Wellness Program Blog

What began more than a decade ago as a pilot program in two locations, has now developed into a global initiative for Motorola. The company’s Company Wellness is run by the Global Rewards group consisting of more than 50 workers and funded by an annual grant. Programs are consistently assessed on their ability to deliver a positive return on investment and benefit the collective Motorola community. central, the program reaches more than 30,000 workers, family members and retirees.

Company Wellness  Features:

• The company provides no cost membership for active workers to Wellness Centers located at 8 United States locations (retirees pay a small fee).
• Workers at locations without a Wellness Center receive $240 to help cover the cost of a membership at a qualifying fitness center.
• In 2003, the company provided flu immunizations to more than 11,000 workers, dependents and retirees at 70 onsite locations.
• Motorola holds hundreds of health education classes each year for workers.

Company Wellness  Determinations:

• Among workers who regularly used onsite Motorola Wellness Centers or an alternate fitness center the company saved $3.93 for every $1 it spent, according to data from 2000.
• Participating workers cost $6.5 million dollars less in lifestyle-related medical expenses than non-participants.
• Company Wellness  participants experienced annual Health Care cost rises of 2.5 percent, compared to 18 percent rises for non-participants.

Obesity

Obesity, one of the fastest increasing epidemics in America, is the most prevalent health risk among workers. Obese people are at a greater risk for several chronic diseases such as congestive heart failure, type 2 diabetes, stroke and hypertension.

Facts:

• The prevalence of overweight and obesity has doubled since 1980.
• Two-thirds (66.3 percent) of the population is overweight or obese (using Body Mass Index as a measure); 32.3 percent are obese.
• Obesity has roughly the same association with chronic health conditions as 20 years of aging.
• Greater than 20 percent of very overweight workers have low morale, almost twice that of workers of healthy weights.
• Overweight and Obesity medical claims cost around $92 billion in 2002, 9.1 percent of all United States Health Care expenditures.

Mental Illness

Often ignored or misdiagnosed, mental illness is one of the most disruptive health issues in employers. It is unique in that its indirect costs (particularly presenteeism) are often higher than its direct medical costs.

Facts:

• Approximately 20 percent of the United States population is affected by mental illness during a given year, with the most common form being depression; yet in 1997, only 23 percent of American adults diagnosed with depression received treatment.
• In 2001 mental illness and substance abuse treatment cost more than $104 billion, comprising 7.6 percent of domestic Health Care spending.
• Around 217 million days of work are lost each year due to productivity decline from mental illness and substance abuse disorders, costing $17 billion each year.
• Depression is one of the most costly workplace health problems, costing the United States $43.7 billion each year, including workplace costs for absenteeism and lost productivity.

Smoking

Though smoking rates have decreased slightly in the U.S. over the past decade, smokers still make up 21.1 percent of the population.  For many employers, limitations on smoking in facilities means a greater loss of productivity during breaks, adding to the costs of the practice.

Facts:

• The United States Center for Disease Control and Prevention (CDC) puts a $3,391 price tag on each employee who smokes: $1,760 in lost productivity and $1,623 in excess medical expenditures.
• Workers who use tobacco had about two times more lost production time (LPT) per week than workers who never smoked, a cost of $27 billion to employers.
• An economic assessment found that a Health Care plan’s annual cost of covering treatment to help people quit smoking ranged from $0.89 to $4.92 per smoker, whereas the annual cost of treating smoking-related disease ranged from $6 to $33 per smoker.
• The direct and indirect costs of smoking are estimated at $138 million per year.43 Finding Wealth Through Wellness 19 • Quitting smoking could decrease an individual’s Health Care costs by $960 each year.
• Secondhand smoke costs the United States economy roughly $10 billion a year: $5 billion in estimated medical costs associated with secondhand smoke exposure, and another $4.6 billion in lost wages.
• From 1997-2001, tobacco use and exposure to tobacco smoke resulted in approximately 438,000 premature deaths in the U.S., 5.5 million years of life lost, and 92 billion dollars in productivity losses each year.
• Smokers, on average, miss 6.16 days of work per year due to sickness (including smoking related acute and chronic conditions), while people that do not use tobacco miss 3.86 days of work per year.
• Each smoker who successfully quits lowers the anticipated medical costs associated with heart attack and stroke by an estimated $47 in the first year and $853 during the following seven years.

