Company Health And Wellness Programs

Studies show that roughly five percent of workforce drive about 80 percent of your health benefit costs.

No shocker here –  Smokers and obese staff are the highest risk group for developing the sorts of chronic health problems that send costs through the roof.

A small, but quickly growing number of businesss are taking desperate measures to avoid the costs associated with these staff.  The step could be broken down into three levels of aggressiveness and potential risk/reward.

Level one –  the company installs a wellness program in which non-smoking staff members and those who commit to maintaining a healthful weight receive financial incentives that lower their share of monthly insurance premiums.

Level two –  the employer disqualifies job candidates who smoke or are significantly overweight from hiring consideration. Alternatively, some firms require new hires to undergo a health risk appraisal as a condition of being hired.

Level three –  the corporation docks pay or fires workers who fail to control their lifestyle-related health risks. Example –  A corporation called Clarian Health has sent notifications to workers that starting in 2009, workers who smoke or chew tobacco are going to be charged $5 per paycheck.

Are these strategies legal? at level one, the answer is a qualified yes. HIPAAs non-discrimination rules permit such incentives under a few conditions.

Wellness incentives walk a fine line respecting HIPAAs non-discrimination rules. It is legal to reward workforce for wellness participation but its illegal to punish those who fail to improve their health.

Example – If an staff member follows a weight-loss program in good faith but fails to lose weight, you can’t withhold the incentive. In like fashion, if an staff member fails repeated tries to quit smoking, you’re still legally obligated to give them another shot next year.

Also keep in mindthat, by law, the size of the reward or penalty under your wellness program cant exceed 20% of the sum cost of coverage.

The other two are still largely uncharted waters in the courts. Businesss considering these policies should proceed with extreme caution. Remember that the question of “can you do it” (i.e., is it legal?) is different from “should you do it?” (i.e., is it good business?)

Wellness programs come in all shapes and sizes. But regardless of plan design there are five common components that set the successful wellness programs apart from the rest.

At their core, wellness programs require constant monitoring and periodic adjustments.  The wellness programs that get mediocre results are the ones that are left to run on autopilot. That’s why it’s vital to –

1. Know thine enemy You have to know what’s driving your largest claim costs on your health care plan – both among staff members and their dependents.

2. Create realistic expectations. With wellness, what an employer gets will nearly always depend on how much it spends, how well it plans and how well it sustains communications with participants and the provider.

3. Maintain strong communications.  The health promotion programs that achieve the greatest success are those which are communicated aggressively from the get go and are sustained. Repetition is your friend when doing worker education.

4. Integrate wellness with other benefits. Real-life experience has shown that you ought to consider your staff member assistance programs (EAPs) an extension of the health promotion program. You should also consider issues like absenteeism, disability and worker’s compensation to be pieces of the wellness puzzle.

5. Practice what you preach.  The key to ensuring employee buy-in is for senior level management to lead the wellness program by establishing a positive example. If senior managers are unwilling to participate and address their own health issues, don’t expect many staff members to take the wellness program seriously.

Here’s more evidence that health promotion programs pay for themselves –

Over the last two years, one corporation in five has seen meaningful improvement in employees’ health status – and started to stabilize their costs – as reported by one study.

Among firms noting improvement, almost two-thirds (64%) feature wellness programs offering incentives for healthier life choices.

Here are three twists on traditional incentives that’re getting good results –

1. Health coach outreach

A lot of firms require personnel to work with an individual health coach in order to get a discount on monthly premiums or earn cash incentives.

The most common set-up –  on a regular basis, the worker must set up appointments with and report to (either over the phone or face to face) his or her health Coach.

But experience has shown there’s often a high dropout rate.

People  get off to a great begin – and they’re enthusiastic about the incentive – but once they realize there’s some effort involved, they lose interest.

The good news –  Firms have found a simple-to-arrange alternative that keeps individuals  on the right track. Rather than requiring workers to contact the wellness Coach, a growing number of businesses require participants to take calls from the wellness Coach.

