Make the case to pay workers for better health
Despite the recession, incentives paid to employees for participation in health and wellness programs show no signs of slowing down. Of 372 small, medium and large companies surveyed by Vienna, VA-based Health2- Resources, 64% said they use incentives for some type of employee health, wellness, or disease management program. An average of $329 is spent per employee annually. Of those who measured their return on investment, 83% said it was better than 1:1.
Premium reductions were the most common incentive, but employers also used gift cards and cash. According to Health2Resources president Katherine Capps, incentive programs are becoming "more sophisticated." "They are not just giving the employee 10 or 15 dollars to lose weight and telling them to come back in six weeks and step on a scale," says Capps. "People are saying, 'We know that incentives can work, but now, let's put a little science behind them.'"
According to Mary Jane Rink, RN, FNP-C, CWWC, assistant vice president of the LiveWELL Carolinas! program at Carolinas HealthCare System in Charlotte, if you want to implement an incentive program and can obtain any information on the health risk stratification of your employee population, "the business case can be more easily made. Better still, compare risk stratification info to benefits utilization. If there is a correlation, such as high levels of stress-related risks along with high pharmacy claims for psychotropic drugs, it becomes much easier to make the case."
Here are key trends identified in the report:
- Varied incentives are used.
"You don't need to use only one approach," says Capps. "Employers are using a combination of different incentives. You may need to experiment with a variety of types of incentives to elicit the best possible response."
- Instead of a single incentive, workers are given incentives on an ongoing basis.
"There is a recognition that you really need to have an evolving program," says Capps. "In other words, incentives work at key points during the program." For example, an employee may get $300 to participate in a health risk assessment. The following year they also have to sign up for a wellness program to get that same incentive, and the third year, the employee's spouse has to also take the health risk assessment to qualify.
- Spouses and family members are being included.
The survey measured the percentage of companies that offer incentives not only to employees, but also their spouses and children. "Employers have always known that spouse and family members impact total health costs. Now some of the early adopters are trying to engage them," says Capps.
This makes sense for two reasons. "First, they have the liability of the spouse and the family member from a business standpoint," says Capps. "Secondly, lifestyle changes are really a family issue. If you want to change an employee's dietary and exercise habits, you need to consider the family."
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For more information on use of employee incentives, contact:
Mary Jane Rink, RN, FNP-C, CWWC, Assistant Vice President, LiveWELL Carolinas!, Carolinas HealthCare System, Charlotte, NC. Phone: (704) 355-8136. E-mail: [email protected]
A PDF of the report, "How Employers Use Incentives to keep Employees Healthy: Perks, Programs and Peers" is available for $125. To obtain a copy of this 2009 survey of small, medium and large U.S. employers, go to www.health2resources.com. Click on "Surveys & Publications." For more information, call (703) 319-0957 or e-mail [email protected].
Despite the recession, incentives paid to employees for participation in health and wellness programs show no signs of slowing down.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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