Why Wellness

Unhealthy Employees Cost More

A study conducted by the Health Enhancement Research Organization (HERO) examined more than 46,000 employees from across the United States over a three-year period. This study concluded:

• Those with poor exercise habits had medical expenditures that were 28% higher than those who had good exercise habits.
• Individuals with the highest stress levels had 45% higher medical expenditures.
• Similarly, other early detectors of poor health were also associated with higher medical expenditures – notably: high blood pressure (24% higher), obesity (48% higher), high blood sugar (54% higher), and multiple risks for heart disease (228% higher).

Each of these conditions has been clearly linked to modifiable health risk behaviors such as:

• Physical inactivity
• High stress
• Poor dietary habits

The Center for Medicaid Services projects a 220% increase in health care costs in the next decade. Poor health costs fall into two types: direct and indirect. Research has shown that well-designed health and productivity management programs can reduce both of these types of costs.

Employers’ median opportunity for direct health and productivity cost savings is approximately $2600 per employee.1

Return on Investment (ROI) in worksite health promotion2

Direct Costs:

• Medical
• Pharmaceuticals

Indirect Costs:

• Absenteeism
• Presenteeism (on-the-job productivity)
• Worker's compensation
• Short and long-term disability
• Employee turnover

1 Goetzel RZ, et al. Health and productivity management – establishing key benchmarks and best practices. J Occup Environ Med. 2001;43:10-17
2 Medical and absenteeism costs are from Aldana SG. Financial impact of health promotion programs: a comprehensive review of the literature. Amer J. Health Prom 2001;15:296-320. Presenteeism costs are an estimate based on published literature.

Prevention Is Your Top Producer

The Kellogg Report stresses that the long-term solution to rising health care costs is prevention. Improved nutrition alone was estimated to save $27.8 billion nationwide.

Source: Beasley J, Swift J: The Kellogg Report. The Impact of Nutrition, Environment and Lifestyle on the Health of Americans. 1989