Abstract
Corporate wellness programming is on the rise for many American employers. Lifestyle choices such as smoking, sedentary behavior, poor nutrition, obesity, and stress account for more than have of premature deaths reported on yearly basis. Moreover, chronic diseases are prevalent amongst one third of working-age Americans, accumulating to over 75% of the nation’s annual health care cost. The constant increase in health cost has had a huge impact on employers. According to Udall-Bono Healthy Workforce Bill Offers Biz Important Tax Breaks (2007), in 2006, total annual health care spending is an estimated $2.2 trillion while the average employer medical costs increased 72 percent between 2002 and 2006. By 2014 our country’s total
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In the past, employers focused on resources that would aid the treatment of employees that where sick or disabled, however due to reduced margins, global outsourcing, and the study increase of health cost this method is no longer efficient. Consequently, research shows most morbidity and mortality in relation to chronic illnesses can be prevented; the key to reducing employer health care cost is prevention. Hence, keeping healthy employees healthy through wellness programming will be the new method towards saving dollars associated with employee illness. Individual behavior and lifestyle choices such as poor diet, sedentary lifestyle, and tobacco use have presented the largest impact on the development of chronic conditions. Moreover, a high calorie diet combined with low physical activity commonly leads to excessive body weight which in turn causes obesity. Obesity is the main contributor of type II diabetes, congestive heart failure, stoke, and hypertension. Tobacco use, also contributes to these same diseases as well as cancer. Furthermore, many companies have begun developing wellness programs as a way of conquering the loss of dollars in employee illnesses and absenteeism. As stated in ROI-based Analysis of Employee Wellness Programs (2007 2). "In reality, companies that have effectively developed a wellness culture also realize cost savings in reference to retention, recruitment, reputation and employee “presenteeism”
What’s next? Some experts say that if the consumer-directed approach doesn’t succeed, em wash their hands of health care altogether. A recent study by the Employee Benefit Researc showed that the proportion of U.S. residents covered by employment-based health benefits d percent in 2000 to 60 percent in 2004. Decades from now, observers may conclude that a counter- revolution in employer coverage began in these early years of the 21st century. —Terence F. Shea
Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health
Employers are continuing to face rising health benefit costs and are constantly looking for alternatives to control these escalating costs. Health benefit premiums continue to increase at a double digit pace for employers and employees (Poor, Ross & Tollen, 2004). This escalation is putting environmental pressures on all impacted stakeholders. Companies and insurance providers are squeezing this industry to get a handle on cost while still providing an appropriate level of care. This cycle puts the patient front and center as the ultimate stakeholder who incurs changes in health benefits. This mandate of cost control, efficient operations and market share has facilitated a constant analysis of the dynamic health
The Affordable Care Act was passed in 2010 to make sure that most people had medical insurance. With this new healthcare system came the responsibility that individuals would have to take initiatives to try to stay or get healthy. The preventative care portion included in the Affordable Car Act is a big item and very important in health care reform and very positive for the American people. Wellness in the workplace has become a very important issue to help reduce companies medical cost, and to help employees get on track to know their numbers, get healthy, and have a positive healthy mental attitude. Many employees do not understand or know how to get healthy and live a healthy lifestyle. With the rising cost of healthcare relating to
In order to improve healthcare nationally and cut cost spending, preventative care and wellness should be at the fore front of every healthcare organization. Recommendations to emphasize preventative and wellness services include building a workplace that support healthy lifestyles, expand the roles of advanced providers, and expand preventative services at no cost.
The Affordable Care Act was passed in 2010, with the intent of ensuring that most people in the United States have medical insurance. With this new healthcare system came the responsibility that individuals would have to take initiatives in an effort to stay healthy or at the least, increase their level of activity and health awareness, making them more responsible for their own wellness. The preventative care portion included in the Affordable Care Act is one of the fundamental items of the law and is a particularly meaningful, very positive attribute in health care reform for the American people. Wellness in the workplace has become an essential issue to help reduce companies’ medical cost, and to help employees get on track to know their numbers, get healthy, and have a positive healthy mental attitude. Many employees do not understand or know how to achieve and maintain a healthy lifestyle. With the rising cost of healthcare, especially relating to people not taking care of their bodies, wellness in the workplace has become even more critical. Author Lori Breiner (2007) “believes wellness in the workplace has economic benefits for organizations, because if workers are healthy, they miss less time from work.” Breiner’s theory would suggest that better health increases productivity and profits in the workplace.
General motors have a great wellness program that keeps their workforce healthy. They use a program called LifeSteps which helps employees identify controllable health risk.
Foremost, the healthier a society is, the more productive employees are, which boosts revenue. When an employee’s health is in question, an employer may actually lose 77 percent of productivity, making the loss greater than that of health care expenses. These numbers go up with the combination of lack of exercise, 96 percent loss, and unhealthy eating habits, 93 percent loss, said a study from Brigham Young University, according to an article in a 2012 Education Letter. The study included “those who did not believe their workplace environment would support them in becoming physically and emotionally healthier were more likely to
Lynn Ostrowski believes that if patients would take control over their own health by preventative measures and diet, it could cut down on the need of seeing a doctor. She says, ‘Seventy percent of chronic conditions are the direct result of people’s own life choices,’ (1). She suggests that much of the preventative-health measures would be best promoted in the workplace (3). People consume most of their daily intake of calories at work, during the workday. And for most people this is the part of the day where they are least active. Ostrowski states that workplaces have a unique position in helping create healthy employees and families, because they pay for insurance and lose productivity due to sickness or disability (3). She
Optum. (2013). Optum research study: Reducing health risks with corporate wellness programs. White Paper. Retrieved from http://www.optum.co.uk/content/dam/optum/resources/whitePapers/091913-ORC-health-risk-reduction-study.pdf
Wellness in the workplace needs to be taken seriously by all employers, and employees. There has been evidence that making sure employees eat healthier leads to lower call out rates and more savings on health plans. In an article in Employee Benefits magazine it states that “Wellness management does not need to be complicated, or costly. A few simple steps could help to mitigate long-term problems, such as introducing early intervention activities that red flag cases identified via an absence reporting mechanism, the proactive management of musculo-skeletal conditions and stress, introducing a smoking cessation program or running regular health wellbeing days. “Workplace wellness as a concept has been used extensively in recent years by management in business and industry, health professionals, fitness experts, and others. This is a policy that should be implanted in all jobs. Wellness may not
The purpose or goal described in the Penn-Mart memo is a program engineered to lower employee benefit costs paid by the company. The method of attaining this outcome would be to implement a mandatory “Get Well” employee health screening and monitoring program. The author’s conclusion to the problem of a costly employee health benefit program is to institute a multi-prong monitoring program would include biometric screening described as “finger stick blood tests for cholesterol and glucose; weight, height, and waist measurement; and a blood pressure reading” as well as required health questionnaire and annual physical examinations.
Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program.
Health and wellness in the workplace is crucial to business success. Increasingly, it is recognized that the workplace itself has a powerful affect on people’s health. When people are satisfied with their job, they are more productive and tend to be healthier. When employees feel that the environment at work is negative, they feel stressed. Stress has a large impact on employee mental and physical health, and in turn, on productivity. Companies that promote healthy lifestyle habits for employees to improve their health, often take the success of the company to heart and are likely to be absent less often for health related reasons.
In the article, there are six options what company can do to help their employees to stay healthy and at the same time cut their costs.