What Will a Wellness Program Cost?

The Facts Speak for Themselves - Wellness Helps Reduce Costs

• A 2003 analysis of one big U.S.  employer found that simply helping employees control their blood pressure alone can save $547 per person per year.

• Johnson and Johnson claims to have saved $38 million in health-care costs for its employees between 1995 and 1999 by promoting healthful lifestyles.

Medical expenses reduced $224 per worker per year (averaged over four years), and this rate improved over time. the business found most benefits in the third and fourth years after program initiation.

• A 2004 Univ. of Michigan study of 23,500 General Motors staff members showed that nonexercising staff members claimed at least $100 more per year in health-care costs than exercisers.

The published study  also reported that obese, sedentary staff members who started exercising at least twice a week reduced their costs by an typical of $500 a year.

• the Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that compensated staff members $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays per year, producing a cost savings of $15.60 per program dollar spent.

Staff Time                  

Building a successful Wellness Program requires staff time as well as money. Some larger organizations may spend 20 hours per week for three to six months preparing all the steps before launching a Wellness Program.                  

Corporation Costs                  

Monetary costs can fluctuate widely, depending on whether the employer compensates all costs, the staff members pay all costs, or the costs are shared.                  

A 1992 study indicated that 28% of companies spent $5 or less per employee, and 19% spent between $6-10 per employee.                  

The Wellness Council of America estimates the cost per employee to be between $100 and $150 per year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of programs include -                   

Program Type                  

A minimal (largely paper) program          $1 - $7         

A moderate program                   

A medium program with a few activities       $16 - $35            

A fairly robust program             $36 - $75      

A very extensive, effective program       $76 - $112