What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Helps Reduce Costs

• A 2003 investigation of one big USA  corporation found that simply assisting workers control their blood pressure alone can save $547 per individuals 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.

Healthcare expenses decreased $224 per staff member per year (averaged over four years), and this rate improved over time. the company found most benefits in the third and fourth years after program initiation.

• A 2004 University 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 stated that obese, sedentary workers who started exercising at least twice a week decreased 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 workers $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 in addition to money. Some bigger organizations may spend 20 hours per week for three to six months preparing all the steps before launching a Wellness Program.                  

Company Costs                  

Monetary costs can fluctuate commonly, depending on whether the company pays 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 staff member, and 19% spent between $6-10 per staff member.                  

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 comprehensive, effective program       $76 – $112