Look Around HR

…So says work done by a number of researchers who looked at eleven studies that were published between 1994 and 2006. The report is featured on WebMD.

The programs varied in that some offered one-on-one counseling, while some offered a health assessment, and others may have featured an on-site exercise program. Still, others may have featured a combination of those benefits while some may have offered something completely different.

The programs that seemed to work the best were ones that included face-to-face meetings at least once a month. Something to consider if you are starting up a wellness program or are looking to tweak yours.

The studies showed that those who participated in these programs lost an average of 2-14 pounds. Not bad, although the effects on the bottom line is still not known. Separate research shows that “about” 6 percent of health care costs is associated with excess body weight.

As I have said before, I am a fan of wellness programs and think they are a win-win for both the employer and employee.

A recent PriceWaterhouseCoopers survey says that employer healthcare costs are set to rise 9.9 percent this year, and 9.6 percent in 2009; both rates are nearly double inflation, and will leave employers who sponsor health insurance plans with more hard choices.

Ways to combat the increased employer cost include raising the deductible, lowering the percentage the plan pays (co-insurance), raising the prescription drug co-pay or office co-pay. Employers will probably also have to raise the employee costs as well. None of these sound like very good, or very fun, ideas to me. But HR isn’t always fun and the easy decision isn’t always the best or right decision.

I think it may be years away before wellness programs are near universal, but that does not mean your company shouldn’t join the growing number of companies who take pro-active measures to keep their employees healthy and medical costs lower. Gym memberships, allowing employees to go for a walk on company time, staffing a nutritionist that can help employees eat healthier are just a couple of examples that companies should look at sooner than later.

The Conference Board recently released a bit of a shocking study in detailing the costs of obesity on employers heath care. Their conclusion- about $45 billion (with a B!) per year- because of the disease.

From Financial Week:

The report found obesity is associated with a 36% increase in health-care spending, more than results from smoking or alcoholism. Since 34% of American adults fit the definition of obesity, cutting costs associated with the condition will challenge companies for years to come.

That is right, obesity costs more than tobacco or alcohol. I know a number of companies, especially large companies, have begun to charge more for those who smoke, but the number is not as high for those who are overweight. I think part of that can be because some may be sympathetic to those who can’t lose weight, but not so much for those who chose to light up.

The study did say that many companies are starting to have wellness programs, which are a very good first step. It said about 40 percent are doing something right now, while 24 percent are working on implementing one shortly.

I think the way to go is to provide incentives for good health (as many companies are doing now). You set benchmarks and as they are met, lower the premium or lower the deductible. Being healthy is something both the employer and the employee should have an interest in.

Wal-Mart recently found themselves on the negative side of a PR war, once again. In this case, they attempted to collect over $400,000 that a former employee had won in a lawsuit following a traffic accident that left her in a nursing home with severe brain damage.

Wal-Mart, like many other places of employment, has a policy that allows them to recoup lawsuit winnings to pay for the health care expenses. And I should add that this policy is not that rare and exclusive to the world’s largest retailer.

From the WSJ:

Insurance experts say it is increasingly common for health plans to seek reimbursement for the medical expenses they paid for someone’s treatment if the person also collects damages in an injury suit. The practice, called “subrogation,” has increased since a 2006 Supreme Court ruling that eased it.

After this story made it across the newswires, Wal-Mart retracted on their policy in this case and decided not to go after the money. It will be interesting to see if there is any more fallout from this.