Fed up. That's the sentiment sweeping corporate America when it comes to the nation's health care crisis. Faced with the perpetual increases in health insurance, corporations tried such strategies as cost shifting, higher co-payments, scaled- back coverage and other changes, producing limited results for both the employer and employee.

But as workers have begun to share more of the cost of health insurance, an awareness has evolved that might offer benefit brokers and managers a significant opportunity.

Employers and employees alike have begun to realize that cutting the cost of health insurance will only come from lower utilization of those benefits. In other words, get healthy or pay a hefty price. For many the choice was health — translated into wellness.

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A Research America survey shows 82 percent of Americans are now taking the initiative to be healthy. Employees have learned it is financially, physically and emotionally beneficial to maintain a healthy lifestyle.

Another poll shows that in 2005, millions of Americans searched online wellness sites to jump-start their exercise routine. Employers took notice.

In 2005, the Bureau of Labor statistics reported almost one-fourth of all employees in the U.S. private industry sector had some form of wellness program available to them.  The State of Colorado has initiated a preventive program called "Colorado on the Move" to tackle its obesity problem. Tennessee adopted a statewide wellness program to handle health-related issues such as stress, depression, obesity, smoking and many others. The University of Southern California added "Work and Life Skills" courses to its core curriculum.

Benefits for brokers

Wellness is paying off as many corporations already are showing substantial savings. In 2005, Cigna saved $900 per employee due to wellness activities; Motorola reports $6.5 million in annual savings on medical expenses for lifestyle-related diagnoses. Though the push for wellness programs is certainly gaining momentum, it is still in its infancy.

The key to this wellness opportunity is perhaps in the data. Good information can help brokers and benefits managers implement a wellness plan and add new goals over time and as budgets allow.

Specific steps that could help companies evaluate the alternatives to added cost sharing include:

  • Analysis of health care utilization data from their insurance carrier. While this data is usually closely held by carriers, pressure can be exerted to gain access to this information: from health care to anonymous statistics and demographic data. Disease management or other conditions are dependent on such information. Many effective wellness programs begin with a simple HRA. Many HRAs are free online and can be used to develop a baseline of the population's health status. The information can be used to identify current health risks to be addressed within a defined population. This tool is an important first step to measure risk reduction and improved health status.
  • Individual data can be used to create group profiles, which are slightly more costly but a way to guide the directions of future wellness activities. This approach maximizes wellness efforts by targeting a goal instead of the "scatter shot" approach of other wellness offerings — hoping something is better than nothing and will produce "some" results.
  • Consider multi-year plan with gradual implementation and work up to full execution.
  • Include low- cost components such as sponsorship of charity walks, health fairs, and supported quitting programs. It's all about changing behavior.
  • When it comes to healthier choices, employers who engage in effective programs will see a lower cost to providing benefits, lower absentee rates and an increase in productivity. Healthy employees will have a positive impact on office morale and team building.

As health care costs and insurance premiums continue to spiral out of sight, the wisdom of using wellness programs to control health care costs may prove to be the most prudent investment an employer can make.

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