Incentives Stabilize Health Care Costs

    The scope of the program is broad, encompassing two fundamental areas: primary prevention of disease and secondary care for existing conditions. Along with health screenings, the primary-prevention techniques include an on-site fitness center, healthy-eating seminars, weight-management courses, and a cafeteria menu filled with heart-healthy choices, McCauley says. The company also offers employees access to a wellness hotline, through a third-party provider, that they can call for health-education information, such as how to start a low-fat diet or exercise program.

    The secondary-care options include a self-care book from the Mayo Clinic, which is mailed to every employee. It gives advice on recognizing and managing symptoms and determining when medical attention is necessary. Employees can also take advantage of an online self-care Web site that has information on hundreds of conditions.

    The program has been unusually successful, McCauley says, estimating that 69 percent of the population participates in the annual health-risk assessment. She attributes the program’s success to constant communication with employees about wellness offerings, education of employees about health risks, and consistent and immediate follow-up for specific health needs.

    "We are constantly looking at the risk profile of our population and targeting the needs of the highest-risk people," McCauley says. For example, those employees who show high levels of stress in their risk assessments are invited by a third-party vendor to participate in a six-week support program that provides them with phone counseling, stress-management materials, and videos. The first two years they offered that program, 29 percent of the entire population participated.

    The company also offers incentives through GiftCertificates.com to employees who take advantage of a certain number of programs. Each quarter, 10 to 12 wellness activities are offered. To win a $25 gift certificate, employees must participate in at least four of them.

    Since the incentive program was implemented, participation has skyrocketed, McCauley says. On average, 8 percent of the population qualifies for the gift certificate and an additional 20 percent takes part in at least one of the quarterly offerings. "That’s significant," McCauley says. "In the past, maybe 2 percent of the population took advantage of a wellness program."

    For example, "lunch and learn" seminars on health topics, which used to have fewer than 10 attendees, now commonly see 90 participants. "We had to move the seminars from a conference room to an auditorium to accommodate everyone." And even with the additional space, people are encouraged to register early to ensure that they get a seat.

    As a result of the increased participation and health awareness, Hoffmann-LaRoche has reduced levels of risk for many common diseases, including a 40 percent decrease in the risk for hypertension and high blood pressure, a 20 percent reduction in the risk for alcohol abuse, and a 16 percent reduction in the risk for illness related to poor eating habits.

    The financial payoff of all of this reduction in risk has been profound. While most companies have regularly experienced annual double-digit increases, Hoffmann-LaRoche’s health-care costs have remained stable for the past five years, McCauley says. She attributes the savings largely to the increase in health awareness. "We are absolutely convinced that if you educate employees about how to modify their health risks, you will avoid health-care costs."