, a member of the Wellness Councils of America, 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 Corporate Wellness Program. By providing financial incentives and rewards ($250 - $325) to workers who meet specific organizational and worker health initiatives the Worksite 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 Worksite 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 every dollar invested in their Worksite Wellness Program yielded $1.42 over two years in lower absenteeism costs at Du Pont Co. (Well workplace Gold in Delaware). Absences from illness unrelated to the job among 45,000 blue-collar workers dropped 14 percent at 41 industrial sites where the Worksite Wellness Program was offered, 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 Corporate Wellness Programs, yielding total company savings of $146 million in benefits costs. Sick leave was reduced 19 percent during the four-year research study. In addition to improving the overall health of 36,000 workers and retirees by reducing 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 research study, members of a Travelers fitness center Worksite Wellness Program were absent from work significantly fewer days than non-members.

The Worksite 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 Corporate Wellness Program. Participants significantly lowered cholesterol levels, blood pressure, and weight and experienced 21 percent lower lifestyle-related claim costs than non-member. Resulting savings: $127.89 per member in the Worksite 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 business’s broad-based Corporate 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 medical costs per worker at $6,000, nearly twice the national average, Union Pacific Railroad introduced their Worksite Wellness Program to its 28,000 workers, mostly union and blue collar, in 19 Western and Southern states. Beginning with a modest medical self-care initiative at an annual cost of $50 per person, the Worksite Wellness Program achieved a net savings of $1.26 million. In addition, a voluntary Worksite Wellness Program to help workers lower health risks projected a cost-benefit ratio of 1 to 1.57 after one year. Staff Members in a treatment group lowered 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 smoking.

Average medical 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 business who enhanced their health habits through the company’s Worksite Wellness Program and became low risk cut their average medical claims in half thus lowering their medical 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.

Staff Members at Berk-Tec, a small manufacturing business in Lancaster County Pennsylvania, learned self-care techniques and lowered their business’s healthcare costs in one year. By using a self-care guide, the 938 workers and their family members made smart medical 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 medical claims-based research study of 72,000 people insured through 285 Wisconsin school districts found a lower demand for medical services among those with access to Corporate Wellness Programs and self-care programs. Reductions in medical 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 Worksite 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-member.

With savings estimated to be as high as $8 million, the California Public Staff Members’ 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 research study, Bank of America retirees in California who chose the full Worksite 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 lower healthcare claims, medical costs decreased 16 percent for workers in the City of Mesa (Arizona) who took part in the broad-based Corporate 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 workers, offered classes and fitness training. As a result, there was a significant increase in worker morale, reduced worker’s comp claims, medical costs and sick days related to back injuries producing a net cost-benefit ratio of 1 to 1.79.

Corporate Wellness Programs: Savings

Corporate Wellness Programs provide Long-Term Savings

Corporate Wellness Programs, according to an article in Crain’s Detroit Business, come in two choices:  Corporate Wellness Programs or Health Insurance products that aim to lower costs if healthy habits are followed.  Both options are good, but only one will really provide long-term medical benefits for your workers and lower costs over the years.

Corporate 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 physician, 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 medical cots in the future.

Corporate Wellness Programs provide convenient Health Risk Assessments (HRAs) and testing for things like diabetes, cholesterol and blood pressure.  As the article notes, 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.

Corporate Wellness Programs Get Results

Finally, the article notes that businesses with an effective Worksite 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.

Employers are no longer able to trim extra savings out of their medical insurance programs, and most corporations have been cost shifting, asking workers to cover more of their healthcare costs. Health insurance costs continue to climb (10 percent or more per year) at 2-3 times the general inflation rate. With nowhere else to turn, companies are – more than ever – looking to get workers engaged in Corporate Wellness Programs as a means of slowing healthcare costs and improving productivity.

For example, last year 53 percent of large companies offered Health Risk Assessments (HRAs) for their staff, up from 35 percent just two years earlier, according to a Mercer survey. Change is being driven by cost, but Corporate Wellness Programs a win-win solution for both companies and workers.

Here are other Worksite Wellness Program trends organizations are implementing:

More corporations are integrating Corporate Wellness Programs into their benefits plans. If they want the best plans or the lowest individual costs, they need to participate in the Worksite Wellness Program and meeting minimum objectives.

