Why Invest In Employee Wellness?

o  The news is not encouraging. According to Corporation Week, family health care premiums increased 49 percent from 2000 to 2004.

Another increase of 12-15 percent is expected in 2005. General Motors expects to spend $5.6 billion on health care costs in 2005, or 40 percent more than it earned in profits in 2004.

o  More research shows that poor diet andphysical inactivity are major drivers of increases in healthcare costs for employers.  The number of obese adults has doubled since the 1970s.

o  The rise in obesity has a meaningful impact on healthcare costs. on average, 2002 healthcare costs for an obese person were $1,244 higher than for a person with a healthful weight.

o  Obesity is causing rapid increases in kind 2 diabetes and contributes directly to a 65 percent increase in diabetes treatment from 1987 to 2002. Almost $1 of every $5 spent on health care in the United States is for a individuals with diabetes.

Treating worker healthcare as an investment, rather than a cost, can yield long-term dividends

o  At least 50 percent of your organization’s healthcare costs are driven by the lifestyle related behaviors of your workforce, like use of tobacco, poor diet, and lack of exercise.

o  In the past 10 years, the annual return on investment for Health Promotion Programs has been as much as $6 saved for every $1 spent, doubling the return on investment of earlier wellness programs.

o  The average reduction in health-plan costs, sick time, disability costs, and workers’ compensation is more than 25 percent for well-designed Wellness Programs.

o  Fit employees are more productive employees, with fewer sick days, fewer accidents, higher morale, and lower job turnover.