Pro-health programs can cut costs

It could be a seminar on the dangers of high cholesterol. In some cases, it could be asking employees who continue unhealthy habits, such as smoking, to pay a greater share of their health care costs. Whatever the example, more companies are offering these types of health promotion programs as a way to maintain their employees' health and contain health care costs.

According to a recent survey of more than 1,000 employers by the human resources consulting firm of Hewitt Associates, 91 percent of U.S. companies now offer some kind of health promotion program, compared with 64 percent in 1992 and 89 percent in 1996.

"More companies are using health promotion programs to help their employees detect health problems earlier so steps can be taken to better manage conditions before they require costly treatment," said Camille Haltom, a health care consultant with Hewitt Associates.

"The end result is the employee benefits by hopefully improving his/her quality of life, and the employer benefits by better controlling health care costs over the long term," she added.

While Hewitt's study shows increasing numbers of companies in every region of the country are utilizing health promotion programs, it indicates some interesting differences among industries. Those industries that typically employ an older, longer-service work force, such as the automotive industry, are more likely to use health promotion programs than industries that generally employ a younger work force with higher turnover, such as the retail industry.

"More companies, particularly those with a longer-service work force, have learned that their employees' unhealthy habits can lead to huge health care costs over the long term," Haltom said. "By using health initiatives, companies can help their employees before they get sick and better contain those large costs."

Overall, Hewitt's study reveals increasing numbers of companies are using nearly all types of health promotion initiatives.

?76 percent of companies said they offered employees some kind of education or training in 1997. Their programs ranged from seminars and workshops to counseling on lifestyle habits that contribute to chronic or acute conditions.

?Financial incentive or disincentive programs grew in popularity, with 39 percent of companies offering them last year compared with 14 percent in 1992.

The most common incentives companies offered were gifts or monetary awards to employees who participated in health appraisals or screenings. The most common disincentive was a smoker surcharge (charging employees who smoke higher medical and life insurance premiums).

?More than a quarter of companies (27 percent) administered health-risk appraisals (questionnaires) last year as a way to analyze an employee's health history and promote early detection of preventable health conditions. Most employers indicated they used appraisals periodically (39 percent) or annually (38 percent).

?Health screenings also were on the rise among employers. Seventy-eight percent indicated they used screenings in 1997 vs. 66 percent in 1992. Most administered 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 offered employees special health promotion programs such as flu vaccinations, well-baby/well-child care, and prenatal care in 1997, compared with 71 percent in 1996.

Hewitt's study, which surveyed 1,020 companies, was commissioned to research the prevalence of health promotion programs among U.S. corporations.

Copies of the study, Health Promotion/Managed Health Provided by Major U.S. Employers in 1997, are available for $50 from the Publications Desk at Hewitt Associates, 847-295-5000.

Hewitt Associates LLC is a global management consulting firm specializing in human resource solutions.

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