Ask TOHP: Do wellness programs lower costs?

It’s the million dollar question! Although there isn’t an easy answer, it is clear to see that wellness programs do create cost-savings for employers who implement long-term programs.

Several studies have found that the average return on investment of a wellness program is $3 to every $1 spent, according to The Art of Health Promotion Journal (March/April 2009).

Those savings come from a combination of direct and indirect costs. Direct cost savings are seen in health insurance utilization and claims.

However, indirect cost savings can be significantly higher than the direct medical costs. Indirect costs include:

·      Higher employee productivity

·      Reduced absenteeism

·      Employee retention

·      Decreased disability claims

Most important, wellness programs help employers keep their healthy employees from becoming costly employees. As a culture, we are in an unhealthy downward spiral. The goal of every program should be to maintain employees’ current healthy status.

Where will you and your employees be in 10 years without an investment in health improvement?