Benefits of Wellness Programs.

The costs of healthcare have been rising more than 10% annually for several years. A substantial amount of the money spent in the healthcare system treats expensive illnesses and illnesses.

• Approximately 95% of the $1.4 trillion that we spend as a nation on health goes to direct medical services, while about 5% is allocated to preventing illness and promoting health.

• Potentially, 50 percent to 70 percent of all illnesses are preventable as they’re associated with modifiable health risks.

• In an effort to optimize worker health, reduce avoidable healthcare utilization and enhance work performance, and in turn lower healthcare costs and improve worker satisfaction and retention, many companies are developing, or are interested in developing, Wellness Programs for workers.

The advantages of corporate wellness are well documented. More than 120 scientific research studies repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some major findings include the following -

• Savings of $3.48 in decreased healthcare costs per dollar invested.

• Savings of $5.82 in lower rates of absenteeism costs per dollar invested.

• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.

• Lifestyle behavior change programs -  $3 to $6 ROI within 2 to 5 years.

• Self care, decision support programs -  $2 to $3 ROI within a year.

• Disease management programs -  $7 to $10 ROI within a year.

By offering health betterment programs, corporations are not only providing an additional service for employees, but they’re also gaining financially. Further, the impact of a health betterment program goes beyond lowered healthcare cost and ROI.

A health betterment program can affect productivity, absenteeism, morale, recruitment success, turnover, and medical care costs.

* Source -  Rees, C., and Finch, R. (2004). Health Improvement -  A comprehensive guide to designing, starting and reviewing  worksite programs. National Business Group on Health, 1 (1), 1-7.