Incentives Engage Employees, Improve Health and Reduce Costs

A three-year study by Cigna finds that incentives engage workers, improve employee health and make health care more affordable. The study of 200,000 people also provided evidence that individuals with correctable health conditions are more likely to incur high costs. For instance:

• An employee with a body mass index (BMI) over 30 increases total health care costs by an average of $2,460 per year, adding $492 to annual out-of-pocket expenses
• An employee with a cholesterol reading of more than 240 increases total health care costs by $1,644 per year, adding more than $353 in annual out-of-pocket expenses
• An employee with two or more chronic conditions (unhealthy BMI, blood pressure, cholesterol, and/or blood sugar) increases total health care costs by nearly $9,000 per year, adding almost $1,300 in annual out-of-pocket expenses

Researchers also noted that individuals who did not participate in biometric screenings have higher health costs. For example, those who have not had a biometric screening to measure blood pressure incur health costs that are $2,064 higher per year than those who have verified that their blood pressure is below 140/90. The same trend was seen for those who had not had a biometric screening of their blood glucose values -- on average these individuals incur health costs that are $1,332 higher per year than those who have verified that their blood glucose is lower than 100.

The good news is that with better health programs, incentives and guidelines, employee behavior can be modified and produce better clinical outcomes and reductions in overall health care costs. Incentive programs such as consumer premium discounts and health spending account funds can be the impetus for individuals to participate in biometric screenings, engage in healthier behaviors and improve their clinical outcomes and costs.

The Cigna study found that incentives significantly impact wellness program participation and results.

• Incentives more than doubled biometric screening rates from 20 percent to 55 percent in 2014
• Incentives increase the probability of engaging in a coaching program by 24 percent and by 30 percent for populations with chronic conditions
• Incentives significantly increase the probability of setting and meeting goals with a health coach, by 18 percent and 43 percent respectively
• Incentives reduced total medical costs by approximately 10 percent for those over 50 or with chronic conditions
• Incentives increased the probability of meeting biometric targets:
• BMI less than 30 – an improvement of nearly 36 percent
• Total cholesterol less than 240 – an improvement of nearly 11 percent
• Blood pressure less than 140/90 – an improvement of more than 47 percent

The rewards of better health and a reduction in health care costs are real. Wellness Workdays works with a number of employers in a range of industries to offer screening programs, manage chronic conditions and develop incentive plans. Contact us to learn more.

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