Worksite Wellness Program Incentives

According to Gordian Health Solutions, the effectiveness of Employee Wellness Programs in improving  health and reducing health care costs is directly linked to incentives: the more substantial the  incentives, the higher the success rate. Incentives can range from tokens of achievement, such as  t-shirts, water bottles and sports equipment, to more substantial financial awards, such as cash  incentives or copay vouchers for the successful completion of a program.

Nationwide Insurance is seeing results from a small incentive program initiated by one of the  employer’s worksite nurses. To encourage lunchtime walking, the worker has informally launched a  “shoelace program” modeled after the karate-belt color system. Employees progress through the color  scale until they reach “black-lace” status. The reward system has resulted in more employees making  commitments to walk during their lunch hour.

At the high end of the reward spectrum, some corporations pay cash to employees who meet wellness  goals. LuK, Inc. offers employees $250 for kicking the tobacco habit and remaining smoke free for 12  months. For logging fitness points that add up to 10 miles a month, employees are eligible for health  assessments, which can result in reward amounts of up to $225.

The most effective motivator, according to Gordian research, comes through linking participation in  Employee Wellness Programs directly to insurance premiums. Doing so clearly demonstrates to employees  the positive effects of wellness on their own health care costs. often, the first step in linking  wellness programming to insurance coverage is lowering deductibles for wellness care or eliminating  deductibles altogether. By adding this benefit, corporations can encourage employees to undertake  routine screenings and other procedures to respond to health problems before they become chronic. Early  detection benefits both patient health and employer health costs.

Incentivizing Company Health and Wellness Program participation with health care credits

More frequently, corporations are going beyond improved wellness care coverage and looking to  demonstrate the importance of wellness by linking participation to employees’ bottom lines. Worthington  Industries has recently rolled out a program that allows employees to eliminate their portion of the  insurance premium by enrolling in a Healthy Choices Employee Wellness Program.

During the first year of the Healthy Choices program, employees and their spouses complete Individual  Health Assessments and medical screenings to determine their levels of health risks. Nurses, dietitians  and physical fitness specialists are available to help moderate- and high-risk participants develop  individual action plans for improved health through the use of educational materials, behavior  modification, telephone help from third-party program health coordinators, and formal health management  initiatives. By completing the assessments, employees earn their full premium credit. Because some  plans at Worthington require no worker contribution, a cash award takes the place of a credit in those  cases.  During year two of the program, the wellness bar is raised slightly. To continue to receive the  wellness credit, participants in the moderate- to high-risk category will be necessary to work at  setting goals with third-party health coordinators.

Year three raises the bar again, requiring participants to show progress in meeting goals and to  continue to work with health coordinators to reach goals.

After year three, Worthington Industries employees will be on the wellness track. The employer believes  that will mean a healthier workforce and cost savings for employees and the employer. The well being of  Worthington employees is the foundation of this program, and both employees and the company are  expected to benefit from the long-term advantages of the Healthy Choices Employee Wellness Program.

While Worthington has taken a broad approach to wellness, other corporations have found success in  offering incentives in specific areas. Longaberger, for example, offers a discount on health care  policies for employees who do not use tobacco. An individual worker who doesn’t use tobacco saves $7  per bi-weekly pay. For tobacco-free employees with family coverage whose families are also  tobacco-free, the savings increases to $14 per pay.

The next step: Penalizing harmful behaviors

As it stands, health care is the only type of insurance that doesn’t focus on penalizing for behaviors  that put the insured party at risk. With health care costs increasing so dramatically, that could soon  change. Just as an accident likely raises auto insurance premiums, increasing premiums for those who  engage in unhealthy behaviors is a possible next step in employers’ attempts to manage health care  costs.

Reports that employees would support this type of action are stacking up. One Ohio employer conducted  an informal survey that indicated employees would consider it a morale boost if health-conscious  employees were relieved of some of the burden of subsidizing care for employees who engage in behaviors  that adversely affect their health. Whether or not this type of program gains popularity, one thing is  sure: the need to control the rise in health care costs is becoming ever more pressing.

The Last Step: Getting Started

No matter what strategy, from offering employees health resources to offering incentives for healthy  behaviors, corporations have a real opportunity to improve morale and productivity, reduce absenteeism  and control health care costs through wellness. The first step is committing to taking one, no matter  what size effort is appropriate for your organization.

Small steps lead to big strides.