Wellness Plans : The Case for Health Promotion Programs.

Health Promotion program means different things to different organizations. 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 comprehensive as building fitness facilities onsite or paying for obesity treatments.

A driving factor behind the push toward wellness spans corporations of all kinds, sizes and cultures –  that is, health care expenditures are spilling over the corporate belt buckle.

The annual cost of medical services in the USA is rising at seven times the rate of inflation.  And the rise in healthcare 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 companies to increase employees’ share of healthcare costs.

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

Businesss are searching for another way. While organizations cannot control many of the supply-side elements contributing to rising health care 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% and medication costs by 77%.  

• Michigan officials estimate lack of exercise cost the state nearly $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 average cost for postnatal care for women who did not 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 U.S. – heart illness, cancer, stroke, chronic obstructive pulmonary illness and diabetes –  are directly linked to unhealthful life choices. Clearly, stimulating healthful habits presents an opportunity to improve employees’ well being, reduce the need for healthcare 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 staff members and corporations.

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

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

From large companies to the corner deli, company owners welcome ways to improve productivity, reduce rates of absenteeism and cut costs. In like fashion, wellness programs can range from modest to elaborate.

In deciding where to focus a company’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 staff members and companys.