Employers Invest in Wellness Programs to Reduce Health Care Costs

Strategic Insights -

Employers have been investing in various wellness programs to reduce health care costs, which were estimated to average over $7,000 per employee per year. Companies, such as Home Depot and UPS, offer a range of benefits, from free smoking cessation programs and on-site vaccinations to fitness training classes and nutritional counseling. These programs aim to keep employees healthy, thereby reducing health care costs and improving productivity.

Key Takeaways:

  • 94% of companies with wellness programs reported a reduction in medical costs, according to a study by MetLife.
  • The main goal of wellness programs is to have healthier employees, which can lead to lower health care costs overall, according to Stephen Holmes, spokesman for Home Depot.
  • A study by the Society for Human Resource Management found that 72% of employers offered wellness information, 64% provided vaccinations, and 59% had wellness programs in 2009.
  • In a June 2009 employee benefits survey of 522 employers, 5% planned to add a weight loss program, while 4% planned to add a smoking cessation program.
  • Companies are more likely to trim financial and compensation benefits, such as undergraduate educational assistance and incentive bonuses, rather than reduce or eliminate their wellness programs.
  • The number of companies offering wellness benefits has grown since 2005, with 72% of employers offering wellness information in 2009.

Statistics:

  • Estimated health care costs: over $7,000 per employee per year (no specific source provided)
  • Companies with wellness programs: 94% reported a reduction in medical costs (MetLife study)
  • Employers offering wellness information: 72% (Society for Human Resource Management study, 2009)
  • Employers providing vaccinations: 64% (Society for Human Resource Management study, 2009)
  • Employers with wellness programs: 59% (Society for Human Resource Management study, 2009)
  • Employees participating in weight loss programs: 30% (Society for Human Resource Management study, 2009)
  • Employees participating in smoking cessation programs: 39% (Society for Human Resource Management study, 2009)
  • Employees using on-site fitness classes: 12% (Society for Human Resource Management study, 2009)

Sources:

  • MetLife study: no specific source provided
  • Society for Human Resource Management study: "2009 Employee Benefits Survey" (June 2009, no specific page number)
  • "CEOs have a tender ear to this issue now," Renzie Richardson, chief executive of Be Healthy For Life (no specific date or publication)
  • "If they're pennywise and pound foolish, some organizations are cutting back," Christopher Matthews, vice president and senior health consultant for the Segal Co. (no specific date or publication)
  • Home Depot's wellness program offerings: no specific source provided
  • UPS's wellness program offerings: no specific source provided
  • Hartsfield-Jackson International Airport's wellness program: no specific source provided