What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Helps Reduce Costs

• A 2003 analysis of one big USA  business found that simply assisting staff members control their blood pressure (BP) alone can save $547 per person per year.

• Johnson and Johnson claims to have saved $38 million in health-care costs for its workers between 1995 and 1999 by promoting healthful lifestyles.

Health expenses decreased $224 per worker per year (averaged over four years), and this rate improved over time. the business found most benefits in the third and fourth years after program initiation.

• A 2004 Univ. of Michigan study of 23,500 General Motors employees showed that nonexercising employees claimed at least $100 more per year in health-care costs than exercisers.

The published study  also reported that obese, sedentary workers who began exercising at least twice a week lowered their costs by an typical of $500 a year.

• the Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that paid employees $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays per year, producing a cost savings of $15.60 per program dollar spent.

Staff Time                  

Building a successful Wellness Program requires staff time as well as money. Some larger organizations may spend 20 hours per week for three to six months preparing all the steps before launching a Wellness Program.                  

Company Costs                  

Monetary costs can fluctuate commonly, depending on whether the business compensates all costs, the employees pay all costs, or the costs are shared.                  

A 1992 study indicated that 28 percent of businesses spent $5 or less per worker, and 19 percent spent between $6-10 per worker.                  

The Wellness Council of America estimates the cost per employee to be between $100 and $150 per year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of programs include –                   

Program Type                  

A minimal (largely paper) program          $1 – $7         

A moderate program                   

A medium program with several activities       $16 – $35            

A fairly robust program             $36 – $75      

A very comprehensive, effective program       $76 – $112