Corporate Wellness Incentive Plans

It is clear to most Americans (especially those of us in business) that health care costs are skyrocketing out of control. No one doubts that either the market will solve the problem OR the government will impose one on us. Managed care has failed from either a cost containment or quality of care perspective. Organizations have reached the point where the expense of offering medical insurance is almost as burdensome as government regulation. It’s time for some new thinking on health care and its influence on business and vice versa. “Corporate wellness” as an operational perspective instead of merely window dressing is one way to deal effectively with rising health care costs.

The Insurance Problem

The first step in amending the problem is to realize that an employee’s health is their own responsibility. Expecting employers to provide unlimited health insurance coverage is simply unrealistic and unreasonable. It’s time for employers (on a broad scale) to reconsider their role in providing health insurance coverage. Instead of providing complete coverage for all employees through group plans, employers should begin to change the burden of health coverage to those covered.

Here’s the approach. Provide catastrophic health insurance as a group benefit to all employees with a sizable enough deductible (say $5000 per employee) to make the expense affordable for the employer. Then, allow employees to buy their own health insurance policies (based on their own needs) and pay for them through payroll deduction with pre-tax earnings. There are numerous insurance companies that sell individual plans on this basis. Everybody wins. Workers can tailor their coverage to their own needs and circumstances using their own doctors. Businesses win by stopping the endless cycle of rising costs and ever-changing plans. And when individuals become responsible for the expense of their own insurance, they become more attentive to their own health. Besides, if an employee is interested in working for you ONLY because your employer offers great insurance benefits aren’t they telling you they’re going to cost you more money in the future?

Create a “Wellness Culture”

Our current “sickness culture” perpetuates the health care crisis and hastens the demise of market-based solutions. By sickness culture, I mean our focus on health problems rather than on having a healthy worksite and performance culture.

So, what would a “wellness culture” look like? First, instead of paid sick days, staff members might be rewarded at year’s end with an attendance bonus. Workers would be reimbursed for successful completion of smoking cessation and weight-loss programs. Corporations would invest in corporate memberships at local health clubs so every employee can participate. Workers would be provided in-house wellness programs on a variety of issues ranging from ergonomics to stress management. Finally, businesses would commit to hiring and retaining healthy staff members. Simply put, healthy staff members cost less and are more beneficial than unhealthy ones. Applicants ought to be screened for health habits and practices that limit their productiveness and increase the likelihood of future expense. While this may seem harsh, it rewards those staff members whose personal lifestyle and habits be sure the best Return on Investment by the business committing to hire, train and pay them.

Be open to “alternative and complementary” approaches

Studies published in primary health care journals reveal that people who use “alternative and complementary” health modalities (including chiropractic, acupuncture, yoga and massage) are generally healthier, better educated, take fewer medications and miss fewer days from work than the average American. Since these people look for ways to stay healthy without prescriptions and surgery, they end up being a net benefit in terms of attendance and productivity. Old prejudices in this area ought to be discarded in order for organizations to better productivity and improve profitability

Conclusion

Health Care expenditures are growing at a staggering pace. Managed care is an abysmal failure. Corporations are buckling under the pressure of offering health coverage to their employees. American competitiveness in the market is sagging. These times call for extraordinary solutions. It’s time for American employers to consider some out-of-the-box solutions to the medical care crisis. Company wellness is an approach that is timely, achievable and reasonable given the alternatives. All options must be considered while we still have a chance.