As reported by Gordian Health Solutions, the effectiveness of health promotion programs in bettering health and decling health care costs is directly linked to incentives –
o The more substantial the incentives,
o The higher the success rate.
Incentives can range from tokens of achievement, such as t-shirts, water bottles and sports equipment, to more substantial financial awards, such as cash incentives or copay vouchers for the successful completion of a wellness 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.
Staff Members 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 personnel who meet wellness goals. LuK, Inc. offers personnel $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, employees are eligible for health assessments, which could lead to reward amounts of up to $225.
The most effective motivator, as reported by Gordian research, comes through linking participation in wellness programs directly to insurance premiums. Doing so obviously demonstrates to staff the positive effects of wellness on their own healthcare costs.
Frequently, the first step in linking wellness programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles altogether. By adding this benefit, organizations can encourage workforce to undertake routine screenings and other procedures to respond to medical problems before they become chronic.
Early detection benefits both patient health and business medical costs.
Incentivizing health promotion program participation with healthcare credits
More frequently, businesss 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 recently rolled out a health promotion program that allows employees to eliminate their portion of the insurance premium by enrolling in a Healthy Options health promotion program.
During the first year of the Healthy Options program, personnel and their spouses complete Personal Health Assessments and health screenings to determine their levels of health risks.
Nurses, dietitians and exercise experts are available to help moderate- and high-risk participants develop 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, personnel earn their full premium credit. Because some plans at Worthington require no staff member contribution, a cash award takes the place of a credit in those cases.
During year two of the health promotion program, the wellness bar is raised slightly. To continue to receive the wellness credit, participants in the moderate- to high-risk category are going to be required to work at setting 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 workforce will be on the wellness track. The organization believes that will mean a healthier workforce and cost savings for workforce and the organization.
The well being of Worthington workforce is the foundation of this wellness program, and both workforce and the organization are expected to benefit from the long-term advantages of the Healthful Choices Wellness Program.
While Worthington has taken a wide approach to wellness, other businesses have found success in offering incentives in specific areas. Longaberger, for instance, offers a discount on healthcare policies for staff who do not use tobacco.
An individual staff member who does not use tobacco saves $7 per bi-weekly pay. for tobacco-free personnel with family coverage whose families are also tobacco-free, the savings increases to $14 per pay.
The next step – Penalizing harmful behaviors
As it stands, health care is the only kind of insurance that doesn’t 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 unhealthful behaviors is a possible next step in employers’ attempts to manage healthcare costs.
Reports that personnel would support this kind of action are stacking up. One Ohio company conducted an informal survey that indicated personnel would consider it a morale improve when health-conscious personnel were relieved of some of the burden of subsidizing care for personnel who engage in behaviors that negatively affect their health.
Whether or not or not this kind of health promotion 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
Whatever the strategy, from offering staff members health resources to providing incentives for healthful behaviors, companys have a real opportunity to improve morale and productivity, reduce absenteeism and control health care costs through wellness.
The first step is committing to taking one, whatever size effort is appropriate for your company. Big strides start with small steps.
