Employers See Well-Designed Worksite Health and Wellness Programs as Strong Value...

Employers See Well-Designed Worksite Health and Wellness Programs as Strong
Value in Down Economy

Study shows increase in incentives to keep employees healthy, from average of
$204 in 2008 to $329 in 2009

WASHINGTON, July 28 /PRNewswire-USNewswire/ -- As politicians and policymakers
debate how to structure and pay for clinical prevention and chronic disease
services within new models of care--both at the work site or through new
delivery systems--many are looking to mature employer-based health management
programs as models. A new, in-depth survey of employers into the use of
incentives in corporate wellness programs shows that smart investments in
employee health programs are yielding results.

Despite tight economic times, paying employees to participate in worksite
health and wellness programs is almost uniformly believed among employers of
all sizes, with and without programs in place, to boost program success and
return value. Almost two out of three U.S. companies offer programs to keep
employees healthy, and 66 percent of those offering programs also use
incentives, with a healthy number showing an ROI of greater than $1 for each
dollar spent.

The findings are part of a survey, now in its third year, of the use of
incentives. The survey tracks how much employers pay in incentives, what
activities they incentivize, and how success and return on investment is
measured. The report, "How employers use incentives to keep employees healthy:
Perks, programs and peers," was released today by Health2 Resources.

This is the first year that many small-to-midsize companies were included in
the survey, revealing the extent of expansion of these programs beyond large
companies. The survey explored several new trends, such as the role of primary
care in prevention and health management programs and extension of programs to
spouses and children.

"During tough economic times, employees who take control of their health and
are more engaged and active in their own health are valuable assets," said
Katherine H. Capps, president of Health2 Resources. "We are not talking about
$5 here or there. We are talking about serious investment into productivity,
made by employers with as few as 200 employees, for as much as $1,400 a year
per employee. Employers are taking control of health care costs by creating
smart, effective new strategies to keep employees healthy, and to keep
employees at work."

Among the key findings:

* Perks matter. The value of incentives is up, averaging $329 in 2009 and
ranging from $1 per pound for weight loss to annual premium reductions valued
at more than $1,500. The most commonly used incentive is premium reductions,
followed by merchandise/tokens and gift cards.

* Employers offer cash, gift cards to spouses and family to keep them healthy.
More than half of the companies surveyed offer health and wellness or disease
management programs to spouses and a third extend the programs to other family
members.

* Confidential health history/questionnaire is an important starting point for
worksite wellness and disease management. Two out of three employers--large,
mid- size and small--offer a health risk assessment to employees, and nearly
three out of four of those offer incentives to take it. Incentives to take the
questionnaire range up to $300 annually, with about 10 to 15 percent exceeding
$300.

* Smoking cessation programs are the most popular health and wellness program
offered. More than half of employers surveyed (53 percent) offer smoking
cessation to employees, but weight management and physical activity programs
are not far behind.

* Diabetes programs are the most popular disease management program offered.
Among those employers that offer disease management programs, 92 percent offer
diabetes programs, making them the most common disease management program
offered in 2009.

* Company size matters, but doesn't dictate value of incentives. Among large
employers, a bigger percentage offers programs and incentives when compared to
small and mid-sized companies. But some organizations with as few as 210
employees are offering incentives valued at $1,450 per year to keep employees
healthy, well above the average.

* Results count, and employers are counting. The percentage of companies
successfully measuring return on investment for health and wellness programs
has sharply increased over the years, from 14 percent in 2007 to 73 percent in
2009. Some 83 percent of those who have measured say the programs return
better than 1:1 on their investment. In growing numbers, employers are
rewarding goal achievement during and after health and wellness program
completion.

* Employers face challenges to program success, but challenges wane. Among
both employers with programs and those without, nearly every challenge- even
the top challenge of motivating employees over time--has lost intensity.

"Employers are becoming more sophisticated about measuring the return on
investment from wellness and disease management programs, and today's economic
outlook dictates that these programs bring a positive ROI," said Sean
Sullivan, president and CEO of the Institute for Health and Productivity
Management. "No other kind of health management program has been given the
same scrutiny as health and productivity management in measuring its
effectiveness in reducing total health-related costs, including sick days,
disability claims and impaired performance at work. Employees are too valuable
a human capital investment for companies to take their health and productivity
for granted."

Five company case examples included in the report demonstrate the evolving
nature of health and wellness and disease management programs, and how
employers are working to match the specific health improvement needs of their
organizations to the programs that are most effective.

The web-based survey of 372 small, medium and large U.S. companies employing
1.8 million employees was conducted to determine the prevalence of
employer-based programs to keep employees healthy and the use of incentives
within those programs as a tool to encourage participation, engagement and
program completion. Digging deeper to explore the nuances of the use of
incentives, the survey assessed the types of incentives used with these
programs, what programs were incentivized, how much employers pay for
incentives and the employee activities and/or behaviors that are rewarded. The
survey also sought to understand employer expectations for program outcomes
and ROI, as well as challenges employers faced in implementing and operating
these programs.

To order the report go to:
https://ww03.elbowspace.com/servlets/cfd?xr4=&formts=2009-07-24%2007:16:54.698336

To register for the August 11 Webinar offering an overview of the results go
to:
http://archive.constantcontact.com/fs067/1101292888704/archive/1102629101804.html

About Health2 Resources
Health2 Resources, in business since 1998, is a health care and e-health
specialty public relations and communications firm providing market trend
research and analysis that leads to results-oriented marketing communications
and public relations programs for a broad mix of clients--those who purchase,
pay for and provide health care. For more information go to
www.health2resources.com.

SOURCE Health2 Resources

Karla Hurter of Health2 Resources, +1-703-319-0957, or
khurter@health2resources.com