An Iowa senator wants to reframe the health care
debate so that it concentrates as much on preventing disease as it does on
paying for treating those who become ill.
Sen. Tom Harkin, D-Iowa, introduced legislation on Monday,
July 9, that would provide tax incentives to companies that establish
comprehensive wellness programs for their employees.
Under Harkin’s bill, the Healthy Workforce Act, companies
that spend $400 per employee on wellness would earn a tax credit of up to $200
per employee for the first 200 employees and $100 per employee for the remainder
of the payroll.
In order to qualify, a company would have to institute an
initiative that has three of the following components: a health awareness and
education program; a behavioral change program; an employee engagement
committee; and incentives for participation, such as a reduction in health
premiums.
“In America, we don’t have a health care
system, we have a sick care system,” Harkin said at a Capitol Hill press
conference. “Corporate America has the expertise, the
resources and the enlightened self-interest to change the way we approach health
care in this country.”
Unlike broader health care proposals that would likely have
to move through the legislative process as stand-alone bills, Harkin’s more
modest measure can take a low-key path.
For instance, it could be attached to a Senate tax bill later
this fall. Harkin also is trying to find backers in the House.
Harkin’s staff spent two years consulting with companies and
business and health groups before writing the bill, so the senator is confident
that the idea has wide support.
Dow Chemical Co. is one of the corporations on board.
Catherine Baase, global director of health services at Dow, said that 75 percent
of the company’s U.S. employees participate in at
least one health program each year. The health improvement efforts extend to
employees’ families and to retirees.
Dow has instituted a number of health programs, so it’s
impossible to determine the return on investment of any particular one, Baase
said. But Dow has kept its health care costs at or below the lowest projected
national increases since 2004.
“We’re seeing this going in the right direction,” she said.
“The sum total of what we’re doing seems to be working.”
Ron Davis, president of the American Medical Association,
highlighted specific savings that can be achieved from a focus on healthy
living.
He said that General Motors spends an average of $1,600 per
employee annually for health care, but that number jumps to $7,000 each year for
people who are severely overweight.
“Preventive medicine helps people live longer and better,” he
said.
And it can help companies save money, according to advocates.
They estimated that for every $1 spent on wellness, a company can save $3 to $4
in health care costs.
Wellness programs also provide intangible benefits, according
to a manager at a company that offers them.
Laura Barringer, a quality engineering supervisor at John
Deere's, Waterloo,
Iowa, facility takes advantage of Deere’s
on-site fitness center and will participate July 14 in the John Deere Waterloo 5K
race.
It’s “important to be healthy” not only for her employees but
also for her two sons and husband—each of whom has participated in Deere
wellness programs. Her boys have received immunizations and her husband
discovered and overcame a problem with high cholesterol without having to use
prescription medication.
Catching problems like high cholesterol before they require
more expensive treatments is what Harkin calls “getting upstream” in battling
health care costs.
Another important step is promoting healthy lifestyles among
children. Harkin, chairman of the Senate Agriculture Committee, has championed
programs that provide free fruits and vegetables to students and has fought
against placing vending machines in schools.
“These are the kind of things we need to think about in
health care reform, not just how you pay the bills,” he said.
He’s pessimistic that a major overhaul can be achieved before
2009.
“I don’t think anything will happen on health care reform
before the next election,” he said.
—Mark Schoeff
Jr.