Increasing Health Care costs show no signs of slowing in the near future. Hewitt projects Health Care costs will jump another 9.9 percent in 2006, amounting to more than $11,000 per family (of which the company will absorb more than 60 percent of costs).  Greater than nine of 10 members of management see increasing Health Care costs as a weighty company concern that their company needs to address.26

The current Health Care climate represents an ideal opportunity for employers to reevaluate their Company Wellness  offerings and consider the more systemic approach of a robust Company Wellness . Despite the big number of employers that claim to offer disease management or Company Wellness  activities, as of 2005 only 23 percent of workers were eligible for Company Wellness Programs and only 13 percent were provided access to a fitness center through work.27 This is despite evidence that nearly two-thirds of workers would be open to company-provided HRAs and enrolling in programs that encourage healthier lifestyles.28

Company Wellness Programs are a chance for employers to differentiate themselves from competitors by increasing productivity, cutting costs and establishing a healthier work environment that is valued by current and prospective workers. Nearly onethird of workers polled in a 2004 study by MetLife given benefi ts as an important reason why they decided to work for their company and 38 percent said it is among the top reasons they remain at their work.29 Gary Grates, global director of Edelman’s Change and Employee Engagement Group, notes, “The return on investment in a Company Wellness  extends well beyond monetary Health Care savings. These programs can play a essential role in creating a more engaged workplace environment where workers are aligned with company objectives. Company Wellness Programs can represent more than a human resources initiative, they can be a bold symbol of what you as a company stand for.”

To date, employers have viewed Company Wellness Programs as merely another benefit to be managed by the human resources department. However, executives, and their employers, would be better served by adopting a more strategic and integrated approach to Company Wellness Programs. Companies that are able to develop Company Wellness Programs based on sound measurement, work within existing regulations, and involve workers around initiatives, will reap valuable rewards in terms of cost savings and long-term strength.

Following cost, poor employee program engagement and inadequate talks and support are listed as the greatest challenges for employers administering any health benefi t program.22

By law, employers are required to explain any benefits or explicit conditions of employment to all workers – this is called “due process,” and it usually takes the form of a packet of information that new workers are asked to review and sign during orientation or, in the case of existing workers, a brief communication during open enrollment periods.

Companies that only engage in the minimally required due process communication of a Company Wellness , however, do a disservice to the initiative and the company.

Opinions about Health Care in employers represent one of the largest disjoins between management and workers. In discussing the need for savings, most employers (70 percent) believe their company effectively communicates about rising Health Care costs, while only 34 percent of workers feel rising Health Care costs effect their business’ ability to succeed.23 When it comes to conduct, 74 percent of employers believe their workers ought to be held largely accountable for improving, managing and maintaining health, yet only 4 percent of employers think that workers engage in these activities.

Under the proposed rules, the four requirements to be a bona fide Company Wellness  are:

- The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of 10 percent to 20 percent of the total cost of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote great health or prevent disease for people in the program.
- The reward must be available to all similarly situated people. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a medical condition to meet the Company Wellness  standard (or for whom it is medically inadvisable to attempt to meet the Company Wellness  standard) an opportunity to satisfy a reasonable alternative standard.
- All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.
Source: United States Department of Labor Employee Benefits Security Administration

As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Company Wellness  is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get workers engaged and teach them of what’s going on.”

A properly implemented Company Wellness  is designed to save a company more money with improved participation. However, a company must match its focus on program design with an equally strategic investment in efforts to engage workers in the initiatives.

Lay out your case – Despite widespread recognition of rising Health Care costs, workers remain skeptical that the concern affects company operations. In fact, only 53 percent of workers even believe what their company communicates about the subject.24 Companies need to be more candid and forthcoming about the amount they spend on Health Care and how that relates to larger budgetary constraints and potential investments.

