Workplace Wellness : What Will a Wellness Program Cost?

The Facts Speak for Themselves - Health Promotion Helps Reduce Costs

• A 2003 evaluation of one large USA corporation found that simply assisting employees control their blood pressure alone can save $547 per person annually.

• Johnson and Johnson claims to have saved $38 million in healthcare costs for its workers between 1995 and 1999 by promoting healthy life choices.

Healthcare costs lowered $224 per staff member each year (averaged over four years), and this rate improved over time.  The company found most benefits in the third and fourth years after wellness program initiation.

• A 2004 Univ. of Michigan study of 23,500 General Motors staff members showed that nonexercising staff members claimed at least $100 more per year in healthcare costs than exercisers.

The research study  also reported that obese, sedentary personnel who started exercising at least twice a week decreased their costs by an typical of $500 a year.

• The Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that paid workers $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays a year, producing a cost savings of $15.60 per program dollar spent.

Staff Time
Building a successful Wellness Program requires staff time in addition to money. Some larger corporations may spend 20 hours per week for three to six months preparing all the steps prior to launching a Wellness Program.
Company Costs
Monetary costs can fluctuate widely, depending on whether the company compensates all costs, the personnel pay all costs, or the costs are shared.
A 1992 study indicated that 28% of corporations spent $5 or less per staff member, and 19% spent between $6-10 per staff member.
The Health Promotion Council of America estimates the cost per staff member to be between $100 and $150 a year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of wellness programs include -
Program Type
A minimal (largely paper) wellness program          $1 - $7         

A moderate health promotion program
A medium wellness program with a few activities       $16 - $35            

A fairly comprehensive wellness program             $36 - $75      

A very extensive, effective wellness program       $76 - $112