What Happened?
Kanawha County, West Virginia, has reported improvements in public employee health after implementing mandatory physicals and health initiatives five years ago. The boost in employee wellness has paid off with lower insurance costs.
Goal
Five years ago, Kanawha County started to make annual physicals mandatory for public employees and their families looking to be insured on the county’s health plan. The county also launched:
- Smoking cessation assistance program
- Discounted memberships to a nearby community center with fitness facilities
- Nutrition assistance
One department went so far as to build a workout center in a public building to make it easier for employees to exercise, the Charleston Daily Mail reported.
After implementing these wellness programs, county employees showed an increased appreciation for health insurance coverage and are taking advantage of the benefits to support healthier lifestyles. Several workers lost significant weight, while others have detected signs of health concerns early and are receiving treatment.
In addition, the county reported a significant reduction in the annual increase in health insurance premiums: down to about 6 percent compared to 20 percent annually in the past. The county spends around $6 million each year on employee health insurance, which accounts for 80 percent of the premium and employees cover the remaining 20 percent.
How The Private Sector Does It
Many private employers are adopting wellness programs to make their workers healthier, which in turn cuts down on insurance costs in the long-term, and the public sector is taking notice.
The latest Kaiser Family Foundation survey revealed private employers use financial incentives to improve worker health such as discounts on health insurance for employees who participate in wellness programs, or increased costs for individuals with unhealthy habits like smoking. The survey found:
- 36 percent of companies with more than 200 workers use financial incentives to motivate worker wellness
- 51 percent of companies with more than 200 workers reward employees for completing health risk assessments to identify health issues
In addition, 98 percent of employers with more than 200 employees offering health benefits provide at least one of the following wellness programs:
- Weight loss program
- Discounted gym memberships
- On-site exercise facilities
- Biometric screening
- Smoking cessation programs
- Personal health coaching
- Nutrition classes
- Flu shots or vaccinations
- Healthy living resources
About 71 percent of employers of all size believe these wellness programs are “very” or “somewhat” effective at lowering health costs and improving wellness, compared to 47 percent for greater employee cost sharing and 33 percent for more restricted provider networks.
CEO Guidelines
A group CEOs of major corporations recently formed the CEO Council on Health and Innovation to test different employee wellness initiatives and develop best practices for other employers to imitate. The collaboration has created a report on the different strategies they have used to improve employee health, reduce health costs and address inequities.
The council’s report breaks down the elements needed to improve individual health and wellness of employees. The CEOs recommend employers implement health and wellness programs to address:
- Nutrition
- Physical activity
- Tobacco use
- Emotional and behavioral health
- Management buy-in
The council suggests employers keep track of employee health data and share outcomes to praise improvements and educate workers on successful strategies.
Modern Healthcare
Gov1 has followed several public employee benefits debates and new tactics deployed to cut down on health costs.