Health Wellness Newsletters

In this recession economy and out-of-control worker debt, many businesss who don’t have automatic 401(k) enrollment have seen participation drop.

Here’s how one small business in Arizona cleverly tied 401(k) education to employees’ other financial concerns. Rather than simply holding its usual 401(k) open enrollment education meeting, it held a “financial health fair.”

Stressed 401(k) importance

How it worked -  on the same day the company’s 401(k) vendor sent a plan rep to discuss the retirement plan, the business also arranged for a certified financial planner to talk to workers.

The financial planner went first. She began the session by pointing out that she wasn’t affiliated in any way with the management of the 401(k) plan.

That was vital both for the company’s legal protection under ERISA and for building trust with workers. She then discussed why it’s vital for individuals  to take part in the 401(k) plan, and offered attendees budgeting tips and basic strategies for cutting their debt.

The financial planner’s talk cut to the heart of several major issues that hurt both staff member salary satisfaction and 401(k) participation. Numerous studies show that the No. 1 reason many individuals  avoid 401(k) participation is that they feel they can’t sacrifice any part of their entire paycheck and still survive financially.

The second part of the session was the standard 401(k) enrollment presentation from the provider. End result - Staff Members were more attentive and there was a noticeable uptick in both new 401(k) enrollments and salary contributions from already-enrolled workers.

The event was such a smash that the corporation plans to make the Financial Wellness Fair a regular part of 401(k) enrollment. While the financial planning advice is generic (the corporation may add third-party personal finance planning as a voluntary benefit in the future), it’s also timely.

The 401(k) signup appeal comes while the financial planning tips are still fresh in employees’ minds and they’re excited to do something to help themselves.

Studies show that roughly five percent of personnel drive about 80 percent of your health benefit costs.

No shocker here -  Smokers and obese workers are the highest risk group for developing the sorts of chronic medical problems that send costs through the roof.

A small, but rapidly growing number of companys are taking desperate measures to avoid the costs associated with these personnel.  The step may be broken down into three levels of aggressiveness and potential risk/reward.

Level one -  the company installs a health promotion program in which non-use of tobacco workforce and those who commit to maintaining a healthy weight receive financial incentives that lower their share of monthly insurance premiums.

Level two -  the company disqualifies job candidates who smoke or are significantly overweight from hiring consideration. Alternatively, some firms require new hires to undergo a health risk appraisal as a condition of being hired.

Level three -  the corporation docks pay or fires staff who fail to control their lifestyle-related health risks. Example -  A company called Clarian Health has sent notifications to staff that beginning in 2009, staff who smoke or chew tobacco are going to be charged $5 per paycheck.

Are these strategies legal? at level one, the answer is a licensed yes. HIPAAs non-discrimination rules permit such incentives under a few conditions.

Wellness incentives walk a fine line as for health insurance portability and accountability act (HIPAA)s non-discrimination rules. It is legal to reward staff members for wellness participation but its illegal to punish those who fail to improve their health.

Example - If an employee follows a weight-loss program in good faith but fails to lose weight, you can’t withhold the incentive. Likewise, if an employee fails repeated tries to quit tobacco use, you’re still legally obligated to give them another shot next year.

Additionally keep in mindthat, by law, the size of the reward or penalty under your health promotion program cant exceed 20% of the total cost of coverage.

The other two are still largely uncharted waters in the courts. Businesss considering these policies should proceed with extreme caution. Keep in mind that the question of “can you do it” (i.e., is it legal?) is different from “should you do it?” (i.e., is it good business?)

Here is more evidence that health promotion programs pay for themselves -

Over the last two years, one organization in five has seen significant betterment in employees’ health status â.” and began to stabilize their costs â.” according to one study.

Among firms noting improvement, almost two-thirds (64%) feature health promotion programs offering incentives for healthier life choices.

Here are three twists on traditional incentives that’re getting good results -

1. Health coach outreach

Many firms require employees to work with an individual wellness coach in order to get a discount on monthly premiums or earn cash incentives.

The most common set-up -  on a regular basis, the worker must set up appointments with and report to (either over the phone or face to face) his or her wellness Coach.

But experience has shown there’s often a high dropout rate.

Individuals  get off to a excellent start â.” and they’re enthusiastic about the incentive â.” but once they realize there’s some effort involved, they lose interest.

The good news -  Firms have found a simple-to-arrange alternative that keeps individuals  on the right track. Rather than requiring workforce to contact the wellness Coach, a growing number of companies require participants to take calls from the wellness Coach.

Potential result -  Fewer folks fall off the wagon. There’s no outreach effort involved, and the health coach keeps people  accountable.

2. Nutritional education/therapy

A newer â.” and cost-effective â.” feature in the battle against worker obesity -  offering an worker nutrition-education program administered by a specialist nutritionist.

Just 11% of businesses â.” 18%  of big companys and 7.5% of small to medium ones â.” have such wellness programs, as reported by SHRM’s most recent benefits survey.

