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CCH® BENEFITS — 5/2/08

Staying Power Lacking In Wellness Programs

From Spencer's Benefits Reports: As wellness programs grow in popularity, employees overwhelmingly see value in these healthy activities, but do not stay committed to them. Nearly half of employees who have joined wellness programs in the past three years admit that their participation trailed off after just a few years, according to a survey recently released by the Guardian Life Insurance Company of America.

Two-thirds of all employees and 85% of those who currently are enrolled or have participated in a wellness program in the past three years say that these programs are very effective in promoting good health. In addition, 68% of employees believe that incentives such as cash, gifts, and extra vacation days can help them to shore up the willpower to adopt healthier behaviors such as exercising, eating properly, and kicking their smoking habits.

Trips To Tahiti

“Wellness programs can be simple, affordable, and fun,” said Tim Bireley, Guardian’s vice president for group medical. “Employee incentives can be as elaborate as offering a trip to Tahiti in exchange for exercising an hour each day, or as basic as an extra vacation day for kicking a smoking habit. Insurance companies can make wellness efforts easier for business owners by embedding programs such as gym membership and alternative medicine discounts into their health plans or offering a free nurse line number that employees can use for preventive care.”

According to the study, three in ten employees either currently participate and/or have participated in a wellness program in the past three years. Only 35% of employees report that they have access to wellness programs at work. Half of those who believe that they have access at work currently are enrolled in a program.

“Workplace-based wellness programs are growing in popularity with employers, largely to promote prevention and early intervention as a means to help control the cost of health care,” said Mr. Bireley. “With only a third of employees reporting that wellness programs are available at their jobs, employers and the benefits industry have to do a better job of increasing awareness about these programs.

“There is also an enormous opportunity to educate small and midsize business owners about the benefits of wellness initiatives,” Mr. Birely continue. “If most employees at companies large and small were actively participating in wellness programs we might see a significant decline in the cost of medical care in the United States.”

A separate 2007 Guardian survey found that larger employers are more likely to embrace wellness programs. Eighty-two percent of small employers, 90% of midsize employers, and 99% of large employers see value in implementing wellness programs. Yet only 57% of the small businesses that value wellness programs have implemented some type of plan. This is compared to greater adoption in larger companies: 79% of the midsize businesses and 90% of large businesses that value wellness programs have one in place.

Acupuncture To Yoga

College graduates and the affluent are most likely to have participated in a wellness program in the past three years. Those with at least some college are more likely to favor health insurance covering complementary alternative medicine techniques. Alternative techniques or practices that employees believe should be covered by insurance include the following:

“Employees often pay for these procedures out of pocket and value insurance plans that offer either full coverage, or discounts on procedures that can complement traditional medical care,” said, Susan O’Connor, assistant vice president of group medical at Guardian. “Giving employees access to complementary alternative medicine services as part of a wellness plan is about providing them with more individual choice. More employees will become engaged in a wellness plan that is focused on improving their own health if employers respect their individuality in building that plan.”

For more information, visit http://www.GuardianBenefits.com.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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