Health programs help offset costs

More employers are offering health promotion programs in an effort to contain rising health care costs and maintain employees' health coverage, according to a new study by global management consulting firm Hewitt Associates. Ninety-three percent of U.S. companies now offer some kind of health promotion program, compared to 88 percent in 1994.

"The recent double-digit rise in health care costs have caused many employers to increase their emphasis on health promotion and health management programs," said Camille Haltom, a health care consultant with Hewitt Associates, in a press release. "It's a way to control health care costs and enhance the health and productivity of employees over the long run."

According to the survey, health promotion initiatives that a growing number of companies are offering include education, financial incentives and disincentives, and health-risk appraisals.

Seventy-two percent of companies now offer employees some kind of education or training, up 6 percentage points since 1994.

Financial incentive and disincentive programs continue to grow in popularity, with 40 percent of companies offering them, compared to 29 percent in 1994. The most common incentives companies offer are gifts or monetary awards for employees who participate in health appraisals or screenings.

Examples of disincentives include employers charging an employee a higher medical or life insurance premium if he is a smoker, or giving an employee a lower medical benefit payout if she was not wearing a safety belt when involved in a car accident.

Twenty-seven percent of companies administer health risk appraisals as a way to analyze an employee's health history and promote early detection of preventable health conditions. These appraisals make employees more aware of behaviors they should change and sometimes provide suggestions for modifying lifestyles to lessen the risk of health problems.

Health screenings also continue to grow in popularity. Eighty-one percent of employers indicate they now use screenings, compared to 78 percent in 1997. Most administer screenings for high blood pressure or cholesterol via on-site health fairs, mobile units or through their health plans.

More than three-quarters of corporations 76 percent offer health promotion programs such as flu vaccinations, well-baby/child care and prenatal care, compared to 71 percent in 1996.

"We also are finding, that employers are increasingly using technology, such as the Internet or intranet, to deliver health education initiatives," Haltom said. "The technology provides convenient access for participants, can potentially increase participation in health management and is cost-effective for employers when compared with traditional approaches."

Hewitt's survey found that fewer employers (37 percent) are now offering classroom-based initiatives, compared to 54 percent in 1995.

Hewitt's study, which surveyed 1,020 companies, was commissioned to research the prevalence of health promotion programs among U.S. corporations. Hewitt Associates LLC is a global management consulting firm specializing in human resource solutions.