How Wellness Programs Can Help Save Cost Despite Being Given The Financial Burden Of Healthcare

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Introduction Employers have created wellness programs to tackle the unhealthy workforce issue that hampers productivity and acts as an obstacle to produce efficient results in respective industries. Health seminars, sports league games, sponsored exercises, gym facilities and health screenings are among the types of wellness programs employers have often used to stimulate a healthy workforce (Investopedia). In addition, wellness programs also include financial incentives in the form of insurance subsidies and penalties for employees that do not complete a certain requisite set forth by the employer. However, many employers are now very concerned about implementing wellness programs in their respective companies right after the Affordable…show more content…
Background of the problem with Healthcare Costs and ACA Each individual in the United States was estimated to have a healthcare expenditure of $8,086 that totaled up to $2.5 trillion overall in the year 2009 (Stone). With the changes that the ACA brings to the healthcare sector, the overall costs are projected to be $4.5 trillion by the year 2019 (Stone). The 195% increase in healthcare expense is due to the impact of the ACA and also the rise in costs for medical expertise (Kocakulah). The increasing healthcare costs continue to worry American citizens despite having the among the best facilities in the world. However, with the burden now being shared by employers across the nation, the administrative costs and healthcare costs have increased as employees that were denied coverage due to a particular criterion will have to be provided with a certain healthcare plan now (Moran). Now that employers now have to find a healthcare plan that would suit this specific employee or face a penalty that is brought forward by the ACA. In the insurance world, these individuals are considered “bad-risks” as their healthcare plan would be really costly to the point that the insurance provider would need to charge a really high premium for it (Elan). This “cost” of insurance that was previously an option, is now compulsory for employers and has made healthcare costs soar over the recent years. As many companies are trying to reduce their respective healthcare costs, they
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