Says Motorola’s Saenz: “We share with workers that we have been able to maintain Motorola’s Health Care spend trend below national average over the past several years due to their participation in our various Company Wellness Programs. This transparency is necessary to keep reminding people the reasons for our conduct.”

An effective strategy is to focus on the cost savings and central health benefi ts to the employee and not the company. By personalizing the information in this way, it creates a win-win scenario instead of presenting the program as a sacrifi ce on the part of the employee. Information ought to be presented through multiple channels, constructed in a way that makes sense to all levels of workers, and provided to workers, dependents and retirees.

Make it your own – Every Company Wellness  will be different, and ought to reflect the culture of a company. While program areas will be determined by analyzing employee health risks, the actual offerings ought to be shaped by the nature of the company. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. In Addition, a global company with mobile workers will have different needs than a company with one central location.

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for employers to brand their Company Wellness Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded initiative helps workers and other stakeholders see the larger objectives of the Company Wellness , instead of focusing on isolated offerings.

Say it loud, say it proud – As a potential cost-saving initiative, Company Wellness Programs ought to be given the same executive support and internal commitment as any comparable company effort. Companies ought to not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the company to distinguish itself and become more competitive.

Jeffrey Treem, analyst, Edelman Change and Employee Engagement Group, says that effective communication about Company Wellness Programs ought to be integrated into existing company communication channels and vehicles. “This comprises executive communication to external stakeholders,” he notes, “because this sends a powerful message back to workers about the significance of the programs. Company Wellness Programs ought to not be treated as merely an additional employee perk, but rather an innovative and strategic effort to decrease costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Company Wellness  will be the participants.

Companies ought to discover ways to facilitate discussions about the program among workers. This could take the form of support groups, interactive media and the sharing of success stories.

However, since Company Wellness Programs touch on potentially private health issues, it is valuable communication remains positive and inclusive, while not pressuring workers. Discussion of wellness issues ought to be voluntary, though employers may consider providing incentives/rewards for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

For many employers, a smoking ban would not even apply to all workers. That is because currently 30 states and the District of Columbia prevent employers from banning off-duty smoking.21 In Addition, 13 states prevent employers from banning alcohol use away from work. Only six states have broad statutes that prevent employers from prohibiting any lawful behavior. Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When designing Company Wellness Programs, employers ought to keep in mind local statutes as well as established common law.

Savings of Voluntary Company Wellness  = (number of participants x savings per participant) – (cost of program)
Savings of Incentive-based Company Wellness  = (number of participants x savings per participant) – (cost of program + cost of incentives/rewards)
Savings of Mandatory Company Wellness = (number of participants x savings per participant) – (cost of program + cost of policy-related turnover + cost of limited talent pool)

Constructing Company Wellness  policies in a company that employs unionized workers can pose unique challenges. Company Wellness Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. However this circumstance can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by workers. The United Auto Workers and General Motors worked together to create and position a joint Company Wellness which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Company Wellness , p.21).

Even in an at-will employment environment, people are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Prior to starting a Company Wellness , employers need to be cognizant of the relevant legal restrictions and the potential affects these measures can have on benefi ts and employee behavior programs.

Title VII of the Civil Rights Act of 1964 – Prohibits employment discrimination based on race, color, religion, sex or national origin.

This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a company is offering access to gyms, it ought to be sure that men and women have equal access to facilities. Companies ought to also consider whether a person who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to supply onsite Company Wellness Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also increases participation.

Companies must also be aware that particular health issues may disproportionately affect protected classes. Health Risk Assessments and any incentives/rewards put in place may must be customized to account for non-lifestyle related differences.

The Equal Pay Act of 1963 (EPA) – Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, incentives/rewards and programs need to be applied equally to men and women. A company cannot set a weight goal for men and not for women, although a company can set health parameters by work function. The Age Discrimination in Employment Act of 1967 (ADEA) – Protects people who are 40 years of age or older from discrimination based on age.

