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Wellness programs that work

It used to be that an employee who had suffered a heart attack and then returned to his job was a walking liability for his company. His employer couldn't do much more than hope for the best--the best being that the recovering patient would stick to his diet, quit smoking, drink only in moderation, and not overdo it into another heart attack.

But for many companies, most notably Adolph Coors co. of Golden, Colo, such passivity is passe. According to Max Morton, manager of wellness programs for the brewing company, Coors has a special cardiac rehabilitation program that begins "as soon as the patient is out of intensive care" and includes a special rehabilitation addressing the employee's particular job demands.

Does rehab work? You'd better believe it does. Morton reports that the Coors cardiac program alone has saved the company $1,390,661 over a six-year period. (See box.)

And those figures are just for one segment of Coors' overall wellness program. According to Celia Shenemann of coors' corporate communications, "Our 'worst case' scenario for savings is $1.24 for each dollar spent on wellness, and our 'best case' scenario is $8.33 for each dollar spent. The worst case figures are based on 580 participants in the overall wellness program. In real life, we usually have three times that many participants, so our best case figures are almost certainly even higher."

No more pie in the sky

Clearly, wellness programs have graduated from pie-in-the-sky idealism to cold, hard facts and impressive figures. According to the Omaha-based Wellness Councils of America, concrete proof now exists that wellness programs pay off in lower health care costs, reduced absenteeism, increased productivity, and higher morale.

Just consider these WELCOA cases:

* Johnson & Johnson claims that its Live for Life wellness program saved the company $378 per employee last year by lowering absenteeism and slowing the rise in the company's health care expenses.

* General Electric, Cincinnati, found that regular exercisers were absent from work 45 percent fewer days than nonparticipants.

* The Scoular Grain Company, Omaha, opened a fitness center for its 600 employees, and as a result in 1989 the company saved more than $1 million in health care costs, or about $1,500 per employee.

* McDonnell Douglas' employee assistance program has returned more than $4 for every dollar spent helping employees recover from alcohol-related problems.

* Blue Cross and Blue Shielf of Indiana found that over a five-year period, benefit utilization savings of $519 per wellness program participant resulted in a benefit-to-cost ratio of 2.51 to 1.

According to WELCOA, today more than two-thirds of American businesses with 50 or more employees have some form of health promotion program. Smoking cessation, back care, stress management, and health risk appraisals are most popular.

B&H's own 1990 National Executive Poll revealed that 56 percent of employers who offer wellness programs do so because they think the benefit is worth the cost--not surprising when you consider that, according to WELCOA, 25 cents of every dollar of net profit for many employers goes to pay health benefits.

A Hewitt Associates survey of nearly 1,000 employers shows an increasing number of employers are trying to manage health care costs by intervening to keep employees healthy, instead of merely paying the costs when they fall ill.

Hewitt found that a large majority of surveyed employers--80 percent, in fact--sponsor at least one wellness program for employees. (See box, page 36.)

Wellness programs come in all shapes and sizes:

* Sentry Insurance, Stevens Point, Wisc., has had a wellness center since 1977. Programs include swimming lessons for employees' children, discount tickets to local ski areas, and an employee social club.

* IBM offers both child care and elder care referral services as well as its "A Plan for Life" health promotion program. The latter has been in place since 1981 in 250 IBM locations nationwide. IBM's program is typical of many in that it makes wide use of local resources such as the YMCA, the Red Cross, hospitals, and colleges. About 100,000 IBMers and their families enroll in various programs each year.

* Champion International Corporation, Stamford, Conn., a manufacturer of paper and wood products, has health promotion programs at all of its various locations. These programs include health assessments, health education, medical self-care, and exercise. All locations have either on-site health and fitness facilities, or offer subsidized membership in local Ys or health clubs. As is typical of such programs, participation is open to employees, retirees and spouses.

Mesa Petroleum's program

Company health promotion efforts generally range from simply offering smoking cessation classes or on-site exercise facilities, to programs as elaborate as that of Mesa Petroleum, Dallas.

Mesa Petroleum, which is one of the largest independent producers of oil and gas in the United States, estimates yearly savings of $1.6 million in health care costs for its 650 employees; Mesa's costs for health care were far lower than the national average and nearly three times lower than the energy industry norms.

In 1988, for example, Mesa's health care costs per employee were nearly 60 percent lower than the national average ($1,121 vs. $2,750) and 68 percent lower than the energy industry average ($1,121 vs. $3,560). Mesa, a self-insured provider, offers medical coverage free to all employees, with a nominal cost for dependent coverage--which features basic 80/20 coverage and an annual deductible of $100.

According to John Durkin, Mesa's manager of fitness, "We have a full health promotion program. We have a 30,000 sq. ft. wellness facility, and a corporate wellness program that makes optimal use of it. We have cholesterol screenings and health fairs on site, fitness evaluations, and guest lecturers. We get into different behavioral areas such as stress management, nutrition, weight loss, infant care, and proper use of the health care system." Mesa's wellness program is available to all employees, not just executives. The program is also available to spouses, and children over 12 years of age.

Mesa's fitness center features a full-court basketball gymnasium, four racquetball courts, an indoor running track, a multipurpose room and two weight rooms.

Durkin says that the company encourages proper eating habits by offering a complimentary juice bar plus fresh fruits and raw vegetables for employees at noontime in the Fitness Center. "In addition," he says, "we have a type of flex time during the work day. Employees can either come in a half hour earlier in the morning or leave a half hour later at night, and then take an hour and a half for lunch--as long as they use that half hour for exercise." Durkin reports that the company also has a four o'clock exercise class available to employees.

Significantly, Mesa puts its money where its goals are. According to Durkin, "An employee and his family can win up to $700 per year for exercising thirteen times a month and reaching certain goals. And I'm not talking about superfitness, just maintaining optimal health. We also give money back for healthy behaviors like not smoking."

Cash incentives include:

* $6 for each full month of total abstention from the use of tobacco products. This includes ex-smokers as well as those who never started. Verification is done through an "honor system," with employees signing forms certifying that they are smoke-free.

* $6 for each full month an employee participates in recommended exercise programs on-site at least three times a week.

* $30 semiannually or $60 annually for no absenteeism under the disability policy.

* $36 semiannually or $72 annually for having no employee major medical claims.

In 1989, Mesa paid more than $100,000 in wellness program cash awards, and considers the results well worth the money. In addition, employees have had another cash award of sorts: because of the company's lower health care costs, Mesa was able to reduce the dependent premium.

Outstanding in its fields

Since Mesa's many field employees lack access to the facilities at the main plant, the company has devised special programs for them. Durkin explains, "We provide field employees with health club memberships that we pay for as long as the employee uses them at least six times a month. Those employees can also qualify for the cash awards." Employee health club use is verified by the company, he notes.

As for other wellness activities, "we try to go to major field locations two or three times a year to do screenings," Durkin continues. "Also, we send out VCR tapes on stress management and other health-related topics. The field personnel often incorporate them into their regular safety meetings."