The Perfect Match – Employee Wellness and High Deductible Health Plans
Consumerism and healthier lifestyle choices are important in lobbying for more affordable health care. The prolonged economic downturn has forced employers to take a close look at the rising cost of health care. Employers are instituting strategies that encourage employees to take responsibility for their own health.
An employee wellness program coupled with a high-deductible health plan, backed by a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA), offer a solution. These health plans also referred to as Consumer Driven Health Plans. The underlying principle is to engage the employee in personal health care.
Employee wellness programs encourage healthy living through health education and support. Wellness program participants gain access to the tools and resources needed to make positive change. Employers that support the well-being of their workforce create a healthier, more productive and sustainable work environment.
Additional benefits of a worksite wellness program include:
- recruitment and retention of healthy employees
- decreased illness and injury
- reduced absenteeism rates
- improved employee relations and morale
- increased productivity
- overall reduction in health care cost
The health care spending account (i.e.,HSA, HRA) is used to pay for qualified medical expenses both covered and not covered under the insurance plan. Employees can maintain health care benefits and continue to access their providers. The health plan allows employees to determine the best use of their benefit dollars and decide what care and treatment to receive. A more economical approach to the expenditure of health care dollars will develop. The employer benefits from a significant premium reduction. Savings can be applied to fund wellness programs which will lead to a greater return in the long term – and have net savings.
Numerous health plan options are available and there are creative ways to design an effective wellness program. The overall goal of integrating wellness and a high deductible plan, supported by an HSA or HRA, is to save money on health care cost and promote a healthier environment and attitude.
Contact Jennessa Bissonnette at Workforce Wellness for more information at 800-544-8434 or email jbissonnette@slgl.com.
The Carrot or the Stick?
In response to the rising costs of providing health care benefits, employers have looked for ways to share costs with their employees. As a result, employees now realize the importance of being healthy. Companies recognize the need to promote employee health and have begun to implement workplace wellness programs. The goal is for employees to adopt healthier lifestyles and thereby, reduce health care costs.
The key to a successful wellness program is to engage as many participants as possible. As programs emerge, the question becomes, which approach is most effective at inspiring behavior change; the carrot or stick?
Economic incentives can increase participation and prompt healthy behavior change. In order for incentives to work, they need to be designed and administered effectively. They need to be significant enough to promote habit change and designed to be fair, convenient and realistic.
Voluntary, incentive-based programs produce positive results. The support from management along with an opportunity for employees to participate in the decision-making process benefits the employer and the employee.
Mandatory participation is not recommended. Studies show that mandatory participation may result in resentment and retaliation, primarily in the form of increased absence and reduced productivity. Penalties or disincentives for a lack of participation can also lead to charges of discrimination and violation of personal health information.
The employer can provide the tools and resources to educate and identify health risk factors. The motivation to change those unhealthy lifestyles habits is derived from encouragement, support and incentive for wellness participation.
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