The Case for Wellness Programs.

Wellness program means different things to different companies. Effective wellness programs could be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better eating. They could be as extensive as building fitness facilities onsite or compensating for obesity treatments.

A driving factor behind the push toward wellness spans companies of all kinds, sizes and cultures –  that is, healthcare expenses are spilling over the corporate belt buckle.

The annual cost of medical services in the U.S. 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 difficult for companys to maintain current levels of insurance coverage. In 2003, health care inflation forced 65% of companies to raise employees’ share of health care costs.

Seventy-nine percent of large firms said they’ll increase workers’ share of health care costs in 2004.2 But with lost benefits and increased financial burdens come lost morale and productivity.

Corporations are searching for another way. While organizations can’t control many of the supply-side elements contributing to rising health care costs?.”malpractice insurance rates, the nursing shortage?.”they can help curb demand. That’s why efforts are being redirected from illness to wellness.

The case for wellness is supported by an ever growing body of evidence demonstrating the high costs associated with controllable health risks -

o  One study reports that obesity raises health care costs by 36% and medication costs by 77%.

o  Michigan officials estimate physical inactivity cost the state nearly $8.9 billion in 2002, a cost estimated to be largely borne by companys through insurance premiums and lost productivity.

o  The not-for-profit National Committee for Quality Assurance reports that the estimated typical cost for postnatal care for women who did not receive prenatal care was $2,341 more than for women who had.  And the indirect costs of unhealthy behavior could 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. Moreover, healthier employees use fewer medical services.

The five leading causes of death in the United States ?.” heart disease, cancer, stroke, chronic obstructive pulmonary disease and diabetes ?.”  are directly linked to unhealthy lifestyles. Obviously, encouraging healthy habits presents an opportunity to improve employees’ well being, reduce the need for health care services and help control costs.

Offering employee health promotion benefits ?.” large or small ?.” represents an intersection between corporate social responsibility and responsibility to stakeholders. Between employee health and corporate health. It is often the right thing to do for staff and corporations.

Research by Traveler’s Corp. shows a $3.40 return for every dollar invested in Health Promotion Programs. for many corporations, the choice to offer worker wellness benefits is easy?.”one where conscience and pragmatism align.

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

From large companies to the corner deli, organization owners welcome ways to boost productivity, decrease rates of absenteeism and cut costs. In like manner, health promotion programs can range from modest to elaborate.

In deciding where to focus a company’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 workforce and corporations.