The Crisis – Current Trends
90% If current trends continue, 90% of the adult population in the U.S. will be overweight or obese by 2030, with associated health care cost skyrocketing to almost $960 billion dollars. Source: Baker Harrell, Active Life HQ.
Employers can no longer take the “wait & see” approach to wellness, they must be proactive.
Overweight and obese employees reduce your company’s bottom line. Absenteeism, presenteeism (showing up sick), lower productivity, higher insurance costs to both the employees and the company is the crisis we face. Obese men rack up an additional $1,152 a year in medical spending, hospitalizations and prescription drugs. Obese women account for an extra $3,613 a year. Source: Cawley and Chad Meyerhoefer of Lehigh University reported in Journal of Health Economics.
The U.S. health care reform law of 2010 allows employers to charge obese employees 30%-50% more for health insurance if they decline to participate in a qualified wellness program.
Source Rueters By Sharon Begley NEW YORK | Apr 30, 2012
We understand why a company’s leadership cannot always keep up with this important detail among all the other business demands. It’s tough on your health to be an executive:
- Long hours
- Sedentary work
- Stress and anxiety
- Employees, compliance, regulations
- Endless eating out and irregular meals
- No time to exercise
- A hectic travel schedule
In Texas alone, obesity costs businesses $9.5 billion – more than $4 billion for health care, $5 billion for lost productivity and absenteeism, and $321 million for disability.
Weight gain, insomnia, anxiety, fatigue, chronic body aches and chronic diseases such as heart disease, depression, and diabetes. All of these conditions make it harder to lead by example, and certainly make being successful more challenging.
ROI Even if you have a wellness program in place at your company, frequently it goes unused (or is under-used). Employees may feel they don’t have enough time, or perhaps they are not clear on the benefits of the program or how to take advantage of it. Your company is spending valuable time and money on a program that is ineffective and not producing results.
Of the programs that actually are working, the results are impressive:
- Companies supporting wellness have better financial outcomes and lower employee turnover
- For every $1 spent on wellness programs, more than $3 is returned in reduced medical costs and almost $3 in reduced absenteeism. Source: Health Affairs, 2010
- Health Care expenses are reduced and productivity among employees is increased
- Top talent is attracted to companies with a culture of wellness
Even beer companies are reaping the benefits! Coors Brewing Company’s wellness statistics show an average company medical insurance savings of $5.50 per $1 spent on fitness facilities and equipment. It also reports an 18% drop in absenteeism for employees participating in its corporate wellness program.