Companies Continue To Add Wellness Programs, Watson Wyatt/National Business Group On Health Survey Finds
April 15 2009 - 12:07PM
PR Newswire (US)
Financial Incentives to Encourage Program Use Vary in Effectiveness
WASHINGTON, April 15 /PRNewswire/ -- Despite the recession and
recent cutbacks in some benefit programs, companies continue to add
wellness and health management programs to promote healthier
behaviors among their workers. Additionally, companies are finding
greater success by offering workers financial incentives for
participation in these programs, according to a survey by Watson
Wyatt, a leading global consulting firm, and the National Business
Group on Health (NBGH), an association of more than 300 mostly
large employers. Employer interest in programs that promote a
healthier workforce continues to increase, the survey found. For
example, nearly six in 10 companies (58 percent) offer lifestyle
improvement programs, up from 43 percent in 2007, while 56 percent
offer health coaches compared with 44 percent in 2007. The number
of weight management programs is also on the rise, offered by 52
percent of companies, up from 42 percent in 2007. Also, health risk
appraisals are offered by 80 percent of companies, up from 72
percent in 2007, according to the survey of 489 large U.S.
employers conducted in January. "Employers continue to see gains
from promoting wellness and health management initiatives," said
Scott Keyes, senior group and health care consultant at Watson
Wyatt. "Effective financial incentives are one of the keys to
encouraging worker participation in these programs -- an effort
that not only improves the health of workers but also helps reduce
costs." Companies that offer financial incentives report
significantly higher participation in lifestyle management and
wellness programs, according to the survey. However, employee
participation in some wellness programs remains low. For example,
despite the rapid rise in obesity across the United States, 40
percent of companies report that less than 5 percent of their
workers participate in weight management programs. Still, many
companies struggle to track participation in their wellness and
health management programs. Incentives for health risk appraisals
are on the rise, offered by 61 percent of employers, up from 53
percent in 2008. Other programs that frequently offer incentives to
encourage use include those for smoking cessation (offered by 40
percent of employers in both 2008 and 2009), weight management
(offered by 34 percent of employers, up from 31 percent in 2008)
and full coverage of preventive services (offered by 73 percent, up
from 53 percent last year). According to the survey, even moderate
incentives can help engage employees in healthy behaviors.
Financial incentives between $51 and $100 can boost participation
in smoking cessation and weight management programs and encourage
workers to get biometric screenings. Higher participation in health
risk appraisals is associated with incentives greater than $100.
However, financial incentives have limited impact on participation
in disease management programs. "The relationship between the
amount of the incentive and the level of program participation
among employees is strong," said Sherri Potter, senior group and
health care consultant at Watson Wyatt. "A properly structured
incentive program does much more than protect investments in health
management; it creates a healthier and more productive workforce."
To view the 14th annual NBGH/Watson Wyatt report, visit
http://www.watsonwyatt.com/2009nbghsurvey. About Watson Wyatt
Worldwide Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business
partner to the world's leading organizations on people and
financial issues. The firm's global services include: managing the
cost and effectiveness of employee benefit programs; developing
attraction, retention and reward strategies; advising pension plan
sponsors and other institutions on optimal investment strategies;
providing strategic and financial advice to insurance and financial
services companies; and delivering related technology, outsourcing
and data services. Watson Wyatt has 7,700 associates in 32
countries and is located on the Web at http://www.watsonwyatt.com/.
About National Business Group on Health The National Business Group
on Health is the nation's only nonprofit membership organization of
large employers devoted exclusively to finding innovative and
forward-thinking solutions to their most important health care and
related benefits issues. The NBGH identifies and shares best
practices in health benefits, disability, health and productivity,
related paid time off and work/life balance issues. NBGH members
provide health coverage for more than 50 million U.S. workers,
retirees and their families. For more information about the NBGH,
visit http://www.businessgrouphealth.org/. DATASOURCE: Watson Wyatt
Worldwide CONTACT: Steve Arnoff of Watson Wyatt Worldwide,
+1-703-258-7634, ; or Ed Emerman for Watson Wyatt Worldwide,
+1-609-275-5162, Web Site: http://www.watsonwyatt.com/
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