Potential result –  Fewer folks fall off the wagon. There’s no outreach effort involved, and the wellness coach keeps individuals  accountable.

2. Nutritional education/therapy

A newer – and cost-effective – feature in the battle against employee obesity –  offering an employee nutrition-education program administered by a specialist nutritionist.

Just 11% of companies – 18%  of large businesss and 7.5% of small to medium ones – have such health promotion programs, as reported by SHRM’s most recent benefits survey.

Even fewer offer (via their EAPs) nutritional therapy for people  with consuming disorders. But available data on these wellness programs shows they normally pay for themselves.

The stronger the firm’s emphasis on teaching healthy consuming, the faster and more dramatic the reduction in major health claims.

Common plan features –  lunch and learns featuring healthy food choices, giving out nutrition-linked gift cards and extending obesity-prevention incentives to individuals ’s family members.

3. Assertive use of tobacco cessation

A small, but rapidly growing number of corporations are taking more aggressive measures to avoid the costs associated with employees who smoke.

The step may be broken down into three levels of aggressiveness and potential risk/reward.

Level one –  the business installs a wellness program in which non-smoking personnel and those who commit to maintaining a healthful weight receive financial incentives that lower their share of monthly premiums.

Level two –  the business disqualifies job candidates who smoke from hiring consideration. Alternatively, some firms require health risks assessments as a condition of being hired.

Level three –  the company docks pay or fires staff who fail to control their lifestyle-related health risks.

Example –  Clarian Health made news last fall for sending notice to workforce that as of Jan. 1,  2009, individuals  who smoke or chew tobacco would begin be charged $5 per paycheck.

Are these strategies legal? at level one, the answer is a qualified yes. health insurance portability and accountability act (HIPAA)s non-discrimination rules permit such incentives within limits.

In a nutshell, it’s legal to reward personnel who quit tobacco use but illegal to punish those who try and fail. When an staff member tries but fails to quit tobacco use, you’re still legally obligated to give them another shot next year.

Also keep in mindthat, by law, the size of the reward or penalty under your health promotion program can’t exceed 20% of the sum cost of coverage.

At levels two and three, it remains to be seen if such policies would hold up in court. Proceed with caution.

Wellness programs are a long-term investment. But how long should you wait for results?

Finance and the CEO want hard numbers to show Return On Investment.  And wellness Return On Investment is tougher to calculate than, say, a 401(k).

18-month guideline

Recent studies have established some benchmark data on wellness Return On Investment you are able to use as a guideline. It’s useful whether you already have a health promotion program or are thinking about starting one.

It normally takes at least 18 months from the launch of a health promotion program to see any results in your healthcare plan bottom line.

For many firms, 18 months is the point at which workers’ improving health begins to cancel the cost of sponsoring and administering the health promotion program.

By and large, the long-term cost savings from a health promotion program will be driven by how much you’re willing to spend. Generally, organizations get what they pay for – both in time and money invested.

As a rule of thumb, the average cost to the corporation is about $3 to $5 per participating worker per month. Within three years of launch, you must be seeing significant savings.

The typical ROI tends to be about $4 to $5 saved for every dollar spent. So how can you manage the costs in the short-term to achieve the long-term savings?  and how can you maximize the long-term payoff?

Consider making wellness programs budget-neutral

For many companys, the most effective way to manage the cost of a health promotion program in the start-up phase is to make it a budget-neutral expense.

In other words, the wellness program neither adds to your medical costs at the outset, nor lowers them. Example –  You plan to roll out a wellness program effective Jan. 1.  The wellness program will cost the organization $5 per staff member.

You can roll the $5 per month cost directly into the employee’s monthly share of their health care premium. In this age of continuous cost-shifting, most staff members are used to seeing small increases in their monthly contributions each plan year.

