Posts from — September 2010
Selecting the Right Kind of Wellness Program.
Research studies show that untargeted health-promotion campaigns have little long-term impact.
Chronic diseases, which rob person and families of their health and happiness, represent major costs to employers in the form of health-care and disability costs, lost productivity, and absenteeism.
Wellness Programs should address risky behaviors that can help your employees eat healthier, increase their level of physical activity, help reduce stress, lower blood pressure and cholesterol, and quit use of tobacco. Wellness programs should focus on assisting employees achieve and maintain their optimal health status.
Robust worksite-health programs focused on changing lifestyle behavior have been proven to yield a $3 to $6 return on investment for each dollar invested. It takes about three to five years after the initial program investment to realize these savings.
Ninety-three percent of United States corporations offer some kind of health-promotion program for their employees, but is it the right type?
Primary Kinds of Wellness Programs
Programs focusing on illness management. These programs monitor and treat specific illnesses. Illness management follows the 80/20 rule – 80 percent of health-care costs are spent on 20 percent of employees.
Illness management is stated to have a $7 to $10 return on investment within a year. the 20 percent of employees requiring the greatest medical expenditures today are generally different 20 percent who’ll cause the greatest medical expenses a year or two down the road.
Programs focusing on health enhancement and risk management. These programs focus on lifestyle behavior change, and offer a $3 to $6 return on investment within two to five years, as reported by a 2004 report issued by the National Business Group on Health.
It is important to note that a $3 to $6 return on an entire staff member population produces a higher total savings than does disease management.
Good Data Drives Good Company Decisions
Based on more than 120 research studies, the National Company Group on Health announced that, within five years of program implementation, overall benefit-to-cost ratios (return on investment) of –
$3.48 in decreased health-care costs per dollar invested.
$5.82 in lower absenteeism per dollar invested.
September 1, 2010 No Comments