The Case for Wellness Programs.

Wellness program means different things to different corporations. Effective wellness programs can be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better consuming. They can be as robust as building fitness facilities onsite or paying for obesity treatments.

A driving factor behind the push toward wellness spans organizations of all types, sizes and cultures –  that is, health care expenses 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 health costs is one boom pundits expect our economy to sustain.1

This trend makes it increasingly challenging for businesss to maintain current levels of insurance coverage. In 2003, health care inflation forced 65% of businesses to elevate employees’ share of medical costs.

Seventy-nine percent of big 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.

Companys are searching for another way. While corporations can’t control many of the supply-side elements contributing to rising healthcare 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 percent and medication costs by 77 percent.  

• Michigan officials estimate lack of exercise cost the state almost $8.9 billion in 2002, a cost estimated to be largely borne by employers 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 didn’t receive prenatal care was $2,341 more than for women who had. and the indirect costs of unhealthy behavior can be just as high.

Data shows that healthier employees are more productive, spending more time at work and showing increased “presenteeism,” or productivity, while there. Furthermore, healthier employees use fewer medical services.

The five leading causes of death in the United States – heart illness, cancer, stroke, chronic obstructive pulmonary illness and diabetes –  are directly linked to unhealthful lifestyles. Obviously, encouraging healthful habits presents an opportunity to improve employees’ well being, reduce the need for healthcare services and help control costs.

Offering employee wellness benefits – large or small – represents an intersection between corporate social responsibility and responsibility to stakeholders. Between employee health and corporate health. It’s often the right thing to do for workers and companys.

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

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

From big companies to the corner deli, corporation owners welcome ways to increase productivity, lower absenteeism and cut costs. Similarly, wellness programs can range from modest to elaborate.

In deciding where to focus a corporation’s limited resources, looking at costs, benefits and best practices is a good beginning point. This section profiles six aspects of wellness and explores their benefits to employees and employers.