Worksite Wellness ProgramsWorksite Wellness Programs

The costs of medical care have been rising more than 10 percent each year for several years. A substantial amount of the money spent in the medical care system treats costly illnesses and diseases.

• Approximately 95 percent of the $1.4 trillion that we spend as a nation on health goes to direct medical care services, while about 5 percent is allocated to preventing disease and promoting health.
• Potentially, 50 percent to 70 percent of all diseases are avoidable as they are associated with modifiable health risks.
• In an effort to optimize employee health, lower avoidable medical care utilization and enhance work execution, and in turn reduced medical care costs and improve employee satisfaction and retention, many businesses are starting, or are interested in starting, Worksite Wellness for workers.

The benefits of worksite wellness are well documented. More than 120 research studies repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some major findings include the following:

• Savings of $3.48 in reduced medical care costs per dollar invested.
• Savings of $5.82 in lower absenteeism costs per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.
• Lifestyle behavior change programs: $3 to $6 ROI within 2 to 5 years.
• Self care, decision support programs: $2 to $3 ROI within a year.
• Disease management programs: $7 to $10 ROI within a year.

By offering health improvement programs, businesses are not only offering an additional service for workers, but they are also gaining financially. Furthermore, the influence of a health improvement program goes beyond lowered medical care cost and ROI. A health improvement program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs. Source: Rees, C., and Finch, R. (2004). Health Improvement: A comprehensive guide to beginning, implementing and evaluating worksite programs. National Business Group on Health, 1 (1), 1-7.