More corporations are providing worksite weight loss programs as a component of the Corporate Wellness Program, especially after Duke University’s new research showing the high cost of overweight workers and increased cost for worker’s compensation for sedentary and overweight workers.

Employers are providing more Corporate Wellness Programs designed to assist workers with chronic health conditions: health coaches, nurse advice lines, telephone counseling, and self-study guides

Employers are providing more web-based Worksite Wellness Program interventions and health information resources

More corporations are providing regular worksite employee health screenings including cholesterol, glucose, A1c, blood pressure, weigh-ins, and other checks as a part of their Corporate Wellness Program. Some Corporate Wellness Programs even include bone-density checks and skin cancer screenings.

Many corporations are providing fitness programs, either in the community or worksite, as a part of their Corporate Wellness Program.

Corporations are providing more rewards, prizes and incentives getting engaged in Worksite Wellness Program activities

Some corporations are adding emphasis to health maintenance. It’s one thing to lose weight or stop tobacco; it’s another to maintain these changes. Helping workers stay engaged and maintain their health changes is important for long-term success.

Employers are putting more emphasis on keeping healthy people healthy rather than just working primarily with high-risk individuals. Research shows this approach results in a greater Worksite Wellness Program return on investment (ROI).

Wellness corporations are providing great resources for organizations’ workers over the Internet – online wellness centers, monthly health and wellness newsetters, wellness challenges, web-based points tracking systems, virtual fitness programs, web-based wellness coaching or interventions, interactive health calculators, healthy recipes, even downloadable health tips for your iPod.

Employers who are becoming more proactive are making a big impact on their future healthcare expenses and productivity. Ohio State University announced that they expect to save $30 million dollars with their broad-based Worksite Wellness Program over the next 5 years!

Corporate Wellness Programs and prevention are sound ideas whose time has come. Wellness is more fun and costs less than treating disease.

References: TIME in partnership with CNN, “Businesses Help Workers Lose Weight.” Website accessed July 2007.

Corporate Wellness Programs start and end with individual health. Individuals, after all, are able to make decisions about maintaining and / or improving their health and wellbeing. Employee Corporate Wellness Programs must therefore provide the tools and resources necessary to assist and motivate individuals to actively participate in the program.

Individual health is only one part of establishing worker Corporate Wellness Programs. Below you’ll find some things to assist you in your efforts to develop a healthy atmosphere for you and your coworkers.

Encouraging Your Employer to Create an Worksite Wellness Program

This is the first step in establishing a Corporate Wellness Program. In recent times more and more companies are establishing to see the value of promoting and supporting the health of their workers. Partnership for Prevention, a nonprofit organization, has released a sourcebook called “Healthy Workforce 2010″ (http://www.wellnessproposals.com/pdfs/tool_kits/healthy_workforce_2010.pdf). This sourcebook is an excellent resource containing information on:
•    Benefits of Corporate Wellness Programs
•    Suggestions on where to start
•    Tools like surveys and assessment forms

These resources are for both companies and workers to guide the development and assess the effectiveness of their new Corporate Wellness Program. Make available it to your employer as a place to start or read it yourself and present your ideas.

Taking Part in Corporate Wellness Programs

Once you have an worker Worksite Wellness Program established, participating fully in all phases of the program is important. Many of us know that we need to more actively engage in Corporate Wellness Programs to enhance our health, yet have difficulty finding and taking the time to do so. These simple steps can jumpstart your participation in an worker Corporate Wellness Program:
•    Review the offerings that interest you and that you need for health  improvement.
•    Schedule time to go to the presentation or service.
•    Actively following through with recommendations from the program.
•    Make a decision now to enhance your health. You will feel better today and tomorrow and the next day for actively moving towards wellness.

Here is a list of potential Corporate Wellness Programs that might be available to you at work:
•    ergonomic evaluations and training classes
•    lactation rooms and classes
•    prenatal education
•    quiet rooms for relaxation
•    stress management programs
•    fitnes centers
•    massage therapy
•    nutrition education
•    worksite primary healthcare services
•    child care facility or resources and referral service
•    tobacco cessation programs parenting classes
•    Elder care resources and referral service
•    cholesterol, blood pressure and glucose screening programs
•    flu shots
•    weight management programs
•    healthcare consumerism programs
•    employee assistance program
•    wellness coaching
•    mobile mammography

More information to follow in my next posting about Employee Corporate Wellness Programs