The Facts Speak for Themselves – Health Promotion Assists Reduce Costs

o  A 2003 evaluation of one large USA corporation found that simply assisting workforce control their blood pressure (BP) alone can save $547 per person per year.

o  Johnson and Johnson claims to have saved $38 million in health care costs for its staff members between 1995 and 1999 by promoting healthful lifestyles.

Healthcare expenditures reduced $224 per employee a year (averaged over four years), and this rate improved over time.  The company found most benefits in the third and fourth years after health promotion program initiation.

o  A 2004 University of Michigan study of 23,500 General Motors employees showed that nonexercising employees claimed at least $100 more each year in health care costs than exercisers.

The published study  also stated that obese, sedentary staff members who began exercising at least twice a week reduced their costs by an typical of $500 a year.

o  The Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that compensated employees $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays a year, producing a cost savings of $15.60 per program dollar spent.

Staff Time

Building a successful Wellness Program requires staff time as well as money. Some larger companies may spend 20 hours per week for three to six months preparing all the steps before launching a Wellness Program.

Corporation Costs

Monetary costs can fluctuate widely, depending on whether the company compensates all costs, the workforce pay all costs, or the costs are shared.

A 1992 study indicated that 28 percent of businesses spent $5 or less per employee, and 19 percent spent between $6-10 per employee.

The Health Promotion Council of America estimates the cost per worker to be between $100 and $150 a year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of wellness programs include -

Program Type

A minimal (largely paper) wellness program          $1 – $7         

A moderate health promotion program

A medium health promotion program with a few activities       $16 – $35            

A fairly comprehensive wellness program             $36 – $75      

A very robust, effective health promotion program       $76 – $112