Wellness: Can it Solve What Ails Health Care?

by Infinisource

An apparent failing of the Affordable Care Act is its focus on one part of the health care issue (access) while ignoring another part (demand), thereby worsening another part (cost).

Employer-sponsored wellness programs appear to address those other parts. The basic theory is this:

• Most health care claims relate to chronic conditions that are avoidable through proper nutrition, exercise and early prevention
• An employer’s investment in employees’ health addresses those chronic conditions
• Eventually, a wellness program’s benefits (financial and otherwise) far outweighs its cost

Here are some things we are seeing in the wellness space:

• Paying for lack of health. A recent Towers Watson study showed that 19 percent of employers penalize employees on health plan premiums for unhealthy behaviors (e.g., smoking), twice the number of two years ago. HIPAA nondiscrimination rules impose some restrictions on standard-based premium surcharges.
• Putting money where mouth is. An Incentive Research Foundation survey found that offering financial incentives increases participation rates from about 20 to 60 percent.
• Helping employees help themselves. An Aon Hewitt report showed that 60 percent of employees believe their employer is only moderately to not supportive when it comes to getting healthy. They want a customized and convenient improvement plan.

So what does workplace wellness look like? Click Here to read more!

Tip Tuesday! Wellness: Use of incentives (and penalties) climbing - because they work

October 27, 2011 by Christian Schappel

Between 2009 and 2011, the use of financial rewards in health management programs increased by 50%. Meanwhile, the use of penalties increased by more than 100%, according to a new study.

The numbers show employers are starting to quickly warm up to the idea of penalizing workers for not participating in wellness programs — or not meeting certain health goals.

The findings are from The Towers Watson/National Business Group on Health Staying@Work study of 248 U.S. companies. 

A year from now, four in five companies expect to offer some type of financial reward for wellness/health management participation. But more surprising, the use of penalties is expected to double again (this time, in just one year) — with 38% of companies planning to use them in 2012, compared to 19% today.

What isn’t a surprise is why so many employers are using financial incentive/penalties to drive participation: They work!

Check out these stats:

• Among employers offering financial incentives to take health-risk appraisals, employee participation rates are 46% on average — compared to 19% at companies not offering incentives
• Participation in biometric screenings for those giving out cash to take them is 45% — compared to 25% for those keeping their wallets closed, and
• Participation rates are low for all disease management programs designed to deal chronic conditions at 14%, but providing financial incentives provide a slight bump in participation rates to 16%.

For the complete article and links Click Here.