Are Worksite Health Promotion Programs Cost-Effective?

Studies have repeatedly demonstrated that comprehensive worksite health promotion programs, or Corporate Wellness Programs, can lower health care and insurance costs, decrease absenteeism, and improve performance and productivity. Of 24 studies published in peer-reviewed journals from 1991-1993, "all but one evidenced positive health outcomes. Of the studies which analyzed cost-effectiveness or cost benefits, every one indicated a positive return."

A 1996 review of 10 major studies reports cost/benefit ratios ranging from 1:2.05 to 1:5.96 with two very high return studies reporting ratios of 1:10.1 and 1:19.4. Other benefits demonstrated in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public image of the company.

Health Care and Insurance Costs
A number of studies provide evidence of lower medical and insurance costs for participants in health promotion programs, particularly wellness programs involving exercise.

• For $30 per person, the Bank of America conducted a health promotion program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were reduced an average of $164 per year in this group while they increased $15 for the control group. Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years.
• Pacific Bell’s FitWorks participants claim $300 less per case for a one year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.
• Coca Cola reported a reduction in health care claims with an exercise program alone, saving $500 per employee per year for the employees (60%) who joined their HealthWorks fitness program.
• Prudential Insurance Company reports that the company's major medical costs dropped from $574 to $312 for each participant in its wellness program.

Decreased Absenteeism
Absenteeism has been shown to be impacted by employer health promotion and wellness programs. The evidence indicates a significant reduction in absenteeism and resultant dollars saved as a result of employee fitness programs.

• Pacific Bell’s FitWorks program decreased absent days .8 percent to save $2 million in one year.  FitWorks members also spent 3.3 days less on short term disability for an additional savings of $4.7 million.
• Focusing health promotion efforts on high risk employees can lead to better results. A national manufacturing company reports a decrease of 12.2% in illness days for these employees.
• A 2 year study by The DuPont Corporation of the effect of its comprehensive health promotion program on absences among workers reports that blue collar employees at intervention sites had a 14% decline in disability days vs. 5.8% decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale
A number of employers with health promotion programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants--all critical factors in enhancing productivity.

• A Johnson & Johnson study found that employee attitude changes were greater at health promotion intervention sites with significant positive attitude changes noted in the categories of organizational commitment, supervision, working conditions, job competence/security, and pay/benefits.
• In a Canadian government study, the Canada Life Assurance Company experimental group realized a 4% increase in productivity after starting an employee fitness program, compared to the control group. Further, 47% of program participants reported that they felt more alert, had better rapport with their coworkers, and generally enjoyed their work more.
• Swedish investigators found that mental performance was significantly better in physically fit workers than in non-fit workers. Fit workers committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the performance of non-fit workers.

The Bottom Line
The following sample of worksite health promotion wellness program results have been reported by individual employers:

Summary
There is compelling evidence that a sizable portion of the billions of dollars currently spent by employers on health-related costs, is preventable by means of health promotion programming. Well planned, comprehensive health promotion programs (corporate wellness programs and employee wellness programs) have been shown to be cost-effective, especially when the health promotion programming is matched to the health problems of the specific employee population.

Today’s challenge…
The key to reducing healthcare costs is prevention.  Years ago, the major health concerns were infectious diseases such as tuberculosis.  But today our leading causes of death—heart disease, cancer, and stroke—are due in large part to our own unhealthy lifestyles.

The Health Risk Assessment
The individual risk assessment is a guide to identify those behaviors that put one at risk for accidents or illness that, if modified, can increase the probability for a longer and healthier life.  It provides measurable, actionable information based on medically valid precursors—weight, tobacco use, or diet for example—and statistically valid scoring algorithms.

How does it work?
The health risk assessment is designed to improve health through individual assessments, and disease-specific intervention and management.   Individuals use a number 2 pencil to answer questions about their health and lifestyle habits and receive a 14-page report with information about health risks, healthy and unhealthy habits, and risk reduction strategies.  Each card is numbered and the reports are generated by card number for strict confidentiality.

Health Coach
Health coaches provide high quality personalized health and wellness coaching on a variety of issues, including weight management, smoking cessation, stress management, and chronic conditions (i.e., asthma, back pain, and diabetes). In addition, coaches may refer participants to a wide variety of carefully screened health and wellness resources, including acupuncturists, chiropractors, massage therapists, dieticians, personal trainers, yoga instructors, health clubs, and spas.

The key to reducing healthcare costs is prevention
Employers receive Aggregate Summary and Executive Summary Reports

The Executive Summary report offers an overall snapshot of the entire assessed population. It also provides first steps necessary in identifying risks for potential increased health care costs. The Aggregate report offers the overall raw numbers and corresponding percentages from an entire assessed population. This information can then be interpreted by a trained individual to identify potential overall risk factors and in-turn provides appropriate consultation to address those risks.

If you would like more information on this confidential risk assessment, call Jeannie @ 800-908-0000 ext. 203. 

This health risk assessment is not intended to diagnose any diseases, illnesses, or health conditions.

Sample Report