One-third of employers reported having wellness programs in an August 2009 MetLife survey. Wellness programs benefit employers who pay for employees' health care costs because they tend to reduce insurance claims. Wellness programs also increase productivity and reduce disability leave. However, these programs do have disadvantages as well.
Upfront Cost
While wellness programs save money for employers in the long term, they have substantial upfront costs. Companies typically don't realize benefits until about three years into the program. Educational materials come with a cost. Weight-loss support groups, fitness classes, smoking cessation programs and personal counseling sessions require paid staff members to facilitate them. You will need to pay staff to develop programs, or hire an outside firm. Evaluating the effectiveness of your program may also require outside support. Monetary costs for a company will vary widely. The Wellness Council of America estimates the cost per employee to be between $100 and $150 per year for an effective wellness program that produces a return on investment of $300 to $450.
Time
Larger companies may spend 20 hours per week for three to six months preparing all the steps prior to launching a wellness program. Some companies skip the planning process because of pressure to begin a wellness initiative quickly, but planning is essential because it forces you to address small details in advance. Involving employees in the planning process creates support for the program because everyone is clear on how the program will work and what is expected of them. An effective plan created with the help of employees can also serve as a contract, getting everyone in your organization behind you.
Privacy
Wellness programs may be subject to a wide range of federal, state and local laws and in some cases, employers have even faced litigation. The case Huffman v. Smithkline Beecham Clinical Laboratories Inc., 111 F. Supp. 2d 921 (N.D. Oh. 2000) concerned a Whirlpool employee who had underwent a blood test as part of a Whirlpool wellness program. The results indicated an abnormally low hemoglobin level, but the employee took no action. Nine months later, the employee died of colon cancer. The employee's wife sued Whirlpool for negligence and won her case because the court considered Whirlpool to be a personal medical provider.
Employers should also be wary of privacy issues. Some employees protest the idea of their employers keeping tabs on their health if it doesn't affect their productivity and may turn to litigation if they perceive discrimination. Companies may ease these concerns by making program participation voluntary and relying on third-party providers to collect private health information.
Recommendations
To make sure your wellness program is cost-efficient, offer every employee a participation incentive, such as monetary rewards, reduced health insurance premiums, trips and reduced gym membership fees. Interventions should be ongoing so that employees have the option of continuous participation. Spend adequate time planning. Carve out a few hours a day for at least two months for creating your plan. Follow the applicable HIPAA regulations, including the Nondiscrimination Rule and privacy and security requirements.
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