Wellness Incentive Program Essay

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Over the last decade, with the rising rate of chronic disease and increasing health care cost in the United States, more and more employers started to concern about the impact of this trend, therefore, they have implemented employee wellness incentive program in their organization. Many of those employers believe that such program not only can reduce their financial burden and improve employees’ health, but also can reduce absenteeism and improve morale and productivity within organization. Meanwhile, some studies have been conducted to assess the effectiveness of employee wellness incentive program.
Point 1: Cost saving

Cost saving is one of the major benefits for employers to implement employee wellness incentive program. Researchers found that, over the last 15 years, preventable illness or disease makes up 70 percent or more of the total health care cost (Hall, 2008). Employers intend to use the program to reduce such preventable health risk, which can lead to expensive chronic diseases and high insurance costs. “According to a 2008 national survey by Harris Interactive, 91 percent of employers ‘believed they could reduce their health care costs by influencing employees to adopt healthier lifestyles,’ wrote two Harvard School of Public Health (HSPH) experts”(Mello and Rosenthal 2008). An early proponent of such program, Johnson & Johnson, has greatly reduced its health care cost by adopting the program. The company estimates that wellness incentive programs have cumulatively saved Johnson & Johnson $250 million on health care costs over the past decade, and the return was $2.71 for every dollar spent from 2002 to 2008 (Berry, et al. 2010). According to the Kaiser/HRET survey 2010, positive feedbacks on the effective...

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...t by studying, at a single employer, a random sample of 185 workers and their spouses. The participants were not heart patients, but they received cardiac rehabilitation and exercise training from an expert team. Of those classified as high risk when the study started (according to body fat, blood pressure, anxiety, and other measures), 57% were converted to low-risk status by the end of the six-month program. (Berry, et al. 2010)

The Kaiser/HRET survey conducted in 2010 indicates that 59 percent of employers who offered wellness programs stated that these programs improved employee health. (Mattke et al. 2012)

According to the Kaiser/HRET survey 2010, positive feedbacks on the effectiveness of wellness incentive program from larger firms (at least 200 workers) were significant, 81 percent of the firs stated that the program improved health (Mattke et al. 2012).

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