Incentives are Key to Successful Wellness Program

A survey conducted by payroll company ADP this year showed that wellness programs are one of the best ways for employers to promote a healthy workforce, contain rising health care expenses, and generate productivity among their employees.

However, while 79 percent of large and 44 percent of midsized companies offer wellness programs, over 60 percent of these companies do not measure their return on investment. Yet, the majority of midsized and large companies report their wellness programs met or exceeded their senior executives’ expectations in regards to reducing overall healthcare costs. Here are some stats ADP provided from the study:

• The majority of companies provide voluntary or incentive-based wellness programs, but 15 percent of midsized companies and 12 percent of large ones make participation in these programs mandatory.
• Reasons that employers cite for offering wellness programs vary. A strong majority (81 percent midsized, 78 percent large) say they are most interested in improving employee health, closely followed by controlling health care costs. Additionally, a third or more are interested in attracting and retaining employees, and maintaining or increasing benefits offerings.
• Midsized companies have been offering wellness programs to employees for about six years and large employers for about six and a half years. An average of 51 percent of employees in midsized companies and 39 percent of employees in large companies participate in these programs.

Employers agree that running a successful wellness program still comes down to engaging employees to participate. As reported in a study conducted last year by Incentive Research Foundation, only one in five employees participate in a wellness program without rewards; however, four out of five people join when incentives are offered.

A recently-released proposed rule describes the parameters for implementing the new ACA provision allowing employers to increase the maximum permissible reward under an employer wellness program from 20 percent to 30 percent of the cost of coverage.  With this new provision, employers and employees both will have more motivation to design and implement successful wellness to impact health care costs.