Posted by Corporate Wellness | Posted in Corporate Wellness, Wellness Programs | Posted on 24-01-2011
As reported by Gordian Health Solutions, the effectiveness of health promotion programs in improving health and reducing healthcare costs is directly linked to incentives -
o The more substantial the incentives,
o 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 wellness program.
Nationwide Insurance is seeing results from a small incentive program initiated by one of the company’s on-site nurses. To encourage lunchtime walking, the staff member has informally launched a “shoelace program” modeled after the karate-belt color system.
Employees progress through the color scale until they reach “black-lace” status. The reward system has resulted in more staff making commitments to walk during their lunch hour.
At the high end of the reward spectrum, some corporations pay cash to workforce who meet wellness objectives. LuK, Inc. offers workforce $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, workforce are eligible for health assessments, which can result in reward amounts of up to $225.
The most effective motivator, as reported by Gordian research, comes through linking participation in health promotion programs directly to insurance premiums. Doing so obviously demonstrates to employees the positive effects of wellness on their own health care costs.
Typically, the first step in linking health promotion programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles altogether. By adding this benefit, organizations can encourage staff members to undertake routine screenings and other procedures to respond to health problems before they become chronic.
Early detection benefits both patient health and employer health costs.
Incentivizing health promotion program participation with healthcare credits
More frequently, corporations 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 wellness program that permits staff to eliminate their portion of the insurance premium by enrolling in a Healthy Options wellness program.
During the first year of the Healthful Choices program, workforce and their spouses complete Personal Health Assessments and biometric testings to determine their levels of health risks.
Nurses, dietitians and exercise specialists 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, personnel earn their full premium credit. Because some plans at Worthington require no worker contribution, a cash award takes the place of a credit in those cases.
During year two of the wellness program, the wellness bar is raised slightly. To continue to receive the wellness credit, participants in the moderate- to high-risk category are going to be required to work at establishing goals with third-party health coordinators.
Year three raises the bar again, requiring participants to show progress in meeting goals and to continue to work with health coordinators to reach goals.
After year three, Worthington Industries workforce are going to be on the wellness track. The company believes that’ll mean a healthier workforce and cost savings for workforce and the company.
The well being of Worthington workforce is the foundation of this health promotion program, and both workforce and the company are expected to benefit from the long-term benefits of the Healthful Options Health Promotion Program.
While Worthington has taken a wide approach to wellness, other corporations have found success in offering incentives in specific areas. Longaberger, for example, offers a discount on health care policies for personnel who don’t use tobacco.
An individual employee who does not use tobacco saves $7 per bi-weekly pay. for tobacco-free workers with family coverage whose families are also tobacco-free, the savings increases to $14 per pay.
The next step – Penalizing harmful behaviors
As it stands, healthcare is the only type of insurance that doesn’t focus on penalizing for behaviors that put the insured party at risk. With healthcare costs rising so dramatically, that could soon change.
Just as an accident likely raises auto insurance premiums, increasing premiums for those who engage in unhealthy behaviors is a possible next step in employers’ attempts to manage health care costs.
Reports that staff would support this kind of action are stacking up. One Ohio corporation conducted an informal survey that indicated staff would consider it a morale boost if health-conscious staff were relieved of some burden of subsidizing care for staff who engage in behaviors that adversely affect their health.
Whether or not or not this type of wellness 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 workforce medical resources to providing incentives for healthy behaviors, companys have a real opportunity to improve morale and productivity, reduce rates of absenteeism and control health care costs through wellness.
The first step is committing to taking one, no matter what size effort is appropriate for your company. Big strides begin with small steps.