Policies not only need to be available to people of all ages, but program objectives, restrictions and incentives/rewards need to be designed with age appropriateness. While older workers (or retirees and dependents) may inherently pose a higher health risk, their conduct ought to be assessed in terms of demographically appropriate measures.

Title I and Title V of the American citizens with Disabilities Act of 1990 (ADA) – Prohibits employment discrimination against qualified people with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Company Wellness Programs, such as a fitness center or health clinic, would have to make reasonable accommodations for workers with disabilities.

One area of equivocation is whether obese workers qualify as disabled. The concern is complicated because obesity is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for workers to qualify for disability based on obesity, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of incentives/rewards and program requirements provided, it likely would not affect the central implementation of behavioral-focused initiatives.

Civil Rights Act of 1991 – Provides monetary damages in cases of intentional employment discrimination.

This legislation allows people to sue employers for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a circumstance that causes public embarrassment, or even punitive damages meant to send a message to a company for egregious or habitual violations.

While these laws govern all company activities, there are even more stringent restrictions with regard to Health Care issues. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA employers cannot deny eligibility for benefits or charge a higher premium on the basis of:

• Health status
• Health condition (including both physical and mental ailments)
• Claims experience
• Receipt of medical care
• Health history
• Genetic information
• Evidence of insurability (comprises activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

However, because wellness programs may not involve medical treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not totally apply. To address this, in 2001 the United States Department of Labor, the Internal Revenue Service and the United States Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, employers that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs.

Complete Company Wellness Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not totally known. By their very nature, these programs potentially expose employers to discrimination lawsuits, disengaged workers and detrimental public relations. However, employers that make a good-faith effort to comply with current Health Care-related laws, discover ways to involve workers, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Company Wellness .

Unless specifically stated otherwise, most company-employee relationships in the U.S. are governed by the principle of at-will employment. Under this system a company, or the employee, can terminate the relationship without any required showing of cause. This at-will standard gives private employers substantial power in governing the behavior of workers. In this environment, employers can Finding Wealth Through Wellness 10 creatively design Company Wellness Programs based upon their specifi c corporate culture. Company Wellness Programs generally take three main forms:

Voluntary Company Wellness Programs – The most popular form of employee Company Wellness , in most cases they are made available to workers but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, often workers are either unaware of these offerings or confuse them with insurance-based healthcare. Incentive-based – Company Wellness Programs based on incentives reward workers for participation in Company Wellness  activities. Incentives usually comprise decreased Health Care premiums, gym membership or customized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Company Wellness Programs – Some employers require, or ban, certain health-related conduct. These can take the form of mandatory Health Risk Assessments for workers and limitations on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be gauged against the potential message sent to existing and prospective workers. Given that workers are already under various levels of scrutiny in the workplace, individuals may resist attempts by employers to regulate off-duty conduct. In Addition, some workers may fi nd it diffi cult to comply, forcing employers into the uncomfortable circumstance of punishing an otherwise productive employee.

In the short-term a mandate-based Company Wellness  can drive to an increase in turnover, as workers either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the company from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals considering the company. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Companies need to make sure that Company Wellness Programs are aligned with the values and culture that drive company operations. If a company emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a company that already heavily regulates company conduct. Moreover, a work environment with a big disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, employers need to take a wider view and consider the effects on long-term employee program engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 workers. Workers are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first company to use testing to enforce a smoking ban – most employers ask workers to self-report behavior. Four workers (more than 2 percent of the total crew) left Weyco as a result of the policy. A year prior to the ban the company implemented a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers reported that 20 workers quit smoking through this program.20 Workers were told they had one year before the total ban would go into effect. Under the new Company Wellness , Weyco does offer $35 a month for workers who want to use a fi tness center and another $65 a month for workers who meet fitness objectives.

1. Undertake a utilization assessment – While employers cannot get health information on individual workers, insurance providers will supply employers with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and drug use. This information is essential for a company to set a benchmark of its current health risk status. Data from human resources can be integrated with benefits information to supply a complete picture of employees’ health-related costs. Then, employers can determine the specific level of behavior change necessary to result in cost savings. The utilization assessment helps a company identify the areas in which it ought to focus its Company Wellness  to reap the greatest benefits.

