How Much Do Wellness Programs Save?

How Much Do Wellness Programs Save?

HMRC evaluations of health promotion between 1979 and 2000 found that worksite programs saved employers between $80 and $225 per employee annually in medical care costs, and an equal amount in productivity gains. A 1999 study found that corporations that used health and productivity management programs showed a ROI that ranged anywhere from $1.49 to $13 in benefits per dollar spent on the programs, depending on the components used.

Disease management programs had the highest return in this study (Goetzel, Juday and Ozminikowski, 1999). Other reports cited below support these findings. A sampling of abstracts demonstrating savings generated by worksite-sponsored wellness  

✔Among 45,000 blue-collar Du Pont workers, absences from nonjob-related illness dropped 14% at 41 industrial sites where health promotion was offered, compared with a 5.8% decline at 19 sites where it was not.

Results:cost-to-benefit ratio was 1.0:1.42 over two years in lower absenteeism costs (WELCOA, 2002).

✔A hospital in Everett, Washington is part of the Employee Wellness Challenge, which targets savings in care use, sick time and injuries with education in health habits and self-care practices, and a financial incentive ($250-$325).

Results:During the first four years of the program, there was a 28% average reduction in care use compared to nine other hospitals in the control group. Over nine years, the estimated savings was $3 million, with a cost-tobenefit ratio of 1.0:3.8 (WELCOA, 2002).

✔With savings estimated to be as high as $8 million, the California Public Employees’ Retirement System sent its 55,000 retirees a health risk appraisal, followed by individualized reports and self-care materials to encourage change and help reduce risks and claims (WELCOA,2002).

✔Bank of America retirees in California who chose a health promotion and demand reduction program showed a decrease in total direct and indirect costs of 11% compared with an increase of 6.3% for those who did not participate in the program (WELCOA, 2002).

✔Demand for medical services declined among 72,000 people insured with Wisconsin Education Insurance Group who had access to a self-care program and health education materials.

Results:estimated cost-to-benefit ratio of as much as 1.0:4.75 (WELCOA, 2002).

✔ The Traveler’s Company estimated a ROI to be $3.40 per dollar spent on their health benefits program during a 4-year period.

Results:total corporate savings of $146 million in benefits expense (primarily in decreased provider and emergency room visits); reduced absenteeism of 1.2 days per employee/per year; and 19% less sick leave. Wellness components included a self-care book, a newsletter, topic-specific brochures and video tapes.

✔The Johnson & Johnson Company estimated that after implementing its “Live for Life” health promotion program – one of the earliest in the U.S. – they experienced an average net savings of $154.82 per employee per year. This was determined by combining data on inpatient health care costs, absenteeism reduction for wage employees, and the health promotion/fitness costs (Opatz, 1994).

✔ Dow established a tight system of case management practices applied when returning workers to their jobs following illness or injury.

Results:The company documented more than $1 millionin savings in the first year at just one location (Mental Health Works, 2002).

✔The comprehensive wellness program at Florida Power & Light, starting in 1991, developed 27 fitness centers, included health promotion efforts and posted routine wellness messages around the worksites.

Results:Since 1992, total health care costs were reduced by 35%; workers’ compensation costs were reduced by 38% per claim since 1994; and 82% of employees reported personal health improvements (Schibelli, 1998).

✔A 4-year study of the Xerox Corp. revealed a drop in the frequency of workers’ compensation claims, as well as in average cost per injury, in those who participated in their wellness program.

Results:Among participants, 5.6% filed workers’ compensation claims and the average cost per injury was $6,506; for non-participants, 8.9% filed claims and the average cost per injury was $9,482 (HM/HMRC, 2001).

Do you have the vision? 

These results speak for themselves. 

Call today to start your worksite wellness program by calling Natalie Corcione at 708-655-2422