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The Harvard Business Review recently raised an important question: “Can wellness programs help employers reduce out-of-control health care costs?”

The post is written by Jim Purcell, former CEO of Blue Cross & Blue Shield of Rhode Island. He answers the question: “Most emphatically, is yes. But we must first go beyond unduly narrow interpretations of ROI (i.e., ‘claims ROI'), to understand how properly designed wellness programs can help employers lower health care costs while providing other types of cost savings and competitive advantages.”

He adds: “The real question is not whether wellness programs deliver returns. Rather, it’s what type of wellness program can reduce claims and thereby lower insurance premiums. The answer is not lifestyle programs; it’s programs that prevent at-risk employees from becoming ill and help chronically ill employees stabilize their conditions.”

The types of chronic diseases that can contribute to health costs and claims include being overweight, diabetes, blood pressure — even depression. Purcell indicates that these employees with chronic conditions can “consume at least 50% of a company’s claims expense, and focusing on them can make or break your claims ROI.”

“At-risk people should be identified through personal health assessments and biometric testing, and encouraged — not coerced — to participate in personalized care-management programs to minimize their chances of becoming chronically ill.”

For wellness programs to work, Purcell advocates:

• Ensure employees trust the program
• Apply executive leadership; make sure the CEO is visible
• Be transparent — even “open the books” to demonstrate to employees the full cost of health care coverage
• Understand that the “benefits of fostering greater workforce health and well-being that can actually exceed claims ROIs.”

Concludes Purcell: “When workplace wellness is viewed holistically without ignoring or undervaluing the total return on wellness beyond reduced claim expenses, companies can expect reduced absenteeism and presenteeism, greater employee engagement and productivity, less unscheduled paid time off, fewer workers’ comp claims, greater employee retention, increased employee satisfaction and morale, and demonstrable competitive advantage.