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Worksite Wellness for Tompkins County

Worksite environments that support good nutrition and regular physical activity
in Tompkins County, NY

web site home page < http://www.tompkins-co.org/wellness/worksite/ >

Dollars and Sense

The Bottomline Benefits of Worksite Wellness 

Why employers?
Health Promotion and Wellness Programs
Research Findings
References Cited


WHY  SHOULD  EMPLOYERS get involved in wellness issues? Isn't this something that should be handled on a personal or family level?

Put aside for a moment the time when organizations and employers encouraged a culture of "one big happy family." Instead, look at the bottom line.

The cost of health care, unlike other technology and research-based products (like computers,) is increasing every year. In 2002 alone, health care costs are projected to go up 13-16 percent, accompanied over the next few years by a 15-20 percent rise in health insurance premiums, according to an article in the Feb. 2002 issue of Workforce.

These costs are unprecedented in the burden they add to an organization's bottomline.

Health Promotion and Wellness Programs

Fortunately, there is a way to hold back the trend. A growing cache of research* data links an individual's lifestyle behaviors (diet, exercise, etc.) to their health risk status (potential for developing chronic diseases or having a major medical event.) And health risk status has been tied directly to health care costs.

The good news is, worksite wellness programs have been shown to reduce health care-related costs and worker absenteeism, plus improve productivity. This mounting evidence indicates that worksite wellness should be part of every strategic plan.

Research Findings
[Numbers in brackets reference the source of information.]

 

  At least one quarter of the health care costs incurred by working adults can be attributed to modifiable health risks (e.g., diet, exercise, tobacco use, etc.) [2]

  1. As specific health risks increase (e.g., more sedentary, more overweight) health care costs increase [3]
  2. As the number of health risks increase (e.g., sedentary + overweight + unhealthy diet) health care costs increase [3]
  3. Individuals who's health risk status is high have higher health care costs than individuals with lower health risk status [3]
  4. As an individual's health risk becomes greater, the likelihood that they will experience a major, high cost medical event becomes greater. [5]
  5. As an individual's health risk status improves (decreases), their medical claims costs decline. [5]
 

Adults' poor nutrition habits are linked to $146 billion in medical costs per year (almost 15% of an estimated total national medical expenditure of $1 trillion.) [4]


Worksite wellness interventions that promote physical activity have been shown to significantly lower overall medical care costs and improve worker productivity. [4]

A study predicts that employees participating in worksite-based fitness programs will have 1.2 fewer absences per year. [6]

  Over a 10 year period* health risk factors linked to lifestyle, including high cholesterol, inactivity, and obesity, will become increasingly prevalent.**

  • This will result in total medical care expenditures rising 26.1%. [1]
  • A worksite health promotion program that simply mitigates the increase in risk factor prevalence will cut the projected rise in health care costs by almost 3%.
  • A worksite wellness program that reduces the health risk factor by 0.1% per year can cut 5.4% from the original cost projection.
  • An aggressive wellness program that results in a 1% per year decline in risk factor prevalence can slice the projected cost increase in medical care costs to 5.8%, just one quarter of the original, do-nothing scenario. [1]
  • * Projections for 1998-2008; all costs in 1998 dollars.
    ** Projected prevalence of...
         high cholesterol risk: +4.27%  
         poor exercise habits: +3.77%  
         extreme high or low weight: +2.59%  

    Three out of 5 doctors visits* and 1/3 of ER visits are "inappropriate". Cost per visit is $30 and $45, respectively. [4]

    *primary care provider


    American adults' sedentary lifestyle adds upwards of $76.6 billion in yearly direct medical costs (2000 dollars.) [7]  Click here for full article 
     


    Health-related costs in the US due to overweight and obesity is $117 billion (2000, estimated.)

    The cost of chronic disease in the US is more than half a trillion dollars (2000 total for heart disease, cancer, diabetes, & arthritis = $505 billion.) [8]

    At worksites with physical activity programs, employers have

  • reduced health care costs by 20 to 55 percent
  • reduced short-term sick leave by 6 to 32 percent
  • increased productivity by 2 to 52 percent. [8]

     


  •  

     

    References

    [1] 

    Leutzinger JA, Ozminkowski RJ, Dunn RL, Goetzel RZ, Richling DE, Stewart M, Whitmer RW. Projecting future medical care costs using four scenarios of lifestyle risk rates. Am J Health Promot. 2000; 15:35-44.

    [2] 

    Anderson DR, Whitmer RW, Goetzel RZ, Ozminkowski RJ, Wasserman J, Serxner S, Health Enhancement Research Organization (HERO) Research Committee. The relationship between modifiable health risks and group-level health care expenditures. Am J Health Promot. 2000; 15:45-52.

    [3] 

    Golaszewski T. Health risks and group-level health care expenditures. Am J Health Promot. 2000; 15:53-54.

    [4] 

    Riedel JE, Lynch W, Baase C, Hymel P, Peterson KW. The effect of disease prevention and health promotion on workplace productivity: A literature review. Am J Health Promot. 2001; 15:167-191.

    [5] 

    Edington DW, Yen LT, Witting P. The financial impact of changes in personal health practices. J Occup Environ Med. 1997;39:1037-1046. As reported in Riedel, et al., 2001.

    [6] 

    Lynch WD, Golaszewski TJ, Clearie AF, Snow D, Vickery DM. Impact of a facility-based corporate fitness program on the nimber of absences from work due to illness. J Occup Med. 1990;32:9-12. As reported in Riedel, et al., 2001.

    [7] 

    Lower Direct Medical Costs Associated with Physical Activity. CDC /National Center for Chronic Disease Prevention and Health Promotion press release. Web site http://www.cdc.gov/nccdphp/dnpa/pr-cost.htm accessed 2/20/02

    [8] Physical Activity Fundamental To Preventing Disease. June 20, 2002. Office of the Assistant Secretary for Planning and Evaluation, U.S. Department of Health and Human Services. http://aspe.hhs.gov/health/reports/physicalactivity/ accessed 7/5/02

     

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    The most credible data-based information comes from "peer-reviewed" research. This means that the entire research process, from interpretation of previous research findings and working hypothesis, to scientific method and interpretation of results, are subject to the scrutiny of other, recognized research scientists. This research is not published until it passes muster. All of the research cited here is reported in peer-reviewed journals. [BACK]