From the January/February 2009 issue of Ceridian Connection

The old adage "all's well that ends well" may be sage advice. However, there is a twist on the saying when it comes to the right approach to wellness in the workplace: "begin well." While last century's benefit systems focused on acute care, America's increasing health care costs demand a culture that nurtures health and wellness at the outset.

Approximately 75 percent of all medical expense is attributed to preventable disease, according to the Centers for Disease Control and Prevention (CDC). And, the CDC projects that the cost of health care in the United States will reach $2.8 trillion by 2011. Such an alarming prediction in spiraling health care costs underscores even more of a need for companies to assess the effectiveness of their health and wellness programs.

According to the Society of Human Resource Management (SHRM) article, "Workplace Wellness Programs on the Rise in 2008," two-thirds of more than 1,100 U.S.-based organizations have a benefits strategy promoting health and productivity, most commonly through wellness programs aimed at preventing chronic conditions such as heart disease and diabetes. The number of employers implementing specific wellness programs has tripled from 2007 to 2008. While this is positive, there is growing concern about a lack of continuity among organizations' wellness offerings.

"Wellness programs are only effective to the degree that employees actively engage in them," explained Shannon Rickert, product manager, Ceridian Health & Wellness. "Employers will want to make sure that their wellness programs are attractive and easy for employees to use. It also means ensuring that multiple programs are integrated to work together harmoniously."

Ceridian LifeWorks recently surveyed a number of large employers. It found that the majority (62 percent) still report a high level of fragmentation in their health and productivity programs.

"A number of employers are using multiple vendors to deliver their programs which, in turn, makes for a disjointed employee experience and places a significant vendor management and report consolidation burden on the employer," said Eric Snyder, senior product manager for Ceridian. "Employers also cite difficulty in being able to produce meaningful return on investment reports as one of the most significant challenges facing their health and wellness program."

Perking up wellness
The Wellness Council of America affirms that as the population ages and becomes less healthy, it is likely to use four to seven times the amount of health care a younger, and generally healthier, population would consume. The long-term implications of such trends are not favorable, particularly with the aging of the "baby boom" generation and the growing evidence of the association between health risks and health costs. In addition, the increasing chronic disease burden continues to be reflected in population surveys and claims data from major health insurers.

"Employees don't understand that their wellness status affects the cost of care that is provided through benefits," added Snyder. "Therefore, there is a need to offer incentives to employees for participating in wellness programs that employers provide."

A United Benefit Advisors' survey released in May 2007 reported that 10.5 percent of U.S. employers had incentives in place to encourage employees to improve their personal health. An additional 7.6 percent of employers were likely to add incentives in 2008.

Incentives may include lower premiums, lower co-pays, flex credits, cash contributions to health reimbursement arrangements (HRAs) or health savings accounts (HSAs), gifts and merchandise discounts. However, the survey showed that the most effective incentive is lowering health insurance premiums for employees who participate in wellness initiatives because it provides a direct link to the message that you want employees to be healthier.

Put me in, coach
Employers that offer coaching programs also can encourage employees to enroll in them to learn how to manage their health risks.

"We see really great outcomes with Ceridian's weight, stress, tobacco and cardiovascular coaching programs," said Rickert. "Our coaches collaborate with the participant to help them feel empowered."

Nearly 50,000 people have participated in Ceridian coaching programs since 1997. Ceridian's health coaching programs consistently achieve outcomes well above reported national norms with 90 percent of participants completing the programs, 75 percent of participants being reached for long-term follow-up calls and a 90 percent health coach satisfaction rating.

"Just as most employers have stopped offering employer-sponsored pensions, employees are now being expected to share more of the cost of their health care benefits," said Snyder. "When employees participate in coaching and other wellness programs, they start to make this connection: if I participate and try to take more control and be more accountable for my wellness, I will pay less out-of-pocket for my health benefits."

"Many employers have implemented a 'check-the-box' program that acts as a temporary rather than a real solution to rising health care costs," added Rickert. "Employers need to continually measure the effectiveness of their wellness programs, which provides opportunities to modify the offering according to outcomes."

When it comes to your employees' health and wellness, Ceridian's extensive portfolio of solutions offers everything from prevention to intervention. We can help decrease your employees' absences and increase productivity, provide your employees with the support they need, and lower the costs of health care. Talk to your Ceridian representative to find out how.