Health Handouts : Are Company Health Promotion Programs Cost-Effective?

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Posted by Health Handouts | Posted in Health Handouts, Health Tips | Posted on 27-07-2009

Studies have repeatedly established that inclusive Employee Health Promotion Programs, or Employee Health Promotion Programs, are able to reduce medical care and insurance costs, lower absenteeism, and better performance and productivity. Other benefits established in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public conception of the organization.

Health Care and Insurance expenses

A number of research studies provide evidence of decreased medical and insurance costs for participants in Workplace Wellness Programs, especially wellness programs involving exercise.

For $30 per person, the Bank of America implemented a Workplace Wellness 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 1-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola published a reduction in healthcare|medical|medical care|healthcare} claims with an physical activity program alone, saving $500 per employee per year for the staff members (60%) who joined their HealthWorks fitness program. Prudential Insurance Corporation reports that the business’s major medical expenditures dropped from $574 to $312 for each attendant in its wellness program.

Decreased Absenteeism

Absenteeism has been established to be impacted by wellness programs. The evidence indicates a significant decrease in absenteeism and resultant dollars saved as a result of employee exercise program.

Pacific Bell’s FitWorks program diminished absent days .8 percent to save $2 million in one year. FitWorks participants also invested 3.3 days less on STD for an additional savings of $4.7 million.

Focusing Employee Wellness Program efforts on elevated-risk staff members is able to lead to better results. A national manufacturing company reports a decrease of 12.2% in illness days for these staff members.

A 2-year study by The DuPont Corporation of the effect of its inclusive Corporate Wellness Program on absences among staff members reports that blue-collar staff members at intervention sites had a 14 percent decline in disability days vs. 5.8 percent decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Worksite Wellness Programs report documented improvement in job attitude, work success, energy level, and/or overall morale among program participants–all critical factors in enhancing work rate.

A Johnson & Johnson study saw that employee attitude changes were greater at Company Wellness Program intervention sites with significant beneficial attitude changes noted in the categories of company responsibility, supervision, working conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Organization experimental group realized a 4 percent increase in productiveness after starting a employer fitness program, compared to the control group. Further, 47 percent of program participants reported that they felt more alert, had better rapport with their co-workers, and generally enjoyed their work more.

Swedish investigators saw that mental success was significantly better in physically fit employees than in non-fit employees. Fit employees committed 27 percent fewer errors on tasks involving concentration and short-term memory, as compared with the success of non-fit employees.

The Bottom Line

The following sample of Corporate Wellness Programs wellness program results have been reported by individual employers:

Business: Dollars Saved/Dollars Spent

• Bank of America (Fries): $5.96/$1
• PacBell: $3.10/$1
• Wisconsin School District Insurance Group: $4.47/$1
• Prudential Insurance: $2.90/$1
• Bank of America (Leigh): $4.73/$1
• General Mills: $3.50/$1

Summary

There is compelling evidence that a large portion of the billions of dollars now being invested by employers on health-related expenditures is preventable by means of Worksite Health Promotion Programs. Well-planned, all-inclusive Worksite Health Promotion Programs (Worksite Health Promotion Programs and Worksite Health Promotion Programs) have been shown to be cost-effective, particularly when the Worksite Health Promotion Programs is matched to the health concerns of the specific employee.

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