Health And Wellness Programs

According to Gordian Health Solutions, the effectiveness of Employee Wellness Plans in improving health and decreasing medical costs is

directly linked to incentives: the more substantial the incentives, the higher the success rate. Incentives can range from tokens of

achievement, such as t-shirts, water bottles and sports equipment, to more substantial financial awards, such as cash incentives or copay

vouchers for the successful completion of a program.

Nationwide Insurance is seeing results from a small incentive program initiated by one of the company’s on-site nurses. To encourage

lunchtime walking, the staff member has informally launched a “shoelace program” modeled after the karate-belt color system. Employees

progress through the color scale until they reach “black-lace” status. The reward system has resulted in more staff members making

commitments to walk during their lunch hour.

At the high end of the reward spectrum, some companies pay cash to staff members who meet wellness goals. LuK, Inc. offers staff members

$250 for kicking the tobacco habit and remaining smoke free for 12 months. For logging fitness points that add up to 10 miles a month,

staff members are eligible for health assessments, which can result in reward amounts of up to $225.

The most effective motivator, according to Gordian research, comes through linking participation in Employee Wellness Plans directly to

insurance premiums. Doing so clearly demonstrates to staff members the positive effects of wellness on their own medical costs. often, the

first step in linking wellness programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles

altogether. By adding this benefit, companies can encourage staff members to undertake routine screenings and other procedures to respond

to health problems before they become chronic. Early detection benefits both patient health and employer health costs.

Incentivizing Company Health and Wellness Program participation with medical credits

More frequently, companies are going beyond increased wellness care coverage and looking to demonstrate the importance of wellness by

linking participation to staff members’ bottom lines. Worthington Industries has recently rolled out a program that allows staff members to

eliminate their portion of the insurance premium by enrolling in a Healthy Choices Employee Wellness Program.

During the first year of the Healthy Choices program, staff members and their spouses complete Personal Health Assessments and medical

screenings to determine their levels of health risks. Nurses, dietitians and physical fitness specialists are available to help moderate-

and high-risk participants develop individual action plans for enhanced health through the use of educational materials, behavior

modification, telephone help from third-party program health coordinators, and formal health management initiatives. By completing the

assessments, staff members earn their full premium credit. Because some plans at Worthington require no staff member contribution, a cash

award takes the place of a credit in those cases.  During year two of the program, the wellness bar is raised slightly. To continue to

receive the wellness credit, participants in the moderate- to high-risk category will be necessary to work at setting goals with

third-party health coordinators.

Year three raises the bar again, requiring participants to show progress in meeting goals and to continue to work with health coordinators

to reach goals.

After year three, Worthington Industries staff members will be on the wellness track. The company believes that will mean a healthier

workforce and cost savings for staff members and the company. The well being of Worthington staff members is the foundation of this

program, and both staff members and the company are expected to benefit from the long-term advantages of the Healthy Choices Employee

Wellness Program.

While Worthington has taken a broad approach to wellness, other companies have found success in offering incentives in specific areas.

Longaberger, for example, offers a discount on medical policies for staff members who do not use tobacco. An individual staff member who

doesn’t use tobacco saves $7 per bi-weekly pay. For tobacco-free staff members with family coverage whose families are also tobacco-free,

the savings increases to $14 per pay.

The next step: Penalizing harmful behaviors

As it stands, medical is the only type of insurance that doesn’t focus on penalizing for behaviors that put the insured party at risk. With

medical costs rising so dramatically, that could soon change. Just as an accident likely raises auto insurance premiums, increasing

premiums for those who engage in unhealthy behaviors is a possible next step in employers’ attempts to manage medical costs.

Reports that staff members would support this type of action are stacking up. One Ohio employer conducted an informal survey that indicated

staff members would consider it a morale boost if health-conscious staff members were relieved of some of the burden of subsidizing care

for staff members who engage in behaviors that adversely affect their health. Whether or not this type of program gains popularity, one

thing is sure: the need to control the rise in medical costs is becoming ever more pressing.

The Last Step: Getting Started

No matter what strategy, from offering staff members health resources to offering incentives for healthy behaviors, companies have a real

opportunity to improve morale and productivity, reduce absenteeism and control medical costs through wellness. The first step is committing

to taking one, no matter what size effort is appropriate for your company.

Small steps lead to big strides.