What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Assists Reduce Costs

• A 2003 investigation of one large United States  corporation found that simply helping employees 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 healthy lifestyles.

Health care expenses decreased $224 per worker 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 employees showed that nonexercising employees claimed at least $100 more per year in health-care costs than exercisers.

The research study  also announced that obese, sedentary staff members who began exercising at least twice a week lowered 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 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 employer 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 worker, and 19 percent spent between $6-10 per worker.                  

The Wellness Council of America estimates the cost per worker 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