2. Build a company case – Once a utilization assessment is in place, employers are able to quantify the Health Care cost savings that will result from specific levels of lifestyle change and risk reduction. This can be done by setting objectives in terms of reductions in identifi able insurance utilization, attendance or disability variables, or by aiming for reductions in health risks and projecting the associated cost savings. Effective estimates factor in the cost of the Company Wellness Programs as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, United States Health Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20 percent of workers that made up 80 percent of the costs. We’ve addressed that, and now we’re paying attention to those who are active and Finding Wealth Through Wellness 8 keeping them healthy. Wherever you are on the continuum, there are opportunities.”

3. Establish a cross-functional wellness group – Companies need to identify potential group members who can be champions of wellness within the company. It is valuable that the group is representative of the demographic and functional diversity of workers so that it can credibly address any specific needs groups may have. This group will serve as the voice and face for the Company Wellness  within the company. Best practice employers integrate members from human resources, communications, company development and management. Using the utilization analysis as a guide, the wellness group ought to evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that workers will be receptive to.

4. Build buy-in from management – The most effective Company Wellness Programs have support from the highest levels of a company. Support from management, both in words and in action, sends the message that Company Wellness Programs are a priority for a company. The utilization analysis can be a powerful tool to build the company case for Company Wellness Programs and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into company talks and aligned with corporate objectives.

5. Establish a all-inclusive Employee Engagement plan – The most brilliantly conceived Company Wellness  is meaningless if no workers take part. Effective wellness talks emphasize both health and monetary benefits at the personal and company level. According to a 2004 survey by Towers Perrin, only 28 percent of workers say their company communicates about Health Care issues other than cost. In addition, wellness-related information ought to be a part of existing company talks efforts and not coupled solely with benefits talks. This helps elevate the significance of Company Wellness Programs and align initiatives with company objectives.

Additionally, talks around Company Wellness Programs can share personal success stories and supply company progress updates. Successful employers not only use existing talking channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and allows for the sharing of best practices within the company.

Most employers involve medical professionals to advise in the construction, communication and support of the program. The use of outside authorities such as these will increase the credibility of the Company Wellness Programs as well as combat skepticism from workers who may view the company’s motives as merely selfserving.

Another strategy available to employers is to brand their Company Wellness . This move can increase the visibility and acceptance of the offering. Branded wellness programs are most common when employers are also promoting an external campaign around Company Wellness Programs. An example of this is PepsiCo, which launched its HealthRoads Company Wellness  internally along with a consumer campaign, Smart Spot, that puts special labels on healthier food and drink options.

These efforts are more effective when they are not owned solely by the internal communications department, but rather when managers serve as leaders of, as well as take part in, Company Wellness Programs within employers. This creates more immediate accountability and motivation.

6. Measure constantly and consistently – At every step of implementation, a Company Wellness  must be able to show its value to a company. Company Wellness Programs ought to be designed to allow employers to set benchmarks and evaluate behavior change. Assessment ought to consider not only quantitative health measures, but also qualitative measures of stress and employee program engagement. Less than 10 percent of employers do extensive management of medical care cost, employee health risk status or employee satisfaction with benefit offerings, and less than half of employers do any measurement in these areas at all.16

Assessment is only useful if a company explicitly defines what data would constitute success. Potential measures of success comprise:

• Participation rates
• Improved employee program engagement
• Lowering of risk status
• Lowering of direct health costs
• Diminished absenteeism
• Less disability claims

Motorola’s Saenz advises administrators of Company Wellness Programs to track as many measures as possible from the start, even if management only requires one, because it is very difficult to retrieve data later. She notes that even if leadership begins by looking at participation rates, they will eventually want to know about reductions in claims and costs.

