Wellness Works…and Saves You Money

Originally Published in RMP Advisor, April 2010

by David Edman

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We are continually talking about ways to increase the “value” of your healthcare purchasing dollars—how to get the best possible benefits for the lowest possible cost. Since your employees and their dependants are the ultimate users of the healthcare system, consumer involvement in their healthcare decision-making is an essential element. How do we promote employee and consumer involvement in their healthcare? An effective wellness program is the foundation of consumer involvement.

Wellness programs and education of your employees go hand in hand. A recent study shows that workers who better understand their health insurance plans are more likely to make more cost-efficient decisions. “If people are more aware of their overall healthcare costs and how the different types of care have different costs, then people will use the healthcare system more efficiently,” said Amy Lischko, the lead author of the report and former commissioner of the Massachusetts Division of Health Care Finance and Policy. And they are more likely to make good lifestyle decisions.

The 5 Key Elements of a Wellness Program

Here are some suggestions on how to develop and provide the types of wellness programs and services that will benefit your employees and save you money:

1. Offer Wellness Programs of Interest to Your Employees. Talk to your employees, or survey them, to determine the types of programs in which they are interested and will participate. Generally speaking, people support what they help to create.
    
2. Communicate with Your Employees. Build interest in the program by using a variety of media, beginning several weeks before the program launch date. Remember that individuals learn in many different ways, so employ all means of communication at your disposal, such as articles in the company newsletter, paycheck stuffers, lunchroom posters and table toppers, emails, a letter from top management, and employee meetings.
    
3. Ensure Ease (and Fun) with Participation. Make participation in the program as easy as possible for your employees by scheduling activities (e.g., onsite screenings) throughout the day, make it easy to sign up, and let them know if the activity is permitted during a work break. To encourage spouse participation, include early morning and evening times. And make participation fun by incorporating contests, party-atmosphere health fairs, and club/team-based activities that get employees moving (like lunchtime walking clubs, a “Biggest Loser” contest, or a softball or bowling team).
    
4. Maintain Strict Confidentiality of Information. Some employees may hesitate to participate in a wellness program if they believe their employer will have access to the information. Clearly communicate the confidentiality guaranteed by HIPAA, as well as the steps taken by you the employer, to ensure that participants’ confidentiality is strictly maintained.
    
5. Offer Financial Incentives. Many believe this to be the most effective motivator of participation in company wellness programs. Financial incentives may take the form of a health-plan discount or premium differential, contributions to health savings accounts, cash or payroll credits, or copay reductions. A “Use of Incentives” study by Health2Resources showed that average value of employer financial incentives for wellness programs was $329 in 2009, ranging from $1 per pound of weight lost to annual premium reductions valued at more than $1,500. It’s a “win-win” for employer and employee.

What’s My Return on Investment (ROI) from Wellness?

Favorable results are reported in an article published by Workforce Management. A review of 56 published studies of worksite health-promotion programs by the Washington-based Partnership for Prevention found they produced an average savings-to-cost ratio of $5.81-to-$1. The programs also reduced annual health costs by an average of 26%, reduced absenteeism by 27%, and reduced workers compensation and disability claim costs by 32%.

Sound too good to be true? There’s only one way to find out. Here’s a list of programs offered by RMP’s Wellness Coach. Contact us and let us help you get started.