Companies are increasingly implementing health and disease management programs for their employees, a survey of 242 major U.S. employers revealed.
The survey, conducted by ERISA Industry Committee, or ERIC, the National Association of Manufacturers, or NAM, and IncentOne and released at the America's Health Insurance Plan's Annual Meeting, also highlighted the use of incentives to motivate employees to take better care of their health.
Key findings include:
• Approximately three-fourths of the respondents offer health management programs to their employees.
• Almost half of the companies use incentives to drive participation.
• Approximately 70 percent of the companies offering incentives believe ROI must be greater than break-even to be acceptable.
• More than 25 percent of the companies are finding an ROI of 1 to 1 or better, while 10 percent are finding an ROI greater than 2 to 1.
Health management programs have evolved from a one-size-fits-all to a customized model that targets the needs of employees, said Katherine Capps, president of Health2 Resources. "Major U.S. employers are growing more sophisticated in offering incentives."
"This is the right thing to do," said Edwina Rogers, vice president of ERIC's health policy. "This survey is the first indication that the ROI is there."
Despite the difficulty of determining return on investment, employers want to demonstrate strict business sense and maintain employee participation. "We need to benchmark the information," Rogers said.
Michael Dermer, president and CEO of IncentOne, pointed out that incentives weren't on the radar screen two to three years ago. "All that has changed," he said.
Dermer said the healthcare industry should learn from the banking industry and offer thank you rewards for such things as going to the right doctor, taking the right medication.
"This is a simple, clear message: be healthier and be rewarded. This is a compelling business case," he said.