The Facts Speak for Themselves – Wellness Helps Reduce Costs

• A 2003 analysis of one big USA corporation found that simply helping staff members control their blood pressure alone can save $547 per individuals annually.

• Johnson and Johnson claims to have saved $38 million in health care costs for its staff between 1995 and 1999 by promoting healthful life choices.

Medical expenditures lowered $224 per staff member each year (averaged over four years), and this rate improved over time.  The organization found most benefits in the third and fourth years after wellness program initiation.

• A 2004 Univ. of Michigan study of 23,500 General Motors workforce showed that nonexercising workforce claimed at least $100 more each year in healthcare costs than exercisers.

The study  also stated that obese, sedentary employees who began exercising at least twice a week reduced their costs by an typical of $500 a year.

• The Washoe County School District in Nevada estimated that, in a single year, it spent $300,000 on direct costs associated with obesity and $1 million for gastric-bypass surgeries. It instituted a weight-loss program that paid workers $10 per pound lost, up to 25 pounds.

Program participants missed three fewer workdays per year, producing a cost savings of $15.60 per program dollar spent.

Staff Time
Building a successful Wellness Program requires staff time in addition to money. Some larger companies may spend 20 hours per week for three to six months preparing all the steps before launching a Wellness Program.
Company Costs
Monetary costs can fluctuate commonly, depending on whether the corporation compensates all costs, the workforce pay all costs, or the costs are shared.
A 1992 study indicated that 28% of companies spent $5 or less per worker, and 19% spent between $6-10 per worker.
The Health Promotion Council of America estimates the cost per employee to be between $100 and $150 per year for an effective wellness program that produces a return on investment of $300 to $450. A sample expenditure for various levels of wellness programs include –
Program Type
A minimal (largely paper) wellness program          $1 – $7         

A moderate wellness program
A medium health promotion program with several activities       $16 – $35            

A fairly robust wellness program             $36 – $75      

A very extensive, effective wellness program       $76 – $112