Do wellness programs really reduce health insurance costs for dental practices?
As group health insurance costs continue to rise, one strategy dental practices are evaluating is a formal wellness program. A recent Wells Fargo Insurance survey found 51% of business owners are looking to add or increase wellness initiatives to improve the health of their workforce. Employees appear to be on board as well. According to a recent HealthMine Survey, 75% of employees want their company to offer health and wellness incentives. So, can wellness programs really save dental practices money? The answer may not be so cut and dry.
Widespread adoption
In the last few years, wellness programs have become a popular employer benefit that are offered along with reimbursement programs, such as HRAs. Sixty percent of U.S. companies are now offering some type of wellness initiative, up from just one third of employers in 2009. According to a new study from nonprofit think tank Rand Corp, wellness programs are now a $6 billion a year industry.
The idea behind wellness programs, and the reason for such mass adoption, is they lower or help control health care costs for employers. Employees receive preventive care they need, stay fit and active, and receive information and resources to reduce expensive medical claims. A healthy workforce means reduced absenteeism and turnover due to health.
Do they actually work?
According to the new study by Rand Corp, the answer is yes and no. The study examined nearly 600,000 employees at seven employers and showed that lifestyle wellness programs are having little immediate effects on the amount employers are spending on health insurance costs. On the flip side, wellness programs that focused on disease management are seeing short term results.
To summarize:
• Lifestyle management programs, those that encourage healthy eating, tobacco cessation, and exercise, see benefits realized in the longer term.
• Disease management programs, those that provide intervention for diseases such as heart disease, diabetes, and emphysema, see benefits realized in the shorter term.
Lessons for dental practices
What lessons can dental practices take away about wellness programs and controlling costs? As the report suggestions, there are three key takeaways:
1. Clearly define wellness program goals—Wellness programs are not always about decreasing premium costs. They can also be about improving workforce health and creating a culture of health.
2. Pay attention to cost—Be strategic with company dollars and, when possible, measure return on investment.
3. Execute consistently—The study found employers with a strong commitment to the program had longer lasting results.
Conclusion
So, do wellness programs work? Yes, they can. As the recent study suggests, dental practices can see the highest return on investment by clearly defining the goals of the program, executing the program consistently, and paying close attention to their health insurance costs.
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To learn more about wellness programs and other benefits, download our whitepaper “A Guide to Lovable Employee Health Benefits.” Wise-up Wednesday is presented bi-monthly from the experts at Zane Benefits. One Wednesday a month features Human Resource issues, and the other Wednesday discusses health benefits.
