Kevin Eberly's Blog | Confronting America's Obesity Epidemic

The Best Ways to Track Wellness Program Outcomes

Posted by Kevin Eberly on Fri, Apr 19, 2013 @ 11:55 AM

wellness outcomesAmerica is on the right track. According to a recent Buck Consultants survey, “Working Well: A Global Survey of Health Promotion and Workplace Wellness Strategies,” in 2012, 76 percent of companies in North America offered health promotion programs to their employees. 

However, tracking wellness programs has proven a little tricky. According to the survey, just 35 percent of firms in the U.S. measured these programs for specific wellness program outcomes, down from 37 percent in 2010. 

There could be several reasons for this decrease. The most commonly cited factor: lack of resources—time, money, staff. 

But tracking wellness program outcomes doesn’t necessarily require an abundance of resources. In fact, research consistently shows programs that are in place for five years or more see the most significant cost savings. Five years may seem like a long time, and I understand this requires patience, but the long-term rewards are often worth the effort. 

While I like statistics and fact-based results as much as the next guy, the success of a wellness program doesn’t have to be measured by numbers alone. You can often see signs of progress through observation, by taking a few minutes a day to leave your desk and walk around the workplace. 

What do you see? Do your employees seem more productive? Are they happier? Do you notice a boost in office morale? Are your employees continuously engaged in the program? It’s the intangible factors provided by a well-designed wellness program that can boost your business. 

Beginning in January 2014, we will enter a world where the Affordable Care Act focuses on rewarding providers and payers who take preventable measures. Positive outcomes from conditions like medical weight loss will ensure full insurance reimbursement and lower overall healthcare costs. While it may take time to get full traction in the workplace, it’s an effort to take the cost burden off employers and motivate employees to take wellness seriously. 

In the long run, with this system everyone wins. Employers are satisfied because healthier workers are less costly, more productive, happier workers. Employees are given a little extra push (and maybe it’s the final push they need) to make necessary changes in their health. The obesity numbers in this country are disturbing, and it’s time we take responsibility for our behaviors. 

Tags: workplace wellness, healthcare, wellness programs, affordable care act

Obesity No. 1 Risk Factor for Huge Healthcare Costs

Posted by Kevin Eberly on Tue, Apr 02, 2013 @ 02:42 PM

obesity screening imageA recent study researching employee healthcare spending found 10 health risk factors, which could be altered by making lifestyle changes, contribute to more than one-fifth of employer and employee spending.

The study, which was published in Health Affairs, found that 22.4 percent of $366 million spent annually by seven companies was attributed to the following risk factors:

 

• High blood pressure
• High cholesterol
• High blood glucose
• Depression
• Obesity
• Stress
• Tobacco use
• Poor diet
• Physical inactivity
• Excessive alcohol use

Obesity, no surprise to me, clocked in as the highest cost per capita per year, followed by physical inactivity. Obesity costs alone clocked in at $347 per capita per year.

Yes, it’s jaw dropping. But here’s what gets me: The majority of these risk factors are largely prevented by controlling your weight. If this isn’t a strong enough case for the importance of employee wellness programs, then I’m not sure what is.

Upcoming changes to the Affordable Care Act encourage employers to invest in wellness programs, myself included.

Currently, employers can charge higher insurance premiums without discussing steps with their employees to better their health. Beginning in January 2014, employers will have to refer employees to various wellness programs in order to charge higher insurance premiums for not meeting a specific goal. If an employee refuses to participate, an employer will legally be allowed to increase premiums up to 30 percent higher than the standard premium, as long as employees are given ample time to change their habits through a wellness program.

Essentially, this change, which seems slight, can significantly alter the way we look at changing our lifestyles. This requires employees and employers to have the obesity conversation, regardless of whether they want to. It brings the issue to the forefront of employers’ and employees’ minds. It forces everyone to acknowledge it.

Hopefully, the focus on wellness programs will decrease the cost of these risk factors, leading to reduced overall healthcare costs. It’s a win-win situation.

