Workplace Wellness : Health Promotion Incentives.

As reported by Gordian Health Solutions, the effectiveness of health promotion programs in bettering health and reducing health care costs is directly linked to incentives -  

• The more substantial the incentives,
• 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 company’s on-site nurses.  To encourage lunchtime walking, the staff member has informally launched a “shoelace program” modeled after the karate-belt color system.

Employees progress through the color scale until they reach “black-lace” status.  The reward system has resulted in more workforce making commitments to walk during their lunch hour.

At the high end of the reward spectrum, some companies pay cash to employees who meet wellness objectives. LuK, Inc. offers employees $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 may result in 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 clearly demonstrates to workers the positive effects of wellness on their own health care costs.

Frequently, the first step in linking health promotion programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles altogether. By adding this benefit, companies can encourage employees to undertake routine screenings and other procedures to respond to medical problems before they become chronic.

Early detection benefits both patient health and employer health care costs.

Incentivizing health promotion program participation with health care 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 lately rolled out a health promotion program that authorizes staff members to eliminate their portion of the insurance premium by enrolling in a Healthy Choices health promotion program.

During the first year of the Healthy Options program, staff and their spouses complete Personal Health Assessments and biometric testings 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, workforce earn their full premium credit. Because some plans at Worthington require no worker 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 establishing goals 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 employees are going to be on the wellness track.  The organization believes that will mean a healthier workforce and cost savings for employees and the organization.

The well being of Worthington staff members is the foundation of this health promotion program, and both staff members and the corporation are expected to benefit from the long-term benefits of the Healthy Options Wellness Program.

While Worthington has taken a wide approach to wellness, other organizations have found success in offering incentives in specific areas. Longaberger, for instance, offers a discount on health care policies for workforce who don’t use tobacco.

A personal staff member who doesn’t use tobacco saves $7 per bi-weekly pay. for smoke-free staff with family coverage whose families are also smoke-free, the savings increases to $14 per pay.

The next step -  Penalizing harmful behaviors

As it stands, healthcare is the only kind of insurance that doesn’t focus on penalizing for behaviors that put the insured party at risk. With healthcare costs rising so dramatically, that could soon change.

Just as an accident likely raises auto insurance premiums, increasing premiums for those who engage in unhealthy behaviors is a possible next step in businesss’ attempts to manage health care costs.

Reports that staff members would support this type of action are stacking up. One Ohio business conducted an informal survey that indicated staff members would consider it a morale boost if health-conscious staff members were relieved of some burden of subsidizing care for staff members who engage in behaviors that adversely affect their health.

Regardless of whether 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 workers health resources to providing incentives for healthy behaviors, businesss have a real opportunity to improve morale and productivity, reduce rates of 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 begin with small steps.