July 2002 (Newstream) -- In an effort to contain rising health care
costs and increase productivity, more U.S. companies than ever are
offering health promotion and management programs. A new study by
Hewitt Associates, a global outsourcing and consulting firm, shows
that 93 percent of U.S. companies currently offer some kind of
health promotion program, up from 89 percent in 1996.
"Because employers are under increased cost pressures, there is a
renewed interest and excitement about health promotion and medical
management programs that can provide cost savings, reduce
absenteeism and increase productivity," said Camille Haltom, a
health care consultant with Hewitt Associates. "We expect that
organizations will not only continue to offer health promotion
programs but look for ways to enhance and expand existing programs
for employees. Currently, disease management is the area of greatest
interest because it allows employers to measure results in a shorter
time period compared to traditional wellness programs, which can
take up to three or five years."
The following summarizes various types of initiatives that a growing
number of companies are offering:
Seventy-two percent of employers offer employees some kind of
education or training, a 2 percentage point increase since 1996.
Programs range from seminars and workshops to counseling for
lifestyle habits that contribute to chronic or acute conditions.
Financial incentive and disincentive programs hold steady with 42
percent of companies continuing to offer them, compared with 34
percent in 1996. The most common incentives companies offer are
gifts or monetary awards for employees who participate in health
appraisals or screenings.
Examples of disincentives include charging employees higher
medical or life insurance premiums if they smoke, or giving
employees a lower medical benefit payout for not wearing a safety
belt while involved in a car accident, or under the influence of
alcohol or drugs.
Seventy-six percent of employers currently provide disease
management programs to employees. The majority (84 percent) of
companies offer these programs through self-insured and/or fully
insured health plans.1
Twenty-eight percent administer health risk appraisals
(questionnaires) to analyze an employee's health history and promote
early detection of preventable health conditions. Most employers use
appraisals periodically (44 percent) or annually (40 percent).
Online applications are making it easier to provide serial
evaluations that can help participants understand the impact of
changes in health habits. The questionnaires are often administered
in conjunction with broader health management initiatives.
Exactly three-quarters of employers use health screenings, up
from 68 percent in 1996. Most administer screenings to detect high
blood pressure or cholesterol through their health plans or via
on-site health fairs, mobile units for mammography or other
screenings.
Seventy-nine percent of corporations offer employee special
programs for disease and medical management, flu vaccinations,
well-baby/child care, and prenatal care, compared to 63 percent in
1996.
More than three-quarters (81 percent) of companies offer
additional initiatives, which include a broad variety of activities
or incentives designed to heighten an employee's awareness of
healthy behaviors. Some examples are: smoke-free workplace (57
percent), health fairs (42 percent), on-site or employer-owned
fitness facility (35 percent), employer-sponsored sports
teams/tournaments (30 percent), and discounts at local health clubs
(23 percent).
"More companies are exploring health promotion and disease
management programs as part of their health care strategy for next
year," said Haltom. "Organizations have been interested in disease
management programs for several years now and they're growing in
popularity because the market is mature enough for health plans and
specialty providers to address employer's needs and help contain
costs."