These days, "wellness" is a hot topic, both at home and in the workplace. Generally speaking, wellness refers to a person living life in the healthiest way possible. Exercise, healthy eating, quitting smoking and more are all things that can lead to wellness. Lowering stress can also lead to wellness.
For employers, wellness is a very important thing. When workers are healthy and happy, they take less sick days and can do more work in less time. Many workplaces across the country have already begun to offer "wellness incentive programs" to their employees. These are programs which reward workers for taking steps to live healthier lives.
With the passing of the Affordable Care Act into law, the U.S. government became more involved in the health of citizens. This Act, which covers many health-related issues, puts more attention on workplace wellness.
One recent action paid for by the Affordable Care Act is a $9 million study. This study will test how well workplace wellness programs are working.
Making wellness programs better can be good for everyone.
UPI.com reports this study "aims to help workplaces support healthy lifestyles and reduce risk factors." The study results should "help improve the health of workers and their families."
Such programs can not only lead to better lives for workers, they can also help workplaces become more successful. Thomas R. Frieden, director of the Centers for Disease Control and Prevention, agrees. As reported on UPI.com, he points out that wellness programs can end up saving businesses more than they cost. In some cases, for every $1 spent, a business can get a $3 or higher return.
Dr. Frieden says: "This new initiative will help companies of all sizes [use wellness programs that help] to improve employee health."
The Affordable Care Act study is being performed by Viridian Health Management in Phoenix. It will work with 70 to 100 small, mid-size and large businesses across the nation. The study's goal is to help the businesses begin to use or improve wellness programs.
What else the U.S. government is doing for wellness.
As posted by Littler Mendelson on May 14, 2010, the Healthcare Reform Act has a number of items that support workplace wellness programs:
- In 2011, businesses with fewer than 100 workers who work 25 hours or more a week will be eligible for grants. These grants give the business money to help begin a new wellness program.
- Businesses will be able to allow 30 percent lower costs for single or family healthcare. That could go up to 50 percent if the Secretaries of Health and Human Services, Labor and Treasury allow it. This is for plan years starting on or after Jan. 1, 2014.
- Businesses can get technical and other kinds of help to decide which plan to use and to get it off the ground.
It seems to be working.
Measuring the impact of wellness programs takes a lot of time. The Affordable Care Act study results will not be complete for some time. But we can look to some examples of businesses that have found success with wellness programs over the long term.
As reported in the Harvard Business Journal, "Since 1995, the percentage of Johnson & Johnson employees who smoke has dropped by more than two-thirds. The number who have high blood pressure or who are…inactive also has declined—by more than half." But what does all that mean to the business? The Journal reports Johnson & Johnson says that their company saved around $250 million in healthcare costs from 2002-2008.
The website, PreventDisease.com, has compiled many more examples. These examples have been edited for length and clarity.
At Mesa Petroleum, workers who took part in a wellness program missed 1.6 fewer days per year than those who did not take part. Since the business had a large number of workers, it ended up saving a lot of money. - The Benfield Group, St. Louis, Missouri, February 1996
Coors has saved more than $2.3 million in lost pay due to missing work and $1.9 million in rehabilitation costs and cost avoidance. - Business and Health, November 1992
Waste Management, Inc., began a stress management program for employees and their families. It helped the business save $3,750 to $15,000 per participant, per year. - Business and Health, November 1992
At the Westinghouse Electronic Assembly Plant, workers who took part in the workplace fitness program cost the business around $1,715 less than workers who did not take part. - Benefits Today, August 1992
A good start.
The cases mentioned above are just a few examples of long-term successes. There are many more businesses across the country using wellness plans. Some have been successful. Some have not. Much more testing is needed before strong conclusions can be made. And even then, workplace wellness success will be different for every business.
The Affordable Care Act study should offer important information. But it is only the beginning.