Just be sure you’re not hitting folks with a large hike on top of that $5. Comparably designed wellness programs pay off about the same – meaning workers buy in and participate at the same rate – whether they’re budget neutral or the corporation absorbs the cost.

But when workers get clobbered by large-scale contribution hikes at the outset, they often resist the wellness program.  The long-term Return On Investment (ROI) for these wellness programs is usually disappointing.

If you’re faced with a situation where achieving a budget-neutral wellness program would trigger push-back, your firm is better off absorbing most or all the wellness costs.

The biggest hurdle is to get over the hump for those first 18 months or so.

A few years ago, business health fairs were all the rage. Now they’re making a comeback, with a slight twist.

In the past, the fairs often better served the provider(s) who came onsite than the needs of the hosting business or their staff. More recently, organizations have refined the planning of the events to serve specifically to launch or promote a health promotion program.

To be successful, the events need to serve two purposes – improveing staff member education and building their enthusiasm to take part in the wellness program.

To make certain you and your staff get the most out of a wellness fair, it helps to be aware of the plusses and minuses – and some little touches that can mean the difference between a so-so event and a hit.

Health Fairs –  Double-edged sword

On the plus side, workers received easy-to-grasp information on key wellness topics such as illness detection, symptom control and smarter medication practices. They also receive important services like free blood-pressure screenings.

On the down side, some professionals said the more newfangled events were more like “disease fairs” than “health fairs.” In other words, the tone was little too somber and staff weren’t in particular tuned in because they weren’t enjoying themselves.

Wellness program consultant Dr. Ron Goetzel believes that the savviest firms strike a balance in their wellness fairs. Stick with the screenings, but also feature exhibitors who offer “lighter,” more enjoyable services. Examples –

• A booth from a local health-food store

• A chair-massage station

• elder-care info from the AARP, or

• A “complimentary medicine” info booth (e.g.,a chiropractor or an acupuncturist).

Offering incentives

In many cases, workers still need an incentive to attend the fair and get the desired screenings, besides to doing the fun stuff. Some real-life health promotion programs that’ve worked –

• A contest offering prizes to staff members who visit every station

• quizzes and prizes based on info from different providers’ literature

• flex-scheduling or time-off incentives for getting screened (e.g., a comp day or an additional afternoon off), and

• cash incentives (as little as $20 and as much as $100) to people  who voluntarily participate in various screenings.

Medical research has long shown quitting use of tobacco at any age can improve a person’s health.

But a Duke Univ. shows that the group you might think would be the least likely to quit – individuals  over the age of 50 – may actually have the best odds for quitting through a use of tobacco cessation program.

Scientists tracked 573 older patients over 10 years. They found that just 16% of those who joined the use of tobacco cessation program later returned to use of tobacco.  Meanwhile, previous research has found young smokers who attempt to quit have a 35% to 45% relapse rate within two years.

Bottom line –   Given the aging staff member population and the cost of retiree healthcare, you may want to keep trying with tobacco use cessation education for your older personnel.

A lot of organizations recognize the need for a comprehensive strategy to help their employees be the best they can be.

They also know that successful and sustainable wellness programs are much more than a few “lunch and learn” programs.

Your wellness program should include a wide range of key elements, including –

• A clear agenda or statement of objectives.

• A plan characterized by passion.

• an effective leader who is creative and organized.

• A focus on short-term outcomes combined with an overall vision.

• A measurable strategy (what’s important gets measured!).

• A policy of celebrating and communicating success.

Planning Your Wellness Program

Plan carefully to ensure that your wellness program is seen as part of a broad commitment to maintaining the health and safety of all employees. Yes, creating a good plan takes a lot of effort and time (and sometimes resources).

But planning is essential and well worth the investment required. as the saying goes, “failing to plan is planning to fail.”

You may start by conducting a recent survey of staff member needs and interests. If you take this route, pay attention to the results and plan therefore. If you don’t, the employees will not support the program.

Accumulating information about what you are already offering is also a good idea. for  instance, you could be surprised by your company or corporation’s current wellness and health policies.

