Wellness Programs Help Employers Save (ROI)

What if employers could establish a program that made their employees healthier and thus lower their health care costs? As it turns out, wellness programs do just that.

It makes sense. Healthier employees should cost less to insure. A recent study conducted by Highmark Inc., a 12,000-employee health insurer based in Pittsburgh, shows results that support this hypothesis. According to the Society for Human Resource Management (SHRM.org), “In 2001-05, medical claims for 1,900 Highmark employees who participated in its wellness programs were compared with the claims of employees with similar health risks who did not participate. The analysis shows that the company saved $1.3 million during the time of the study, mainly because its annual health care expenses for participating employees were $176 lower per employee. Highmark’s total expenses for its wellness programs were $808,958 during this time, yielding an ROI of $1.65 for every dollar spent on wellness initiatives.”

It’s encouraging to hear that we can now quantify the benefits of better health. The message is clear: wellness is an investment with a positive ROI. Better health = fewer claims = lower employer health care costs.

Not to brag, but we’ve been saying for a while now.

For more information visit: http://www.shrm.org.

Written by: Gregory Schnese