Worksite Wellness Programs are proven to improve productivity and decrease medical care costs. For a business, that makes a difference in the bottom-line. Today, more than 81% 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. Most businesses offer Worksite 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 medical care costs.
For many organizations, medical costs can consume half of corporate 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 Worksite Wellness Programs stand out as the long-term answer for keeping workers well in the first place.
Worksite Wellness Programs are an example of medical care reform that works. Results from America’s finest organizations, summarized here, are reason enough to consider offering Worksite 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 WELCOA, 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 Worksite Wellness Program. By offering 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 medical care 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% average reduction in medical care utilization compared to nine other Providence hospitals that were used as a control group.
Du Pont saw that each dollar invested in their Worksite Wellness Program returned $1.42 over two years in decreased rates of absenteeism costs at Du Pont Co. (Well worksite Gold in Delaware). Absences from illness unrelated to the job among 45,000 blue-collar workers dropped 14% at 41 industrial sites where the Worksite Wellness Program was offered, compared with a 5.8% decline at 19 sites where it was not.
The Travelers Corporation claims a $3.40 return for every dollar invested Worksite Wellness Programs, yielding total corporate savings of $146 million in benefits costs. Sick leave was reduced 19% during the four-year study. In addition to improving the overall health of 36,000 workers and retirees by decreasing 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 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 participated in the Worksite Wellness Program. Participants significantly lowered cholesterol levels, blood pressure, and weight and experienced 21% lower lifestyle-related claim costs than non-participant. Resulting savings: $127.89 per participant 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 company’s comprehensive Worksite Wellness Program. Superior showed 22% fewer admissions to a hospital, 29% shorter hospital stays, and 42% 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%.
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. Employees in a treatment group lowered their risk of high blood pressure (45%) and high cholesterol (34%); others moved out of the at-risk range for weight problems (30%); and 21% stopped using tobacco.
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% higher than those of low-risk workers. But high-risk workers at this Grand Rapids, Michigan-furniture manufacturing company who improved 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% 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.
Employees at Berk-Tec, a small manufacturing company in Lancaster County Pennsylvania, learned self-care techniques and lowered their company’s medical care 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% reduction in costs. By combining reductions in doctor visits and emergency room use, the business saved $39.06 per employee a 24.3% decrease in costs over the previous year.
A medical claims-based study of 72,000 people insured through 285 Wisconsin school districts found a decreased demand for medical services among those with access to Worksite 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% of participants had normal births without complications compared with 50% for non-participant.
With savings estimated to be as high as $8 million, the California Public Employees’ 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 medical care claim costs. In another 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% compared with an increase of 6.3% for those who completed only a simple health questionnaire.
With decreased medical care claims, medical costs decreased 16% for employees in the City of Mesa (Arizona) who participated in the comprehensive Worksite Wellness Program. The city realized a return of $3.60 for every dollar invested in the wellnss program for the city employees.
To prevent back injuries among its employees, a county in California targeted white- and blue-collar workers, offered classes and fitness training. As a result, there was a significant rise 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.
Worksite Wellness Programs: Savings
Worksite Wellness Programs offer Long-Term Savings
Worksite Wellness Programs, according to an article in Crain’s Detroit Business, come in two varieties: Worksite Wellness Programs or Health Insurance products that aim to reduce costs if healthy habits are followed. Both options are good, but only one will really offer long-term medical benefits for your employees and reduce costs over the years.
Worksite Wellness Programs offer Help
Insurance-based products offer employees the opportunity, according to the article by Jay Green, to save money on their premiums if they follow certain steps, including performing an online health assessment, visiting their medical provider, 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 reduce medical cots in the future.
Worksite Wellness Programs offer convenient health risk assessments and health screening for things like diabetes, cholesterol and blood pressure. As the article states, these have initial start-up costs, but the savings accrue over time and employees are more likely to stay active in an workplace worker Wellness Program.
Worksite Wellness Programs Get Results
Finally, the article states that businesses with an effective Worksite Wellness Program can expect to see “500 percent reduce absenteeism, 400 percent fewer disability claims, and 350 percent reduce medical care costs.” These are numbers that are very hard to argue with.
