Message from Preston – July 2014

Healthier employees lead to lower premiums. The benefits of having healthy workers transcend reduced health care costs, including workers’ compensation and lower absenteeism. Healthy workers are less prone to injury and when injured, they recover quicker than less healthy workers. If workers change and modify their lifestyle and reduce their health risks, medical costs decline.

A University of Michigan study of a Midwest utility company’s workplace wellness program found that over nine years, the utility company spent $7.3 million for the program and reaped $12.1 million in savings. Medical and pharmacy costs, time off and worker’s compensation factored into the savings. The study, which took into account a number of costs, including indirect costs of implementing wellness programs, such as recruitment and the cost of changing menus, showed that wellness programs work long-term even though employees aged during the course of the study.

Here is the bottom-line (and how employers can improve their bottom-line): Companies need to make a commitment to helping their employees stay in better shape. Because an effective wellness plan only works if implemented from the top down.