Another important step is to establish an agenda and/or measurable goals to help you determine priorities, timelines and the resources required to launch the program. be bold and creative in your planning, but also realistic.

Leadership

The leader of your wellness program must be able to wear many hats. the leader’s duties include –

• Developing a vision of the wellness program after receiving input from all interested workers.

• Communicating ideas and a rationale throughout the organization (to senior level managers and fellow employees alike).

• Keeping others enthusiastic about and committed to a wellness program.

• Serving as a role model and wellness coach.

• Developing and maintaining leadership skills such as giving effective presentations and being well-organized.

Good leaders avoid becoming overwhelmed by overly ambitious and complex plans. You could want to stick to short-term goals at the starting so that you get immediate and visible results.

These first steps are the basis for a successful wellness program.

Good leaders involve as many people  as possible in the program. for example, you will want to form a committee made up of a diverse group of employees to provide advice during the planning phase. This approach will –

• Be sure to help you to obtain valuable information from all parts of the company.

• Develop ambassadors who’ll help you implement the wellness program.

Keeping Score and Celebrating

Always rememberhow you will monitor progress and evaluate the success of your wellness program. Evaluation permits you to –

• Identify areas of excellence.

• Identify factors that affect participation in your programs.

• Gain management’s support for your efforts (and maintain that support).

• Better understand issues that need attention.

• Learn from mistakes and change the program to keep it on the right track.

When you evaluate your program, you can measure such things as –

• Employee absences.

• Worker turnover rates.

• the cost of your staff member assistance program.

• the cost of benefits, including short-term and long-term disability payments.

• the cost of your drug plan.

• Accident rates and safety records.

• Employees’ participation in wellness programs (and whether they’re staying in the programs).

• Changes in employees’ health habits.

• Level of employees’ awareness of healthful lifestyle issues.

• Results of your environmental wellness audit.

• Other noticeable changes in areas like morale and job satisfaction.

A good communications plan provides ongoing information to employees (including senior managers) and fosters excitement about the wellness program.

Positive reinforcement is part of an effective communications plan. for  instance, you might recognize individuals  who have helped set up the program or offer tangible rewards for achieving goals.

Everybody needs to know whether workers are getting involved, enjoying the activities and getting some benefit from them. Showing that a wellness program has financial benefits is often an important factor in maintaining strong support from the top.

When you pay attention to the key elements of your wellness program and communicate openly and continuously while planning and delivering it, you’ll lay a solid foundation and leave a legacy that lasts.

The businesses with the most cost-efficient health care plans are the ones that streamline the services staff receive for both their physical and psychological health.

As a long-term goal, having your general health plan, employee assistance program (EAP) and wellness program communicating regularly with one another about employees’ treatments is the single best way to reduce redundant or contradictory treatments, eliminate unnecessary claims and enhance the quality of the plans for which you pay.

Let’s look at the relationship between your health promotion program and your EAP to illustrate the importance of attacking health costs cross a wide front.

You can begin a wellness program with a health risk assessment and then, if appropriate, roll out a use of tobacco cessation program or a weight reduction program.

But ultimately you want to be certain that your wellness vendor works and your employee assistance program vendor.

Here’s why –  It’s very common for an staff member to contact the employee assistance program because the individuals feels depressed about his or her weight. What you want is for the employee assistance program provider to treat the employee’s depression and behavioral issues, plus you want the employee assistance program to refer the staff member to the wellness program to deal with the root cause of the problem – obesity.

The same thing goes with the relationship your health promotion program and your workers’ comp provider, STD and LTD providers, rehab people , and/or illness managers. You want all them talking to – and sharing data with – each other. When they’re not, it’s costing you money.

In general, the businesss who achieve the greatest cost savings through their wellness programs are the ones who overlap wellness with behavioral and occupational health issues.

How does physical activity fit into a full-time employee’s busy schedule? Often, it doesn’t.