Frequent measurement is the only way to build support among management and workers. Nearly half of employers feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of employers do not know how effective existing Company Wellness Programs are regarding various outcomes. Companies ought to conduct utilization analyses each year and reevaluate Company Wellness  priorities based upon changes. In Addition, progress ought to be shared with the wider business community to build support for initiatives. Managers and executives throughout a company are likely to support a program that can prove increased productivity among workers. Effective Company Wellness Programs are designed to be fl exible so they can respond to changes in both company objectives and larger health variations.

Company Wellness Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured onsite gyms and massages, and were used as recruitment tools for young workers searching for nontraditional work environments. However, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and employers returned to a more traditional benefit structure focused on managed healthcare.

In recent years, as Health Care costs have spiraled out of control, employers have explored the potential of Company Wellness Programs as a cost-saving strategy. Companies 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). Company Wellness Programs can help decrease the costs associated with:

Health Care premiums – The cost a company pays for health care insurance: According to a 2005 study by Hewitt, the Health Care 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 employers grew 11.5 percent, making it nearly a decade straight of double-digit rises in cost.

Short-term disability (STD) – The cost of offering short-term disability insurance to workers: According to a 2004 study by insurance provider Cigna, the average short-term disability claim results in $13,094 in direct disability payments and medical costs. The report also found that 26 percent of claims related to medical events were a result of chronic conditions that could likely be mediated through Company Wellness Programs, and that these cases amount for 56 percent of the STD-related medical costs.

Rates of Absenteeism — The cost of missed work: Rates of Absenteeism cost employers $660 per employee in 2004, with nearly one-third of employers characterizing the trend as a weighty concern.

Presenteeism — The cost associated with workers 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 Company Wellness Programs can decrease both direct and indirect Health Care costs. A 2004 review of Company Wellness Programs revealed that, in total, an investment of $1 by a company in Wellness Programming returned a median cost savings of $2.05 to $4.64.

The President’s Council on Physical Fitness and Sports defines wellness as “a multidimensional state of being describing the existence of positive health in an individual as exemplified by quality of life and a sense of wellness.” Wellness looks beyond the current guide of treating disease and focuses on preventive conduct and healthier lifestyles. Company Wellness Programs, also usually referred to as Company Wellness Programs, serve as a complement to existing insurance-based health benefit programs and can take many forms and address a myriad different potential health conditions. They are a powerful strategy to promote positive lifestyle changes that can result in significant cost savings for employers.

Examples of potential elements of a Company Wellness  comprise of:

Health Risk Assessments / Employee Wellness Screenings – Health Risk Assessments (aka Health Risk Appraisals), evaluate the most prevalent lifestyle-related risks of an individual. HRAs often comprise of screenings for Blood Pressure (BP), cholesterol, glucose levels and other health indicators. These analyses supply valuable benchmarking measures that ideally will allow workers to prevent or decrease their risk of illnesses. Finding Wealth Through Wellness, As noted by Kathryn Krivy, director of Northwestern Memorial Hospital’s Wellness Institute in Chicago, “Medically based Health Risk Assessments are a necessity because in order to affect change in your company, you need to know what the problems are, and you just do not know until you get the data.”

Physical Activity and Weight Management – One of the most popular Company Wellness Programs is for employers to supply access to a fitness center, often onsite. Other potential measures include offering healthier vending machines and cafeteria options, weight management support groups and fitness challenge programs. Some employers, like hospital group Baptist Health South Florida, will even pay for workers to attend weight-loss classes such as Weight Watchers.

Awareness and Education Programs – Most  employers have events approaching the benefits of nutrition, safety or physical fitness, among other topics. Other options are to host a health fair or conduct a disease-awareness campaign.

Behavior Modification – This covers issues like smoking, wearing seat belts, and alcohol use. While many employers will supply assistance for workers looking to modify behavior, some employers, like medical benefits administrator Weyco, Inc., mandate modifications, such as quitting smoking, as a condition of employment.

Alternative Treatments – Other Company Wellness Programs can comprise of absorbing some or all of the costs for massages, stress-reduction activities like yoga or even herbal medicines.