As reported by Gordian Health Solutions, the effectiveness of health promotion programs in bettering health and lowering health care costs is directly linked to incentives –
• The more substantial the incentives,
• The higher the success rate.
Incentives can range from tokens of achievement, like t-shirts, water bottles and sports equipment, to more substantial financial awards, like cash incentives or copay vouchers for the successful completion of a health promotion program.
Nationwide Insurance is seeing results from a small incentive program initiated by among the organization’s on-site nurses. To encourage lunchtime walking, the worker 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 staff who meet wellness goals. LuK, Inc. offers staff $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 could 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 clearly 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 workers to undertake routine screenings and other procedures to respond to medical problems before they become chronic.
Early detection benefits both patient health and employer medical 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 lately rolled out a health promotion program that permits workers to eliminate their portion of the insurance premium by enrolling in a Healthy Choices health promotion program.
During the first year of the Healthy Options program, staff members and their spouses complete Personal Health Assessments and medical screenings to determine their levels of health risks.
Nurses, dietitians and exercise specialists are available to help moderate- and high-risk participants create 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, staff 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 will be required to work at establishing objectives with third-party health coordinators.
Year three raises the bar again, requiring participants to show progress in meeting objectives and to continue to work with health coordinators to reach objectives.
After year three, Worthington Industries staff members will be on the wellness track. The organization believes that will mean a healthier workforce and cost savings for staff members and the organization.
The well being of Worthington staff members is the foundation of this wellness program, and both staff members and the corporation are expected to benefit from the long-term benefits of the Healthy Choices 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 instance, offers a discount on healthcare policies for personnel who do not use tobacco.
A personal employee who doesn’t use tobacco saves $7 per bi-weekly pay. for smoke-free personnel with family coverage whose families are also smoke-free, the savings increases to $14 per pay.
The next step – Penalizing harmful behaviors
As it stands, health care is the only type of insurance that does not focus on penalizing for behaviors that put the insured party at risk. With health care 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 healthcare costs.
Reports that workforce would support this type of action are stacking up. One Ohio employer conducted an informal survey that indicated workforce would consider it a morale increase if health-conscious workforce were relieved of some of the burden of subsidizing care for workforce who engage in behaviors that adversely affect their health.
Whether or not this type of wellness program gains popularity, one thing is sure – the need to control the rise in healthcare costs is becoming ever more pressing.
Take the first step
No matter what the strategy, from offering workers medical resources to providing incentives for healthful behaviors, employers have a real opportunity to improve morale and productivity, lower 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 corporation. Big strides begin with small steps.