Even fewer offer (via their EAPs) nutritional therapy for individuals  with eating disorders. But available data on these health promotion programs shows they usually pay for themselves.

The stronger the firm’s emphasis on teaching healthy consuming, the faster and more dramatic the reduction in major health claims.

Common plan features -  lunch and learns featuring healthy food choices, giving out nutrition-linked gift cards and extending obesity-prevention incentives to people ’s family members.

3. Assertive tobacco use cessation

A small, but quickly growing number of corporations are taking more aggressive measures to avoid the costs associated with employees who smoke.

The step may be broken down into three levels of aggressiveness and potential risk/reward.

Level one -  the employer installs a wellness program in which non-use of tobacco staff members and those who commit to maintaining a healthful weight receive financial incentives that lower their share of monthly premiums.

Level two -  the business disqualifies job candidates who smoke from hiring consideration. Alternatively, some firms require health risks assessments as a condition of being hired.

Level three -  the employer docks pay or fires staff who fail to control their lifestyle-related health risks.

Example -  Clarian Health made news last fall for sending notice to staff members that as of Jan. 1,  2009, people  who smoke or chew tobacco would start be charged $5 per paycheck.

Are these strategies legal? at level one, the answer is a licensed yes. health insurance portability and accountability act (HIPAA)s non-discrimination rules permit such incentives within limits.

In a nutshell, it’s legal to reward staff who quit smoking but illegal to punish those who attempt and fail. If an staff member tries but fails to quit smoking, you’re still legally obligated to give them another shot next year.

Additionally rememberthat, by law, the size of the reward or penalty under your wellness program can’t exceed 20 percent of the sum cost of coverage.

At levels two and three, it remains to be seen if such policies would hold up in court. Proceed with caution.

A few years ago, organization wellness fairs were all the rage. Now they’re making a comeback, with a slight twist.

In the past, the fairs often better served the vendor(s) who came on-site than the needs of the hosting organization or their employees. More lately, companies have refined the planning of the events to serve specifically to launch or promote a health promotion program.

To be successful, the events need to serve two purposes - increaseing employee education and building their enthusiasm to participate in the wellness program.

To make certain you and your staff get the most out of a health fair, it assists to be conscious of the plusses and minuses - and some little touches that can mean the difference between a so-so event and a hit.

Health Fairs -  Double-edged sword

On the plus side, personnel received easy-to-grasp information on key wellness topics such as illness detection, symptom control and smarter medication practices. They also receive important services like free blood-pressure screenings.

On the down side, some professionals said the more newfangled events were more like “disease fairs” than “wellness fairs.” In other words, the tone was little too somber and staff weren’t in particular tuned in because they weren’t enjoying themselves.

Health Promotion program advisor Dr. Ron Goetzel believes that the savviest firms strike a balance in their wellness fairs. Stick with the screenings, but also feature exhibitors who offer “lighter,” more enjoyable services. Examples -

o  A booth from a local health-food store

o  A chair-massage station

o  elder-care info from the AARP, or

o  A “complimentary medicine” info booth (e.g.,a chiropractor or an acupuncturist).

Offering incentives

In many cases, staff still need an incentive to attend the fair and get the desired screenings, in addition to doing the fun stuff. Some real-life wellness programs that’ve worked -

o  A contest offering prizes to workers who visit every station

o  quizzes and prizes based on info from different vendors’ literature

o  flex-scheduling or time-off incentives for getting screened (e.g., a comp day or an extra afternoon off), and

o  cash incentives (as little as $20 and as much as $100) to people  who voluntarily participate in various screenings.

The organizations with the most cost-efficient medical plans are the ones that streamline the services workers receive for both their physical and psychological health.

As a long-term goal, having your general health plan, employee assistance program (EAP) and health promotion program communicating regularly with one another about employees’ treatments is the single best way to reduce redundant or contradictory treatments, eliminate unnecessary claims and improve the quality of the plans for which you pay.

Let’s look at the relationship between your health promotion program and your employee assistance program (EAP) to illustrate the importance of attacking health costs cross a wide front.

You can begin a health promotion program with a health risk assessment and then, if appropriate, roll out a smoking cessation program or a weight loss program.

But ultimately you want to make certain that your wellness provider works joined with your employee assistance program provider.

Here’s why -  It’s very common for an worker to contact the employee assistance program (EAP) because the person feels depressed about his or her weight. What you want is for the employee assistance program (EAP) provider to treat the employee’s depression and behavioral issues, plus you want the employee assistance program (EAP) to refer the worker to the health promotion program to deal with the root cause of the problem - obesity.

The same thing accompanies the relationship your health promotion program and your workers’ comp provider, STD and LTD providers, rehab individuals , and/or disease managers. You want all them talking to - and sharing data with - each other. If they’re not, it’s costing you money.

In general, the corporations who achieve the greatest cost savings through their health promotion programs are the ones who overlap wellness with behavioral and occupational health issues.