Of American businesses with at least 50 employees, 80% have some type of health promotion program. Furthermore, a study by the Integrated Benefits Institute found that almost 70% of American companies said they would increase the money available for at least one health or productivity management initiative.
It's the HR department that will likely be faced with finding a wellness benefits vendor. Just considering the various ways that different providers price and bundle their services, it can be a daunting task to find the right wellness vendor. Benefit personnel should keep these eight questions in mind as the search starts:
Questions to ask a wellness vendor
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Are Wellness Programs Integrated? Keep in mind that the program's effectiveness and success hinges on how well it's built to accomplish an end goal. The provider should be willing and capable of designing integrated wellness programs. Here's an example – the provider develops an online health risk assessment (HRA), employee communications about HRAs, an incentive program to promote the HRA getting completed, and then records and reports the HRA data to your company in an easily accessible manner.
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Is Customization an Option? Customization is something that may or may not be offered, may or may not be charged for, and may mean something very different from vendor to vendor. Determine if there will be additional fees for customization services and what the vendor considers customization. One company may consider color options customization, while another may mean the ability to fine-tune the program to the needs of your workforce. If a vendor can't provide clear, upfront answers to your customization questions and can't create wellness strategies that fit your company, you might want to look elsewhere.
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Pricing? First, ask vendors if they have a minimum size requirement for any of their wellness programs. Second, ask each vendor how they've structured their prices — per employee, flat fee, per screening, per participant, etc. Third, ask each vendor about additional and hidden fees, such as for HRAs, special reports, online setup, and branding.
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How Are Services Delivered? Services can be delivered by phone, internet, postal mail, or on-site. The ideal provider will be capable of all these options and able to determine the right combination to reach your workforce. Also ask if the vendor subcontracts third parties to administer services or uses their own staff, since subcontracting can affect who gives vaccines, who manages websites, and who conducts health coaching.
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Is Legal Compliance Guaranteed? To protect your company from legal actions, it's important the vendor guarantees in writing that they'll maintain compliance with relevant federal regulations and with any state-specific rules that may apply for multi-state employers. Such an agreement helps ensure your wellness program is legally compliant.
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Is the Vendor Experienced and Reputable? The wellness industry has grown rapidly, and many new vendors have entered the market. It may be worth choosing program offerings and outcomes over name recognition. Research whether lesser-known vendors have had success with businesses similar to yours in size, employee population, or trade.
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Will the Vendor Remain Compatible if I Change Health Plans? Compatibility with a current health plan does not guarantee compatibility if you change plans. Many businesses change insurers over time, and health plan compatibility will be a major concern for multi-state companies that may use several different health insurers.
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Is The Vendor Accredited? Determine if the vendor is accountable to an accrediting body, such as a national credentialing or quality assurance organization. You can also check a vendor's quality assurance by looking at their service recovery policy, success rate, and defect rate.
For employers reviewing business-level coverages that can intersect with benefits and operations, see Business Owner's Policy (BOP) for Retail and Service Businesses.
If your company operates in a specialized field, consider industry-specific programs when assessing vendor fit, for example Solid Waste Haulers/EIA Program.
Frequently Asked Questions
How much customization should I expect from a wellness vendor?
Expect vendors to offer at least basic customization like branding and communications, and ask for specific examples and any fees for deeper program tailoring.
What legal protections should a vendor provide?
A vendor should provide a written guarantee of compliance with applicable privacy and benefits laws and explain how they handle protected health information.
Should I prefer larger, well-known vendors over smaller ones?
Not necessarily; prioritize demonstrated outcomes and relevant experience over name recognition, and ask for client references in similar industries.