Corporate Wellness : What Will a Health Promotion Program Cost?
Posted by Corporate Wellness | Posted in Corporate Wellness, Wellness Programs | Posted on 24-08-2010
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The Facts Speak for Themselves – Wellness Helps Reduce Costs
A 2003 investigation of one large U.S. company found that simply helping personnel control their blood pressure alone can save $547 per person each year.
Johnson and Johnson claims to have saved $38 million in health care costs for its workforce between 1995 and 1999 by promoting healthful life choices.
Health care expenses reduced $224 per employee per year (averaged over four years), and this rate improved over time. The business found most benefits in the third and fourth years after health promotion program initiation.
A 2004 Univ. of Michigan study of 23,500 General Motors personnel showed that nonexercising personnel claimed at least $100 more a year in health care costs than exercisers.
The study also stated that obese, sedentary employees who began exercising at least twice a week decreased their costs by an average of $500 a year.
The Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that compensated staff $10 per pound lost, up to 25 pounds.
Program participants missed three fewer workdays each year, producing a cost savings of $15.60 per program dollar spent.
Staff Time
Building a successful Health Promotion Program requires staff time in addition to money. Some bigger corporations may spend 20 hours per week for three to six months preparing all the steps before launching a Health Promotion Program.
Company Costs
Monetary costs can fluctuate commonly, depending on whether the corporation pays all costs, the staff members pay all costs, or the costs are shared.
A 1992 study indicated that 28 percent of corporations spent $5 or less per staff member, and 19 percent spent between $6-10 per staff member.
The Wellness Council of America estimates the cost per worker to be between $100 and $150 annually for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of wellness programs include –
Program Type
A minimal (largely paper) wellness program $1 – $7
A moderate health promotion program
A medium wellness program with a few activities $16 – $35
A fairly comprehensive wellness program $36 – $75
A very robust, effective wellness program $76 – $112

