Looking for a way to keep insurance costs down? Making sure your employees are as healthy as possible is a good place to start. For many companies, that means establishing a wellness program alongside their health plan.
Health plans focus primarily on treating disease, while wellness programs concentrate on preventing disease and the healthcare costs that come with it. Studies have found that healthcare costs can be reduced by more than $3 for every $1 spent on wellness programs, and many carriers now offer plans affordable for small businesses.
See Employee Wellness, Risk Management, and Return-to-Work Programs for examples of employer-focused programs and services.
Common wellness plan features
- Health education
- Screenings for risks such as high blood pressure and high cholesterol
- Nutrition counseling
- Fitness programs
- Stop-smoking programs
- Health club membership subsidies
Wellness programs have also been associated with fewer workers' compensation and disability claims and lower rates of absenteeism, which can improve productivity and reduce overall costs.
Because wellness programs are typically voluntary, incentives can boost participation. Incentives might include promotional items, gift cards, tiered rewards based on participation level, or contests with prize levels.
Even after accounting for incentive costs, wellness programs often deliver significant savings compared with healthcare service costs and productivity losses from employee illness. Employers can also evaluate complementary options such as Reinsurance Programs to manage the financial impact of large claims and consider how coverage fits with business policies like Business Owner's Policy (BOP) for Retail and Service Businesses.
Adding a wellness program can also help maintain employee morale. To learn more about implementing a program or to review options, talk to your agent or contact your insurance representative.
Frequently Asked Questions
Are workplace wellness programs required?
No, workplace wellness programs are typically voluntary; employers choose whether and how to offer them.
What types of incentives are effective?
Common incentives include small promotional items, gift cards, tiered rewards, and contest prizes; the best choice depends on your workforce and budget.
Will a wellness program reduce insurance premiums?
Wellness programs can lower claims over time and may help contain premium growth, but results vary by program design and participation rates.