Ecount News & Press Releases

The Road to Well

Rising health care costs have more companies seeking to create a healthier workforce

August 1, 2006 by A.E. Smith - Potentials

May 7 marked the seventeenth annual National Employee Health & Fitness Day, but if you spent it stationary at your desk, you may ascribe to the philosophy that a healthy lifestyle is some thing to be pursued (or neglected) outside of working hours.

That all may be changing. Faced with sharp increases in health care costs, more companies are taking an active interest in the lifestyle habits of their workers. Approximately one- quarter of the employers surveyed this year by United Benefits Advisors (DBA) currently offer some kind of health risk assessment or wellness program to their employees, and an additional 50 percent of the respondents said they would like to set up such a program.

Many companies are going much farther than setting up a voluntary walking program or adding more granola bars to the vending machines. The new generation of wellness programs go beyond disease management and focus on pre venting disease altogether, by locating workers who are most likely to develop high-cost ailments. Some companies are taking the added step of prohibiting certain unhealthy habits outright; most employees at garden and lawn care company Scott's Miracle-Gro are approaching an October deadline to give up tobacco use or face dismissal.

Bad news if you are a smoker, but good news if you are in the incentive business. Rewards tied to health and wellness programs are one of the fastest growing segments in the industry, and the potential for more growth is great as companies seek tangible results from the pro grams they set up. "There's a lot more awareness now on trying to motivate employees to take all kinds of actions. It's really starting to heat up/' says Matt Gillin, CEO at Ecount, a leading provider of custom prepaid cards. "We've seen 300 percent increase [in wellness- related business] in the past 12 months... think if you touch back with us in another six months, that trend is going to continue, and probably accelerate."

In addition to saving on costs directly related to health care, stud ies have shown that wellness pro grams can lead to lower rates of absenteeism and better workplace safety. But there is a gulf between just setting up a wellness program and creating one that actually makes a difference. "Engagement is low," says Anne Pryor, senior director of product development for Carlson Marketing. She advises companies to take an integrated approach when setting up a pro gram, by starting with a clearly defined strategy and following up with measurement and analysis. By following through, you can take plan from 9 percent to 90 percent participation.

THE KEYS TO SUCCESSFUL PROGRAM

Find a champion Whether it's the CEO or the head of HR, find point person with pull to take a visible lead. "If there is not clear senior management up front, the initiative will not be funded, and it will not get off the ground" warns Pryor.

Make managers account able Once you have buy-in at the top, make sure it trickles down. Set objectives for participation within each division, and reward the managers who get their people involved.

Keep talking Communication is the make or break factor in developing a successful wellness program; many programs start off with a flourish, but languish as employees forget they exist. "Tell them and tell them and tell them again," says Deborah Condon, director of business development and systems integration for HealthPartners, the largest consumer- governed, non-profit health care organization in the country. Ensure all partners involved are speaking on the same page.

Tailor to your workforce Find out what health concerns are tops with your employees; employee makeup will have say in whether they're concerned with prenatal care, hypertension or stress. Demographics will also determine how the program is applied; an online program may be most convenient for white collar workers, while a regular newsletter may find a better response among a manufacturing base.

Involve everyone Rising health care costs affect all employees, so get them all involved in the program. "You need to deal with the entire population, not just the sick people," says Condon. Ensure that everyone, even healthy people, have access to the reward program. The result will be higher participation levels and the formation of good habits.

LEGAL EASE

Critics of the more radical health initiatives on the boards today worry that companies are crossing the line between being proactive and discriminatory. As employers continue to seek greater cost savings by con trolling the lifestyle of their employees, it's only a matter of time before someone lands in court. The best way to ensure your programs don't incur backlash, legal or otherwise, is to keep them voluntary. Those who want to go further, should be aware of the following legal restrictions:

Americans with Disabilities Act (ADA) Passed by Congress in 1990; ADA prohibits discrimination in the workplace against people with disabilities. This protection does not extend to smokers or those who are overweight, but may cover people who qualify as morbidly obese.

Employee Retirement Income Security Act (ERISA) Passed by Congress in 1974; ERISA set standards for benefit and pension plans.

Health Insurance Portability and Accountability Act (HIPAA) Passed by Congress in 1996 as an amendment to ERISA; HIPAA sets up further regulation on health benefit programs regarding exclusions for preexisting conditions and special enrollment rights, and prohibits is crimination against individuals based on their health status. State Laws Although smokers are not protected nationally under ADA, many individual states have passed statutes that prohibit companies from firing or punishing employ ees for off-duty behavior.

CARROTS AND STICKS

When you are considering an award level for a wellness program, "don't make it a token, like, 'we'll have a drawing for a water bottle,'" advises Condon. At the same time, ensure the reward is in the spirit of the activity. Participants in a prenatal care program might appreciate baby care package, while those embarking on a new exercise regime may be more motivated for chance to win a high-end bike.

Gift cards and prepaid cards are common rewards for completing health assessment test. Standard gift values can range from $50 up to $250. Another option is to offer free counseling service in an area where the employee is at risk. These programs can be conducted online, in person, or most commonly over the telephone, and their support help participants stick with their healthy resolutions.

One reward area that is growing

in popularity is to offer employees discount on their health care premiums for taking an assessment or completing a wellness course. This option has the benefit of being relevant, but the downside is that the discount can disappear into a paycheck. "It's not an ongoing, realized incentive," cautions Robert Carpenter, vice president at holistic wellness program HealthyGuidance. "They don't necessarily see that benefit every month."

Some companies have taken the opposite track, tacking on a surcharge to the premium charge of employees who smoke or opt not to take an assessment test, but many analysts feel this policy is not worth the bad will it fosters among employees. Instead, focus on the positive, and reward employees who participate voluntarily.

Don't forget to give frequent (and public) recognition. Sometimes the best way to encourage wider participation is to showcase the success stories of those who have taken advantage of the benefits. "Have people talk about the reductions in blood pressure, the life that was saved, the quality of life that was turned "advises Carpenter "The pocketbook works for a while, but you really have to get to the level of the heart."