Company Wellness : What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Assists Reduce Costs

• A 2003 analysis of one large U.S. company 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 healthcare costs for its personnel between 1995 and 1999 by promoting healthy life choices.

Healthcare expenditures decreased $224 per staff member per year (averaged over four years), and this rate improved over time.  The company found most benefits in the third and fourth years after wellness program initiation.

• A 2004 Univ. of Michigan study of 23,500 General Motors staff showed that nonexercising staff claimed at least $100 more a year in healthcare costs than exercisers.

The study  also announced that obese, sedentary staff 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 workers $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 Health Promotion Program requires staff time in addition to money. Some larger businesses may spend 20 hours per week for three to six months preparing all the steps prior to launching a Health Promotion Program.
Company Costs
Monetary costs can fluctuate widely, depending on whether the company pays all costs, the personnel pay all costs, or the costs are shared.
A 1992 study indicated that 28 percent of organizations spent $5 or less per employee, and 19 percent spent between $6-10 per employee.
The Wellness Council of America estimates the cost per worker to be between $100 and $150 annually for an effective health promotion program that produces a return on investment of $300 to $450. A sample expenditure for various levels of health promotion programs include –
Program Type
A minimal (largely paper) health promotion program          $1 – $7         

A moderate wellness program
A medium health promotion program with a few activities       $16 – $35            

A fairly robust wellness program             $36 – $75      

A very robust, effective wellness program       $76 – $112