April 2005 Issue
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E to E provides information from a business perspective that will educate regional employers about significant health care issues to help them make decisions benefiting their organizations and employees. |
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April 2005 Issue |
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ContentsControlling Healthcare Costs Through Wellness Programs
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Controlling Healthcare Costs Through Wellness ProgramsOver and over we hear your number one question loud and clear—How can I control healthcare costs at my organization? There are several approaches that can be taken, each with a potential benefit that is unique to your own company and your employees. One tactic that employers have tried with success is to offer employee wellness programs. Programs that cover exercise, proper nutrition and smoking cessation have all been implemented to increase the chances of a healthier workforce. And as an employer, you understand that encouraging healthy lifestyles for your employees may affect your bottom line by decreasing your overall insurance premiums and healthcare costs. Promoting Wellness a PriorityA survey of 354 U.S. companies conducted by the American Management Association found that most American employers—7 out of 10—believe they have a responsibility to promote wellness among their employees. However, most were uncertain how to successfully and legally implement such a program. HIPAA (Health Insurance Portability and Accountability Act of 1996) placed the legal validity of many of these wellness programs in doubt when it prohibited certain types of "health status" discrimination against participants and beneficiaries. A "bona fide wellness program" (as requested by HIPAA) must meet certain requirements, and it is at this point that the regulations become far from clear. For example if you introduce a wellness program that is designed to decrease a worker's cholesterol level, can you then refuse to give them a discount if they are unable to reach a desired level? Likewise if your employee completes a smoking cessation program but continues to smoke, are you then able to deny them lower coverage? What Can You Do?HIPAA says a plan cannot require additional premiums from high-risk individuals. However, employers continue to look for ways to reward people who do the right things to manage their health. As an employer, you may wish to consider offering various wellness programs with no strings attached. For example, you could encourage your employees to take smoking cessation or diet programs, but they would not be penalized or rewarded for results. Employers could also consider free testing for various high-risk factors, along with education or health fairs on healthy lifestyles. If you are uncertain as to programs you may wish to implement, be sure to consult your legal counsel or other professional. Finding effective programs to promote healthy lifestyles may become a unique contributor to your organization's long-term success. Further Reading
Free Creative Cost Control Seminar Offered by NIHPA four-hour investment could yield big dividends for area businesses interested in containing healthcare costs. Northern Illinois Health Plan is sponsoring a free morning-long seminar on Thursday, May 26. It is designed to help you learn more about the latest design options and strategies now available to manage your health plan's expense. Creative Cost Control is the first in a three-part Plan Diagnostic Series organized to help businesses make better health plan decisions. The session will be held from 8 a.m. - noon at Highland Community College in Freeport. Featured presentations include a case study from a local business that successfully implemented a consumer-driven plan, a review of innovative design options, and specific strategies to help prepare employees for change. Each participant receives an opportunity to arrange a complimentary consultation with plan design professionals. You can sign up for this free session by calling 815-599-6209. The registration deadline is May 23. Additional sessions are planned for this summer and fall. |
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