Case Study: Keeping Healthcare Costs in Check Through Wellness

by | Jan 10, 2014 | Miscellaneous

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“Over the course of a year, an employer can expect to spend $10,500 per employee in health care costs, a number that has risen steadily for decades. More and more, these rising costs mean that companies are finding their financial health tied to the health of their employees, prompting many to seek out new ways to promote active and healthy lifestyles,” Outdoor USA Magazine reports.

“In addition, businesses face increased regulatory pressure to keep health costs down, since starting next year, provisions in the Affordable Care Act [a.k.a Obamacare] will penalize employers if employees opt out of less affordable employer plans in favor of the new insurance exchanges. The penalties don't apply to businesses with fewer than 50 employees.”

“In response, wellness programs, loose collections of financial incentives for meeting goals like losing weight, quitting smoking, and getting yearly physicals, are on the rise. A study by health care and financial planning giant Mercer found that in 2012, half of large employers (companies with 500+ employees) offered wellness programs. The same study found out that they contribute to decreased costs; combined with high-deductible health plans, wellness programs save employers 20 percent on health care costs.”

“Performance sock-maker Wigwam is well ahead of the trend. It's had a wellness program for its 200 employees since 1995. The program has grown over the years, and today it consists of a yearly health fair that offers employees blood tests, vision tests, a health risk appraisal, and even perks like massages and yoga sessions. The company has also held ongoing programs, like a Biggest Loser contest.”

Written By Laura McKenzie

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