As an employer, if I’m going be required to invest in and recommend wellness programs to my employees, I’m going to take the time to look at the facts and suggest a program with proven results.

A study published in the American Journal of Medicine found physician-directed medical weight loss produces significant, effective, and sustainable results. It makes sense. We trust our primary care physicians with the majority of our chronic health problems, so why would our weight be an exception?

I strongly believe the majority of these risk factors cited can be controlled with the guidance of trained physicians. Do you think these changes will lower long-term healthcare costs?

Tags: obesity prevention, health risk factors, weight loss, healthcare spending, affordable care act

Workplace Wellness: Pros and Cons of Incentives and Penalties

Posted by Kevin Eberly on Thu, Mar 14, 2013 @ 04:20 PM

Some employers have sticker shock when they see the cost of workplace wellness. Understandable, it’s costly, but let’s look at the bigger picture: Studies show for every dollar spent on wellness programs, medical costs fall an average of $3.27, and costs for days that employees are absent fall $2.73. 

It’s easier to understand when you crunch the numbers: Workplace wellness programs are not costing you, but they are actually saving you money. I’ve stressed the importance of obesity prevention, and employers are in a powerful position—they have a say in the health of their employees. I believe that incentives, especially when coupled with leadership from the top, allow employees to understand their employers’ priorities. 

In 2014, the Affordable Care Act will expand employers’ ability to reward or penalize workers who participate in and meet the goals of various wellness programs. When there is change, particularly in healthcare, there are questions. How will this impact employee plans? 

Many expert consultants advocate incentives early on as a way to encourage employees to make proper wellness choices that can have a positive impact on their longer term health and well-being and result in lower future healthcare-related costs. In the future, employees might be choosing health plans from a menu of options and have to pay for the difference of the cost of the plan and a subsidy provided by their employer. If this is the way things unfold, it would be in the best interest of employees to focus on wellness so they can choose cost-efficient health plans in the future. 

Of course, in line with most things in life, providing incentives and penalties have pros and cons. What works well for one employer may not work well for another. Here, I will acknowledge both sides, and let you decide which program will resonate best with your company.  

THE PROS

Incentives can make people happy. By covering the cost of a wellness program, or even just covering a portion of the cost, employers have the ability to take the cost burden of the most efficient programs off of employees’ shoulders. Investing in clinically-proven wellness programs fosters healthier, more productive, and happier employees.   

Financial rewards may generate weight loss results. Studies indicate programs that use financial rewards have positive results and may be effective in producing weight loss. Valued incentives lead to more participation. This could include gift cards, bonuses, or awards of different amounts based on various levels of success. 

Penalties, such as higher health insurance premiums if an employee does not meet the company’s goals, may motivate employees to stick with it. On the contrary, you can also penalize employees who do not meet the company’s wellness standards. In the perfect world, everyone would be healthy simply because they know it’s good for them. But that’s not always the case. Employees are aware that health insurance is costly, and for some, taking money out of their pocket is just the push they need to achieve weight loss. 

Contests and competitions can boost morale and encourage participation. Friendly competition can go a long way. If you work in a competitive environment, it may be beneficial to make wellness a competition. Plus, it puts everyone in the same boat, so it can make sticking to a weight loss plan fun, encouraging, and supportive. 

A wellness program that demands results equals a healthy and wealthy company. Making wellness a priority by providing incentives can attract the best employees to your company. It shows you care about the well-being of your employees, which will in turn make top prospects want to work for you. 

THE CONS

It can discourage employees from participating in the company’s health benefits. For some, the idea of required participation in a wellness program is intimidating. If an employee doesn’t reach the company’s goal and money is involved, it can potentially add stress. Participation then becomes unaffordable and an employee may seek health benefits elsewhere. 

Behavioral differences. We come in different shapes and sizes, and that’s OK. Health is made up of numerous factors, and some are out of a person’s control. For instance, some people are genetically predisposed to high blood pressure, high cholesterol, and even diabetes, and it is important to take these factors into consideration when developing an effective wellness program. 

Tags: workplace wellness, penalties, affordable care act, incentives