The business case for wellness programs in public employee health plans.

• Position: Brief article

Evidence indicates that wellness programs are successful in improving the health status of employees and in slowing healthcare costs, according to a brief by the Center for State and Local Government Excellence. The brief, titled Business Case for Wellness Programs in Public Employee Health Plans, examines the growth of wellness plans and documents the health and financial benefits they have produced. Other findings include that financial incentives encourage employees and retirees to change behaviors; few jurisdictions have conducted systematic assessments of their plans; retirees can benefit from wellness programs, but might require additional considerations; and wellness programs are likely to yield higher dividends for public employers, given the longer career pattern of public employees.

Medical care cost inflation continues to exceed the general rate of price inflation--between 1999 and 2011, premiums for employer-provided health insurance rose by 160 percent, while general inflation increased only 38 percent (worker earnings increased 50 percent)...