The Carolinas HealthCare System has introduced a wellness plan that will pay employees to enhance their health and fitness.
Officials at the Charlotte, N.C.-based system say it's the first program of its kind among large healthcare providers.
Employees will have options to save $200, $400 or $600 annually based on meeting up to 10 wellness criteria. The first incentive credits will be available in the company's 2010 health plan.
The program, part of a Web-based initiative powered by WebMD, is the newest in a series of preventive health and lifestyle enhancement initiatives known collectively as LiveWELL Carolinas!
"Investing in preventive health is common sense," said CHS Chief Executive Officer Michael C. Tarwater. "You get a healthier, more productive employee in the short run. In the long run a healthier employee makes for a more effective organization."
More than 25,000 benefits-eligible employees were entitled to register for the program, which is available at eight hospitals, two nursing homes and numerous physician practices in greater Charlotte.
Employees will qualify for medical premium credits by doing such things as exercising on a regular schedule, avoiding tobacco products, using seatbelts, completing confidential health questionnaires and maintaining a lower body mass index.
Larry Chapman, senior vice president for WebMD Health Services, said concerns about a return on investment (ROI) have long been a deterrent to work-based wellness initiatives. More than 60 peer-reviewed studies have validated the ROI that can be realized from preventive health. The most common ratio, he said, is a savings of $2.50 to $3 for every dollar expended.
"Programs of this scope require a significant investment, and the logistics of management can be daunting in a large healthcare system," Chapman said. "I have no doubt that the business community – not only in North Carolina but nationwide – will be watching CHS very closely."
"Escalating costs are draining wallets, sapping benefit plans and stressing government budgets at all levels," Tarwater said. "We must reduce avoidable utilization of healthcare services. I believe this will happen if and when we have a significantly healthier population."