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HealthAdvocate

Workplace Health

Your Boss Wants You Slim, Healthy and Ready to Keep Medical Costs Down


Author:

Eric Sabo

Medically Reviewed On: October 27, 2005

How Good At Cutting Costs?
The key reason for all these efforts is to cut costs. Obesity-related diseases, such as diabetes or hypertension, account for the bulk of health insurance benefits. Research suggests that employees who take part in company wellness programs spend far less on medical care than those who sit idly by at work.

Many CEO's are beginning to take notice. According to a 2005 survey by Hewitt Associates, the number of companies offering disease management and wellness programs jumped 10 percent from the year before.

"This is growing," says Dr. Ron Goetzel of the MEDSTAT Group, a research organization that studies workplace health.

While no one faults companies for promoting good habits, this new emphasis on preventative care has raised concerns that companies will hire or reward workers based on their ability to stay healthy. Such company wellness programs are voluntary, but studies have found that overweight people tend to earn less and get passed over for promotions.

In the memo intended for the Wal-Mart board of directors, Susan Chambers, the vice president in charge of benefits, said that promoting physical activity "would also dissuade unhealthy people from coming to work at Wal-Mart."

Moreover, these wellness measures are not expected to hold down medical costs on their own. Despite the years that General Motors and Union members worked to promote better health at auto plants, the company recently announced that employees will have to spend nearly four times as much to help cover their healthcare expenses.

Still, many companies are encouraged by the progress they've made so far.

"We've had a 10 percent reduction in health costs from lifestyle changes," says Schaefer of Union pacific.

For Gibson, the diesel mechanic who now weighs 250 pounds and is still dropping, the company has provided him more than a paycheck.

"It's given me more confidence," he says of losing weight. "I feel better about myself."

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