Posted by admin | Posted in Health Program Ideas, Screening and Intervention Programs, Wellness Program Incentives | Posted on 25-06-2009
Employee Wellness Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured on-Site gyms and massages, and were used as recruitment tools for young staff members searching for nontraditional work environments. However, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and businesses returned to a more old-school benefit structure focused on managed medical care.
In recent years, as Healthcare costs have spiraled out of control, organizations have explored the potential of Employee Wellness Programs as a cost-saving strategy. Businesses such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Employee Wellness Programs can help reduce the costs associated with:
Healthcare premiums – The cost a company pays for health care insurance: According to a 2005 study by Hewitt, the Healthcare cost per employee in the United States in 2006 will average $8,046, with employers absorbing nearly two-thirds of that cost.
Prescription costs – The price of a drug plan: According to a 2005 study by Mercer, the average annual drug costs for big organizations grew 11.5%, making it nearly a decade straight of double-digit increases in cost.
Short-term disability (STD) – The cost of offering STD insurance to staff members: According to a 2004 study by insurance provider Cigna, the average STD claim results in $13,094 in direct disability payments and healthcare costs. The report also found that 26% of claims related to healthcare events were a result of chronic conditions that could likely be mediated through Employee Health Promotion Programs, and that these cases amount for 56% of the STD-related healthcare costs.
Absenteeism – The cost of missed work: Absenteeism cost organizations $660 per employee in 2004, with nearly one-third of organizations characterizing the trend as a somber issue.
Presenteeism – The cost associated with employees who work at decreased productivity levels: Sixty percent of the total cost of employee illnesses come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.
The evidence is clear that strategically designed Workplace Health Promotion Programs can decrease both direct and indirect Medical Care costs. A 2004 review of Workplace Health Promotion Programs revealed that, in total, an investment of $1 by a organization in Wellness Programming returned a median cost savings of $2.05 to $4.64.

Wellness Proposals