Wellness program means different things to different businesses. Effective wellness programs may be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better eating. They may be as robust as building fitness facilities on-site or paying for obesity treatments.
A driving factor behind the push toward wellness spans organizations of all kinds, sizes and cultures – that is, healthcare expenses are spilling over the corporate belt buckle.
The annual cost of medical services in the U.S. is rising at seven times the rate of inflation. and the rise in medical costs is one boom pundits expect our economy to sustain.1
This trend makes it increasingly difficult for employers to maintain current levels of insurance coverage. In 2003, health care inflation forced 65 percent of corporations to increase employees’ share of medical costs.
Seventy-nine percent of big firms said they will increase workers’ share of health care costs in 2004.2 But with lost benefits and increased financial burdens come lost morale and productivity.
Businesss are searching for another way. While corporations cannot control many of the supply-side elements contributing to rising healthcare costs-malpractice insurance rates, the nursing shortage-they can help curb demand. That’s why efforts are being redirected from illness to wellness.
The case for wellness is supported by an ever growing body of evidence demonstrating the high costs associated with controllable health risks –
• One study reports that obesity raises healthcare costs by 36 percent and medication costs by 77 percent.
• Michigan officials estimate physical inactivity cost the state almost $8.9 billion in 2002, a cost estimated to be largely borne by corporations through insurance premiums and lost productivity.
• the not-for-profit National Committee for Quality Assurance reports that the estimated typical cost for postnatal care for women who didn’t receive prenatal care was $2,341 more than for women who had. and the indirect costs of unhealthful behavior can be just as high.
Data shows that healthier staff members are more productive, spending more time at work and showing increased “presenteeism,” or productivity, while there. Furthermore, healthier staff members use fewer medical services.
The five leading causes of death in the United States – heart disease, cancer, stroke, chronic obstructive pulmonary disease and diabetes – are directly linked to unhealthful lifestyles. Obviously, encouraging healthful habits presents an opportunity to improve employees’ well being, reduce the need for health care services and help control costs.
Offering worker wellness benefits – big or small – represents an intersection between corporate social responsibility and responsibility to stakeholders. Between worker health and corporate health. It’s often the right thing to do for workers and businesss.
Research by Traveler’s Corp. shows a $3.40 return for every dollar invested in Wellness Programs. for many businesses, the option to offer worker wellness benefits is easy-one where conscience and pragmatism align.
The challenge arises in picking the programs that’ll deliver the most impact based on trends in your employees’ health risks and medical claims costs.
From large corporations to the corner deli, business owners welcome ways to boost productivity, lower absenteeism and cut costs. In like fashion, wellness programs can range from modest to elaborate.
In deciding where to focus a corporation’s limited resources, looking at costs, benefits and best practices is a good starting point. This section profiles six aspects of wellness and explores their benefits to workers and employers.
Corporate Wellness Companies