Wellness programs are worth every dollar you spend

Health-care costs aren't the only reason to have wellness programs. However, many companies dropped wellness programs in recent years as they turn to managed care health insurance plans.

This is short-sighted because managing health-care costs is one of four reasons wellness programs make economic sense. In addition to reducing demand for medical services, wellness programs provide economic benefit by reducing absenteeism, reducing on-the-job injuries and workers' compensation costs, and reducing disability-management costs.

Studies show employee absenteeism is reduced when wellness programs are implemented. In a study at Prudential Insurance, disability days were 20 percent lower and disability-per-capita costs were 32 percent lower after implementing a wellness program. In addition, annual medical costs fell by 46 percent.

According to a study of a wellness program at Providence General Medical Center, per-capita workers' comp costs were reduced 83 percent and other savings were realized in reduced sick leave and health-care costs, thanks to implementation of a wellness program.

These studies document tangible economic benefit from wellness programs. Intangible benefits may be even more important to an organization's overall health: Increased productivity is one of the most important benefits of operating a business with fit, healthy employees.

Wellness programs also help to recruit and retain the most effective, productive employees. Studies show a correlation between employees who seek out corporate wellness programs and the most productive workers. Morale is another benefit of a wellness program. These programs are inexpensive ways to show employees the organization is interested in them as total persons.

At a time of reduced job security, wellness programs provide a spark of good will and foster the all-important message of self-responsibility.

Businesses contract with managed care firms to control health-care costs. The employer, however, takes a passive role by shifting the risk of controlling costs to the HMO or insurance company. In the long run, costs will be shifted back to consumers and the employer through increasing premiums and costs, or decreased services.

In recent years, competition is responsible mainly for keeping health-care inflation under control but resulting shakeouts and mergers will cause prices for medical services to rise again.

Corporations that once jettisoned wellness programs may find their employee base is less healthy.

This column first appeared in the Denver Business Journal. Miriam Sims is a consultant with Denver-based Health Promotion Management Inc.