More than half of U.S. companies spent significantly more on healthcare costs this past year, and nearly all of them cite controlling these costs as a priority, according to a study from the ADP Research Institute. These escalating costs are hindering business growth, and so an expert panel has been created to look at employee wellness programs as a way of offsetting these expenses.
Forty-five percent of midsized businesses already offer employee wellness programs. The challenge for these companies – and other midsized employers considering wellness programs – is evaluating program performance to drive employee engagement and program effectiveness.
According to the American Journals of Health Promotion, employers save an average of $5.81 for every dollar invested in wellness programs due to improved employee health. These benefits include:
- A 27 percent reduction in employee sick leave,
- A 26 percent reduction in health costs, and
- A 32 percent decrease in workers’ compensation and disability claims.
Moderated by Bloomberg Businessweek Senior Editor Diane Brady, the panel also featured executives from ADP®, a leading provider of employee benefits administration services, The Vitality Group, a global actuarial-based wellness program provider, and Dr. Alfred Tallia, Professor and Chair of Family Medicine and Community Health at the Robert Wood Johnson Medical School.
ADP and The Vitality Group recently announced a partnership to help midsized companies control healthcare costs with the ADP Vitality Wellness Program, an incentive-based wellness offering that motivates employees to make healthier life choices and helps lower individual healthcare costs. The interactive web-based wellness portal features health risk assessments, biometric screenings and personalized wellness plans with recommended goals and activities. As employees achieve plan goals, they earn points toward lowering their health plan contributions.
Source: ADP, November 29, 2012
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