Rising insurance premiums and new incentives provided by the Affordable Care Act are pushing more companies toward employee wellness and health promotion programs.
Research shows healthy employees lead to more productive workplaces. Gallup reports the cost of unhealthy workers in the United States is about $153 billion a year. The loss comes from low-productivity and morale, employee turnover and absenteeism.
At A Glance
Wellness Programs
Examples of participation-based wellness programs:
• Incentives, such as gift cards, to participate in a health fair
• Waiver of co-payment/deductible for well-baby visits
• Reimbursement for gym membership
• Reimbursement for smoking cessation programs (regardless of outcome)
Examples of standards-based wellness programs:
• Providing a premium discount to employees who have an annual cholesterol test and achieve cholesterol levels below 200
• Waiving the annual deductible for employees who have a body mass index within a specified range
• Imposing a surcharge on employees who don’t provide an annual certification that they have not used tobacco products within the past 12 months
Source: American Cancer Society
"The reason they do it is the same reason a company does anything: improve the bottom line," said Jean Henry, associate professor of community health promotion at the University of Arkansas.
She said corporate health programs aren't a new phenomenon, but have changed dramatically since the 1970s. Wellness programs in the past were typically tied to brick-and-mortar sites and have now shifted to include fitness coaches and online and telephone assistance, she said.
A 2013 survey by Fidelity Investments and the National Business Group on Health found 86 percent of employers offered wellness-based incentives, up from 57 percent in 2009.
Corporate wellness programs generally fall into two categories: participation and standards-based, said Cammie Scott, president and owner of CK Harp & Associates, a business consulting firm based in Springdale.
Participatory programs include exercise and nutrition classes encouraging employees to engage in wellness actives, but have no participation requirements.
Standards-based programs can include offering discounts to employees for health insurance premiums, deductibles or other forms of cost sharing if they meet certain requirements such as being a nonsmoker.
Scott said programs must offer a reasonable alternative option for someone who can't meet a designed plan, such as creating an shorter walking program for an obese employee.
The Affordable Care Act changed the amount a employer can reward workers for meeting certain standards from 20 percent to 30 percent. Scott said this can be looked at as either a reward or a surcharge.
Mercy Northwest Arkansas hits both categories through its Healthification program. Kyle Brunen, Mercy's Health & Wellness program manager, said the program includes membership discounts to the Northwest Arkansas Family YMCA and up to $800 each year for aspects of the program such as screenings and tracking fitness progress.
Mercy was a partner in bringing the YMCA to Rogers in 2011, and Brunen said a common misconception if the YMCA is only available to Mercy employees.
"We have a 50-50 partnership with the Y and the joint venture helps our employees have a place to exercise, but it also gives the community a place to go," he said. "Everyone has access to it."
The medical system also recently started charging smokers a $25 per two-week pay period surcharge.
"Smokers have the ability to have that surcharge waived if they are willing to participate in a tobacco cessation program," Brunen said.
Washington Regional Medical Center in Fayetteville also offers employees discounted rates to exercise at a facility it also opens up to community members. The Washington Regional Center for Exercise in Fayetteville also hosts group exercise classes for employees, said Mike Osborn, manager of the center and head of the wellness committee.
"Throughout the year, we also offer special employee-only classes and other events to help motivate employees to achieve and maintain wellness. Our employees appreciate the benefits of having the center conveniently located on the medical center campus and having certified personal trainers available to help them meet their fitness goals," he said.
Marty Rosen, executive vice president at Health Advocate, a health care advocacy and assistance company in Pennsylvania, said it all comes down to company leaders trying to create a "culture of wellness."
"These programs can also be driven by the culture of the business or even the CEO," he said. "At the end of the day, what is really at the heart of this is getting employees and their family members more involved in their health and the decisions they make."
Henry said removing barriers and providing motivation and incentives are key to successful programs. Barriers typically include cost, time and convenience, she said.
Greg Arthur, owner of NWA Training Solutions, is hoping his business plan will attract companies for the convenience aspect. He wants to provide on-site corporate fitness programs.
"If a company is just paying a gym membership for an employee, that person can just quit going," he said. "We can keep them motivated by going to their workplace."
A company doesn't need a large workout facility to make corporate fitness work and can often achieve wellness goals by transforming a conference room into an exercise space for a couple of hours, he said. Arthur said programs can also be designed around minimal equipment such as dumb or cattle bells and medicine balls.
Mica Mitchell, group fitness and spa director at Fayetteville Athletic Club, said the gym works with employers in several ways from offering discounts to a company's workers if a certain number join to sending trainers to offices.
"We also have a small business owner that pays for all his employees' memberships," she said. "And some insurance companies will pay for memberships."
NW News on 01/20/2015