Wellness Plans : Advantages of Wellness Programs.

The costs of healthcare have been rising more than 10% annually for several years. A substantial amount of the money spent in the healthcare system treats costly diseases and diseases.

• Approximately 95% of the $1.4 trillion that we spend as a nation on health goes to direct medical services, while about 5% is allocated to preventing disease and promoting health.

• Potentially, 50% to 70% of all illnesses are avoidable as they are associated with modifiable health risks.

• In an effort to optimize employee health, reduce avoidable health care utilization and enhance work performance, and in turn lower health care costs and improve employee satisfaction and retention, many companies are developing, or are interested in developing, Health Promotion Programs for personnel.

The advantages of corporate health promotion are well documented. More than 120 scientific research studies repeatedly show themes like improvements in health outcomes coupled with high Return On Investment (ROI). Some major findings include the following –

• Savings of $3.48 in lowered healthcare costs per dollar invested.

• Savings of $5.82 in decrease absenteeism costs per dollar invested.

• Return On Investments of at least $3 to $8 per dollar invested within five years of wellness program implementation.

• Lifestyle behavior modification programs –  $3 to $6 Return On Investment within 2 to 5 years.

• Self care, decision support wellness programs –  $2 to $3 Return On Investment (ROI) within a year.

• Disease management programs –  $7 to $10 Return On Investment within a year.

By offering health promotion programs, employers aren’t only providing an additional service for staff members, but they’re also gaining financially. Further, the impact of a health promotion program goes beyond decreased health care cost and ROI.

A health promotion program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs.

* Source –  Rees, C., and Finch, R. (2004). Health Improvement –  A comprehensive guide to designing, implementing and reviewing health promotion programs. National Corporation Group on Health, 1 (1), 1-7.