Working on wellness programs.

• Author: Prigmore, Donna
• Position: Alaska health wellness programs

Health costs, skyrocketing 10 percent to 20 percent annually, are one of the key concerns for managers. Over the past seven years, the average annual cost of health insurance per employee doubled from $1,645 in 1984 to $3,605 in 1991. These costs drive profits down and jeopardize corporate survival.

Given the current health care crisis, it's not surprising that companies in Alaska are looking for effective ways to contain spiraling health costs. According to Eric Deeg of Rollins Hudig Hall, an Anchorage-based insurance brokerage firm, typical methods, such as cost sharing and utilization review, do not reduce the number and type of employee medical claims.

Deeg says, "The only way to control costs is to make decisions on what medical claims to cover and start focusing on prevention and early detection programs (i.e., wellness programs) that yield long-term savings."

Wellness programs are fast becoming powerful cost-containment strategies. With the knowledge from the U.S. Surgeon General's office that over 50 percent of all deaths and illnesses are preventable and related to lifestyle, Alaska employers are seeking to create healthier employees who utilize the health care system less often and, more importantly, utilize it more wisely and effectively.

The Expense of Unhealthy Employees

Employers are beginning to realize that the cost of treating an illness far exceeds the cost of preventing one. One coronary bypass operation costs about $32,000 and will taint any organization's health care budget, especially those that are self-insured. Unhealthy employees with negative lifestyle habits drain health care dollars.

Results of a four-year study on 15,000 Control Data employees revealed that health care costs were:

* 18 percent higher for employees who smoked;

* 14 percent higher for sedentary employees;

* 13 percent higher for employees who did not wear seat belts;

* 11 percent higher for obese employees;

* 11 percent higher for employees with high blood pressure.

Data confirming the financial consequences associated with unhealthy workers has given worksite health promotion a lot of attention. The traditional, reactionary health care approach is being replaced by a more proactive system. This paradigm shift is long overdue. In the 1980s, business spent 96 percent of health care dollars on illness treatment and a mere 4 percent on prevention.

Wellness Programs -- A Proactive Approach

Employee wellness programs involve early detection screenings...