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Does Wellness Work?....The Bottom Line
Today, 4 out of 5 American businesses with 50 or more employees
have some form of a health promotion program.
 
What do they know that you don't?
  • Work site health promotion is the long-term answer for keeping employees well
  • Prevention helps avoid the high costs associated with workers compensation, health care, absenteeism and reductions in productivity 
  • Most employers offer wellness programs because they think the benefits are worth the costs
  • While cost sharing, managed care plans, risk rating, cash-based rebates or incentives can help shift health care costs, only having healthier employees actually prevents costs 
  • Work site wellness is health care reform that works!
 
Results from some of America's finest companies show that investing in your most important asset - your employees - has an impact on your bottom line.
 
  • Each dollar invested in workplace health promotion yielded $1.42 over two years in lower absenteeism costs at Du Pont Co. Absences from illness unrelated to the job among 45,000 blue-collar workers dropped 14% at 41 industrial sites where the health promotion program was offered, compared with a 5.8% decline at 19 sites where it was not.
  • The Travelers Corporation claims a $3.40 return for every dollar invested in health promotion, yielding total corporate savings of $146 million in benefits costs. Sick leave was reduced 19% during the four-year study.
  • The Stay Alive & Well program at Reynolds Electrical & Engineering Company cost $76.24 per employee. Over half of the 1,600 employees participated; participants significantly lowered cholesterol levels, blood pressure, and weight and experienced 21% lower lifestyle-related claim costs than non-participants. Resulting savings: $127.89 per participant with a benefit to cost ratio of 1.68 to 1.
  • Superior Coffee and Foods attributes impressive results to the success of the company’s wellness program. Superior showed 22% fewer admissions to a hospital, 29% shorter hospital stays, and 42% lower expenses per admission when comparing costs for this division’s 1,200 employees with costs for other divisions. Long-term disability costs were down by 40%.
  • Average medical costs of high-risk Steelcase employees - those whose lifestyles include two to four health risks such as smoking, little exercise, overweight - are 75% higher than those of low-risk employees. But high-risk employees who improved their health habits through the company’s health promotion program and became low risk cut their average medical claims in half thus lowering their medical insurance costs by an average of $618 per year.
  • With lower health care claims, medical costs decreased 16% for employees in the City of Mesa (Arizona) who participated in the comprehensive health promotion program. The city realized a return of $3.60 for every dollar invested in the health of city employees.
  • To prevent back injuries among its employees, a county in California targeted white- and blue-collar workers, offered classes and fitness training. As a result, there was a significant increase in employee morale, reduced worker’s comp claims, medical costs and sick days related to back injuries producing a net cost-benefit ratio of 1 to 1.79.

Source: Wellness Counsels of America, 1999.


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