One possible solution to this challenge is to make exercise a part of the work day. Clearly, being active at work is beneficial for workers.

But companys also benefit from having fit, energetic and healthy workers who are more productive.

The challenges

Your job takes up a lot of your time. In addition to the hours you spend actually working, there’s the time required to get to and from work and take lunch and rest breaks during the work day.

In the end, there are a not many hours left over for the rest of your life. This work life imbalance is namely true for Alberta, where statistics show that we work exceptionally hard.

A lot of jobs today are sedentary, and many American Citizens drive to work. the pressures of work might also cause us to eat lunch at our desks and skip breaks.

Then, after work or on the weekends we juggle household chores, family responsibilities and social engagements.

Wellness Programs –  Get began on a workplace fitness program

Management plays a key role in creating a culture that promotes health. the leaders at your workplace influence the various policies and the informal or formal practices, and these policies and practices affect your attitude towards healthy active living.

Start by talking to your boss about the advantages of a healthful active workplace. the best way to ensure the success of a workplace fitness program is to have the management on side and cheering you on.

Ask your boss to consider taking these actions –

• Send a memo or message about the importance of health and healthy living that encourages staff to take an active break each day.

• Give for flexible work hours that help staff to be more physically active. for example, they could need to take a longer lunch break to attend an exercise class, making up the time by coming to work early or staying late.

• Make available a meeting room or other suitable office space for noon-hour yoga or exercise classes, and hire a teacher to lead them, or use videos.

When your boss agrees to support a workplace fitness program, don’t forget to say thanks.

You do not need an on-site gym

Only very big businesses can afford on-site fitness facilities such as exercise equipment or squash courts. Still, most businesss can take other affordable steps to support workers who wish to become more active.

For example –

• Arrange for discounted fees for staff members at a fitness club, recreation centeror YMCA facility.

• Install showers and a place to hang a towel. (Be certain the showers are cleaned regularly and that women who use them will feel secure.)

• Install bicycle racks or a locked enclosure that is safe, conveniently located and well lighted.

• Hold walking meetings and set up lunch-hour walking groups

• Make employees aware of safe and pleasant walking routes near the workplace, as well as nearby facilities that offer fitness programs (such as walking, swimming, running, yoga, stretching).

• Hire a qualified instructor to teach staff about health, fitness and how to become more active.

Any size and type of workplace can support workers who wish to be physically active. It’s highly desirable to get management on side.

Even if your boss isn’t supportive, you can still find ways to get moving more. Make sure to set up activities for groups and individuals, and encourage your coworkers to join in.

Trying to do more with less money? Here are three proven ways to align the dollars and cents of a health promotion program in your budget.

Common thread –  the way you prepare – and control – your budget for a health promotion program is critical to its success.

1. Top-down health promotion budget

Depending on the size of your company and health promotion program, you could have full budget responsibility or may need to work with a C-level who has budgeting specialistise.

Regardless of the arrangement, you’re likely to face one of two distinct challenges –  a top-down budget or a zero-based budget.

A top-down budget is when you’re given a finite dollar amount and told to run the wellness program within the limit. When that’s the case, here are three critical questions to ask –

• Does this limit include money set aside for worker incentives and future programs?

• Should we keep long-tenured health promotion programs that keep going up in price, and

• Does Benefits/HR have to deliver all education about the health promotion program, or is there additional funding to hire staff?

2.  Zero-based wellness budgeting

In zero-based funding, you submit to senior level management an itemized list of the wellness programs/features you want and the cost of each. Best practices –

• Rank health promotion programs by priority (health-risk assessments should be at or near the top)

• Indicate which costs are fixed and which are variable, and

• List ways to incorporate existing resources (like an employee assistance program program) for a better return on investment.

3. Estimating wellness Return On Investment

On average, wellness programs ordinarily take at least 18 months to break even. After three years, you ought to see savings.

When not, it’s time to take a fresh look at the wellness program design.