Employee wellness programs are employer-sponsored health programs designed to improve employee health, foster company loyalty and reduce spending for health care benefits. In 2008, national health care costs exceeded $2.3 trillion, or $7,500 per person. Employers now view workers with unhealthy lifestyles as a quality-of-life issue that affects their bottom lines. Employees with risk factors such as obesity, diabetes and substance abuse cost more to insure and are more likely to be injured on the job or get sick and take time off.
Benefits
A well-structured wellness program is a win-win situation for both the employee and employer. From a corporate standpoint, a healthy work force is more likely to maintain high productivity, take fewer sick days off and cost less in health care expenses. Employees who take advantage of employer-sponsored services may experience improved health, reduced stress levels and save money on out-of-pocket medical expenses.
Costs
As of 2010, returns on investment remain anecdotal, although there is evidence to suggest that prescreening diagnostics reduce costs. Steve Burton, vice president of health and wellness services at Quest Diagnostics, says for every dollar invested in the company's Healthy Quest wellness program, the company saves about $4.80.
Types
Discounted gym memberships, stress management help, physical fitness and nutrition classes, and weight loss and smoking cessation programs are examples of employee wellness initiatives. Many programs are offered through employers' health plan, although larger companies may provide exercise equipment and wellness classes on site. Unlike wellness programs that emphasize preventive measures, health coaches devise individual programs to help employees set personal health goals, track progress and remain accountable for achieving success.
Availability
According to a 2008 survey conducted by the Kaiser Foundation, more than 50 percent of companies offer at least one employee wellness program. Firms with 200 or more employees are most likely to provide wellness programs as part of health coverage. More than half of small companies offer at least one wellness program. Some companies may offer reduced health care premiums or cash bonuses to those who meet certain health criteria. A third of companies that offer health risk assessments provide incentives to encourage employee participation.
Considerations
Employees' concerns about privacy may affect enrollment numbers. While some believe family history is an important part of the health profile, others maintain that privacy rules must take precedence because of the potential for abuse of information. Effective in 2009, the Genetic Information Nondiscrimination Act prohibits employers from asking questions about genetics or family medical history if the responses are used to set financial incentives.
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