What Will a Wellness Program Cost?

The Facts Speak for Themselves – Wellness Helps Reduce Costs

• A 2003 evaluation of one large U.S.  corporation found that simply helping staff members control their blood pressure (BP) alone can save $547 per individuals per year.

• Johnson and Johnson claims to have saved $38 million in health-care costs for its workers between 1995 and 1999 by promoting healthful lifestyles.

Health expenses lowered $224 per staff member per year (averaged over four years), and this rate improved over time. the business found most benefits in the third and fourth years after program initiation.

• A 2004 University of Michigan study of 23,500 General Motors staff members showed that nonexercising staff members claimed at least $100 more per year in health-care costs than exercisers.

The study  also reported that obese, sedentary staff members who began exercising at least twice a week reduced their costs by an typical of $500 a year.

• the Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that paid workers $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays per year, producing a cost savings of $15.60 per program dollar spent.

Staff Time                  

Building a successful Wellness Program requires staff time as well as money. Some larger organizations may spend 20 hours per week for three to six months preparing all the steps prior to launching a Wellness Program.                  

Business Costs                  

Monetary costs can fluctuate commonly, depending on whether the business pays all costs, the employees pay all costs, or the costs are shared.                  

A 1992 study indicated that 28 percent of companies spent $5 or less per staff member, and 19 percent spent between $6-10 per staff member.                  

The Wellness Council of America estimates the cost per staff member to be between $100 and $150 per year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of programs include –                   

Program Type                  

A minimal (largely paper) program          $1 – $7         

A moderate program                   

A medium program with a few activities       $16 – $35            

A fairly extensive program             $36 – $75      

A very extensive, effective program       $76 – $112