Newsletter Issue 2

Wellness = 600% ROI

According to a 2007 study published by PricewaterhouseCoopers, "Medical Cost Trends for 2007," there has been a dramatic increase in the return on investments into wellness within the workplace. The new data reports that for every dollar spent on wellness, you can expect to receive an average return of $6. This is up from prior levels of a $3 return. This should motivate businesses to really get on board with the "wellness revolution".

Long-term success of the Midwest Public Risk pool could hinge upon wellness and whether entities take a proactive approach to the health care crisis. Each year health care program costs increase by approximately 10–14%.

With that in mind, if there is a 6:1 return on investment with wellness and MPR members spend the full designated wellness credit, this pool would save $900,000 per year. Instead of a 10% annual increase, members would be looking at annual reduction in rates.

Qualified Worksite Wellness programs are producing these results today. There are caveats, however! Members need to be involved at all levels of employment. There must be an obvious cultural shift. The most effective programs incorporate contingent benefit plan options, annual Health Risk Appraisals, biometrics, and highly-promoted incentives.

The first step is education. Please join us in moving our workforce toward healthier lifestyles. It's a commitment worth the effort and a goal we can achieve together.

Here in the Tri-Lakes area, wellness programs are already paying dividends to area employers. The City of Hollister, with the assistance of Connell's Devra Gower, implemented a wellness assessment program, along with weight reduction and walking activities. That effort initially held their renewal premium increases to 12%, which was considered to be a fair increase in comparison to other entities experiencing 20%-plus increases. However, due to the vitality of their wellness program and proven results, Devra was able to appeal that increase to the health carrier and thereby reduce it a further 3%. This proactive approach by Devra has saved the city an additional $10,000 and her efforts were honored by the city at a recent council meeting.

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