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Wellness Programs Becoming More Popular
By Yaffa Klugerman
November 6, 2009
In an effort to control health insurance costs and cut down on employee absenteeism, many companies are offering wellness plans to their employees.
The Wall Street Journal reports that according to Aon Consulting, an employee benefits consulting firm, more than half of employers expect to introduce a wellness program next year or expand existing ones. Additionally, 34 percent plan to introduce or enhance financial incentives for those programs.
Wellness programs make good financial sense for companies. Ron Goetzel, a research professor at Emory University, estimated that for every dollar a company spends on employee wellness, it realizes $1.50 to $2 in savings. "Instituting a workplace wellness program improves the health of employees, decreases absenteeism and saves the company money in the long run," he told the Savannah Morning News.
At Colonial Oil Industries, for example, employees can take advantage of an on-site gym during lunchtime or visit an adjacent health clinic, where they can receive treatment for minor illnesses and get help establishing personal wellness profiles and fitness goals. Employees can even participate in on-site cooking classes to learn how to prepare healthier meals.
"It's really very efficient," said Denise McBroom, a physician's assistant who works at the clinic. "In addition to sick call, we can do blood pressures, lab work, prescriptions and referrals. We practice a lot of preventive medicine that helps employees save time and money."
By joining the wellness plan, Colonial employees can lower their health insurance premiums. More than 80 percent of the company's 300 employees actively participate.
The Journal reports that some companies are offering financial incentives to employees to stay healthy. For example, employees at the Cleveland Clinic can earn $100 for going to the gym 10 times a month for 10 months, or for losing 10 percent of their weight. At Prudential, a financial services company, employees can receive $150 if they complete a health risk assessment. At Paychex, a payroll and human resources provider, employees can earn up to $300 for doing things such as taking fitness classes, getting a flu shot or speaking to a health coach. In addition, Paychex employees who meet certain health requirements receive medical benefits with a lower deductible, co-insurance and out-of-pocket maximum than the more expensive cost-sharing plan.
"This is about driving employee good health," notedd Delia Vetter, senior benefits director at EMC Corp in Massachusetts, who was interviewed by the MetroWest Daily News. Employees at the company can fill out questionnaires about their health, meet with a health consultant, and then pay 12 percent less on their premiums. "We're encouraging them, we're really creating the environment at EMC to foster healthy lifestyles."
Rob Demere, president and CEO at Colonial in Savannah, agrees. "It's good for our employees, good for our company and good for our bottom line," he said.
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