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What measures have you taken within your company to curb rising healthcare insurance costs?
Today's crushing healthcare costs have forced many companies to pass along  30+% increases in healthcare premiums to employees, or reduce their level of benefits. Passing on the increasing burden of healthcare coverage to your employees will result in disgruntled staff, and does not address the cause of those rising costs: poor health caused by inactivity, obesity or lack of proper care of chronic illness.
Adding a benefits program that includes fitness gets you closer to your goal of reduced healthcare costs, improved employee loyalty, less turnover, and increased productivity. Otherwise, healthcare costs will continue to take a toll on your company's bottom line, cut into profits and limit company growth.
Here are a few eye-opening statistics:
 Healthcare costs have tripled since 1998, and are expected to double again by 2012 according to a Kaiser/HRET survey of Employer Sponsored Health Benefits, 2003.
In 2005, health insurance premiums jumped 9.2 percent - more than three times the
rate of inflation.
According to the Wellness Council of America, preventable illnesses make up approximately 70% of the burden of illness and the associated cost.
Prescription drug costs:
According to a 2005 study by Mercer, the average annual prescription drug costs for large employers grew 11.5 percent making it nearly a decade straight of double-digit increases in cost.
Absenteeism:
Absenteeism has cost companies $660 per employee in years past and is rising, with nearly one-third of organizations characterizing the trend as a serious blow to profits.
Presenteeism:
Presenteeism is the cost associated with employees who work at decreased productivity levels. According to a 2004 study by the Institute for Health and Productivity Studies at Cornell University, 60% of the total cost of employee illnesses come from presenteeism.
There is a strong parallel between the physical health of your employees and the financial health of your company. Company health premiums are based on use by employees. When your employees are healthier, they make fewer claims. They use fewer prescriptions. They face fewer catastrophic illnesses. For you this means company health premiums stabilize, or even decrease.
 Companies with corporate wellness programs have seen an average of 28% less sick leave taken, 26% less direct healthcare costs and a 30% reduction in workers compensation and disability costs. One study showed that with the right kind of wellness program, health claims and absenteeism begin to drop within 4 to 6 months of implementation. Adding a benefit such as America's Wellness Program shows your employees you care. Research confirms that more satisfied employees are three times less likely to look for employment outside their current position.
The evidence is clear that strategically designed wellness programs can reduce both direct and indirect healthcare costs. A 2004 review of health promotion programs revealed that, in total, an investment of $1 by a company in wellness programming returned a median cost savings of $2.05 to $4.64. That is millions of dollars saved without adding new benefits.
Read on to find out why America's Wellness Program is one of the most advanced and efficient programs to implement in your company. Our program can help provide you with an answer to adding auxiliary services without the huge cost and creating a workforce that is healthier and more productive. Please visit our Why America's Wellness Program tab. |
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