What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Helps Reduce Costs

• A 2003 investigation of one big USA  employer found that simply helping 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.

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

• A 2004 University of Michigan study of 23,500 General Motors workers showed that nonexercising workers claimed at least $100 more per year in health-care costs than exercisers.

The study  also reported that obese, sedentary staff members who began exercising at least twice a week decreased their costs by an average 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 paid employees $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 as well as money. Some larger organizations may spend 20 hours per week for three to six months preparing all the steps prior to launching a Wellness Program.                  

Company Costs                  

Monetary costs can fluctuate widely, depending on whether the corporation pays all costs, the workers pay all costs, or the costs are shared.                  

A 1992 study indicated that 28 percent of corporations spent $5 or less per staff member, and 19 percent spent between $6-10 per staff member.                  

The Wellness Council of America estimates the cost per staff member 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 several activities       $16 – $35            

A fairly robust program             $36 – $75      

A very comprehensive, effective program       $76 – $112