Employer Wellness

Wellness program means different things to different corporations. Effective wellness programs may be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better consuming. They may be as comprehensive as building fitness facilities onsite or paying for obesity treatments.

A driving factor behind the push toward wellness spans organizations of all types, sizes and cultures –  that is, healthcare expenses are spilling over the corporate belt buckle.

The annual cost of medical services in the United States 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 companys to maintain current levels of insurance coverage. In 2003, health care inflation forced 65 percent of companies to elevate employees’ share of health costs.

Seventy-nine% of big firms said they’ll increase workers’ share of medical costs in 2004.2 But with lost benefits and increased financial burdens come lost morale and productivity.

Corporations are searching for another way. While businesses 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 disease 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 health care costs by 36 percent and medication costs by 77 percent.  

• Michigan officials estimate lack of exercise cost the state almost $8.9 billion in 2002, a cost estimated to be largely borne by businesss through insurance premiums and lost productivity.

• the not-for-profit National Committee for Quality Assurance reports that the estimated average 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 could 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. Clearly, encouraging healthful habits presents an opportunity to improve employees’ well being, reduce the need for health care services and help control costs.

Offering staff member wellness benefits – big or small – represents an intersection between corporate social responsibility and responsibility to stakeholders. Between staff member health and corporate health. It’s often the right thing to do for staff members and businesss.

Research by Traveler’s Corp. shows a $3.40 return for every dollar invested in Wellness Programs. for a lot of companies, the choice to offer employee wellness benefits is easy-one where conscience and pragmatism align.

The challenge arises in choosing  the programs that’ll deliver the most impact based on trends in your employees’ health risks and medical claims costs.

From big businesses to the corner deli, business owners welcome ways to improve productivity, lower absenteeism and cut costs. In like manner, wellness programs can range from modest to elaborate.

In determining 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 employees and companys.