According to Gordian Health Solutions, the effectiveness of 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 among the corporation’s onsite nurses. to encourage lunchtime walking, the worker has informally launched a “shoelace program” modeled after the karate-belt color system.
Workers 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 companies pay cash to workers who meet wellness goals. LuK, Inc. offers workers $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 may lead to reward amounts of up to $225.
The most effective motivator, according to Gordian research, comes through linking participation in wellness programs directly to insurance premiums. Doing so clearly demonstrates to employees the positive effects of wellness on their own healthcare 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, companies can encourage employees to undertake routine screenings and other procedures to respond to medical problems before they become chronic.
Early detection benefits both patient health and employer health care costs.
Incentivizing wellness program participation with healthcare credits
More frequently, employers are going beyond increased 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 workers to eliminate their portion of the insurance premium by enrolling in a Healthy Choices wellness program.
During the first year of the Healthy Options program, employees and their spouses complete Personal Health Assessments and health screenings to determine their levels of health risks.
Nurses, dietitians and exercise experts 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 programs.
By completing the assessments, employees earn their full premium credit. Because some plans at Worthington require no staff member 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 required to work at setting goals with third-party health coordinators.
Year three raises the bar again, requiring participants to show progress in meeting objectives and to continue to work with health coordinators to reach objectives.
After year three, Worthington Industries staff members will be on the wellness track. the company believes that will mean a healthier workforce and cost savings for staff members and the company.
The well being of Worthington employees is the foundation of this program, and both employees and the business are expected to benefit from the long-term benefits of the Healthy Choices Wellness Program.
While Worthington has taken a wide approach to wellness, other businesses have found success in offering incentives in specific areas. Longaberger, for example, offers a discount on healthcare policies for workers who do not use tobacco.
An individual worker who doesn’t use tobacco saves $7 per bi-weekly pay. for smoke-free workers with family coverage whose families are also smoke-free, the savings increases to $14 per pay.
The next step – Penalizing harmful behaviors
As it stands, health care is the only kind of insurance that does not focus on penalizing for behaviors that put the insured party at risk. With health care costs rising so dramatically, that could soon change.
Just as an accident likely raises auto insurance premiums, increasing premiums for those who engage in unhealthful behaviors is a possible next step in corporations’ attempts to manage healthcare costs.
Reports that staff members would support this kind of action are stacking up. One Ohio business conducted an informal survey that indicated staff members would consider it a morale boost if health-conscious staff members were relieved of some of the burden of subsidizing care for staff members who engage in behaviors that adversely affect their health.
Whether or not this kind of program gains popularity, one thing is sure – the need to control the rise in health care costs is becoming ever more pressing.
Take the first step
Whatever the strategy, from offering staff members medical resources to providing incentives for healthy behaviors, employers have a real opportunity to improve morale and productivity, reduce rates of absenteeism and control healthcare costs through wellness.
The first step is committing to taking one, no matter what size effort is appropriate for your organization. Big strides start with small steps.