How do wellness programs reduce health insurance costs and have they actually worked?

The mental and physical well-being of employees is just as important as working within safety regulations. Not every problem at work stems from safety concerns. Many employers, realizing that prevention and intervention are more productive than dealing with the aftereffects, are more in tune with the emotional needs of their employees and have begun offering employee assistance programs to assist employees with mental and physical challenges. The "Wellness program", is a growing trend in both businesses and insurance companies. While there are many types of programs and incentives, the focus of any wellness program is to promote positive changes in the health of employees.

As we all have seen, Americans are suffering from more obesity and more chronic conditions that are the result of poor health choices. This suffering is all very preventable and businesses have begun taking on the cause quickly and efficiently with their own programs. With the amplified costs of insurance biting down on companies during an already stressful economy, more businesses are looking for ways to enhance benefits while still cutting costs. Managers have seen that in a very short time, a good in-house program can be profitable as well as a morale booster.

Over 80 percent of businesses with 50 or more employees have some form of wellness program in place. While the programs vary from place to place, most of them address both physical and emotional needs of employees and include support services such as smoking cessation, stress management, weight loss plans, exercise programs, nutritional services and health screenings for common conditions such as high blood pressure and diabetes.
Managers are emerging as leaders in the business of healthy living, promoting their own programs by walking the walk in the office. Encouraging a senior leader in your company to become the spokesperson for healthy living is a great motivator. Develop a committee comprised of a variety of employees from managers to the mail clerk to organize activities and encourage commitment of healthy living within their departments. Ask employees to sign a commitment form and then support their activities through encouragement and incentives.
While wellness programs may seem like a win/win situation, companies can spend millions of dollars on them. Despite the cost, companies are recognizing that investing in the health of their employees is much cheaper than dealing with the increasing loss of productivity from sick and unhealthy employees and the rising insurance costs that eat away at their bottom line. Many companies spend half their profits on medical costs for employees in poor health, but with a successful wellness program can show an increase in productivity, lower rates of workman's compensation and medical claims and slower turn over.

Although this is not the only program available to businesses researching long-term changes to their health plans, it is a very cost effective and positive way to update the way your company views its employees and their needs. It does require some up front financial and time commitment and a good way to handle ongoing maintenance is to assign a committee comprised of the key people from various departments to handle new promotions and activities in the workplace.

Employers are realizing quickly that retaining healthy, happy employees is in itself a valuable commodity. More and more are working to offer creative benefits that will help retain quality employees without damaging the productivity bottom line. So next time you're' looking for a jump start with a new company, ask about how the company supports the health of their employees. Chances are you'll both be happier if you feel appreciated and supported, and your employer will get 100 percent out of you when you're on the job.

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