Three Factors Determine Wellness Program Success

Worksite wellness programs can reap strong ROI and have positive financial benefits on employers’ health care costs. According to recent research, the economic success of these programs is dependent on three factors:

• Establishing clear goals or expectations for the program over a defined period of time
• The primary focus of the program (disease management vs. lifestyle programs)
• Using best practices to enhance overall program success

Goals
An employers' goals can focus on concrete measures such as reduced health care utilization, which can be measured; or softer measures, such as greater productivity, increased presenteeism or higher morale, which are harder to quantify.

Program Focus
Wellness initiatives generally focus on two areas, as mentioned previously: disease management and lifestyle programs. Both play important roles in employee well-being; however, with regard to ROI, current research from the RAND Corporation suggests that disease management programs have demonstrated significant savings, while lifestyle programs show a lower level of direct return.

Looking at the ratio of reductions in health care costs to program cost, RAND determined that the overall ROI for worksite wellness programs is $1.50, whereas returns for the individual components differ dramatically. The ROI for disease management programs is $3.80 but drops to $0.50 for lifestyle management initiatives.

While RAND researchers do not think lifestyle management programs are worth the investment, other highly regarded professionals such as Leonard Berry, who wrote “What’s the Hard Return on Employee Wellness Programs?” for the Harvard Business Review, disagree. Berry notes: "Although some health risk factors, such as heredity, cannot be modified, focused education and personal discipline can change others, such as smoking, physical inactivity, weight gain, and alcohol use — and, by extension, hypertension, high cholesterol, and even depression. The results are worth the effort." Other researchers have found that the ROI from lifestyle interventions accrues over time and needs to be measured in the long term, noting that employers need to get ahead of illnesses to control and manage employee healthcare costs.

Best Practices
Most researchers agree that ultimately the success of a wellness program lies in adoption of best practices including: the development of a wellness culture supported by all levels of management through visible participation, effective and creative communications with employees that are continually refined and delivered through diverse media, offering a variety of accessible activities and pursuits, and ongoing programmatic assessment with methods for employee input.

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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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Visit Wellness Workdays for more information about our worksite wellness programs.

Tips to Drive Worksite Wellness Engagement

Sometimes employers roll out fabulous worksite wellness programs and then have a difficult time getting employees to participate.  What steps do you need to take to ensure that your program gets high engagement rates? At Wellness Workdays we work with organizations to develop a strategic, branded communications plan for every wellness program. However, this is only one tactic to drive engagement. There are a number of additional strategies that should be employed to increase participation and get workers excited about your program. A recent article in the New York Business Journal highlights additional best practices

Customize the presentation of the wellness program.
Sitting face-to-face with employees is a highly effective way to find out what their concerns are and what they are interested in. Some organizations use videoconferencing and others host brown bag lunch sessions to start discussions about wellness programs.

Meet employees at their starting point.
Employees come in all shapes, sizes and ages. In any one organization, some employees are avid exercisers while others have no interest in exercise.  Some employees are knowledgeable about nutrition while others don’t know what information to look for on food labels. Each individual’s health and wellness needs are different and employers should offer programs that meet varying needs.

Recognize that changing behavior is hard.
Employers should not be discouraged.  It takes a long time to break bad habits. Wellness programs should be viewed as a continuum and not just a once and done situation. Employers should be prepared to continually educate, encourage and bring employees on the journey. About 75% of health care costs are related to lifestyle, including diet, sleep and exercise habits, so it is in an employer’s best interest to be patient and resilient when implementing any workplace wellness plan.

Sell the wellness program to senior level executives with solid data.
Numbers have a profound effect on CEOs and top management. For example, a highly-engaged workforce in a wellness program can lower workers’ compensation costs by 39 percent. Once the health, productivity and financial connection is made, many senior executives will support the implementation of a worksite wellness plan and will be avid participants, helping to drive engagement.

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Visit Wellness Workdays for more information about our worksite wellness programs.