Between 1995 and 1999, medical care costs decreased by $225 per person.
|
Large
Company
|
| Name: |
Johnson
& Johnson |
| Location: |
New
Brunswick, New Jersey |
| Business: |
Health-care
products manufacturer |
| Employees: |
40,000
in the United States |
|
n 1995, Johnson & Johnson’s health and fitness group took a simple
step that catapulted participation in the company’s wellness program from 26
to 90 percent, says Patricia Flynn, vice president of Johnson & Johnson’s
health-care system. They offered every employee a $500 health-benefits credit in
exchange for completing an annual health-risk assessment before enrolling in the
plan.
The company had offered the assessment optionally for years as part of its
wellness program, but it was not until the incentive was attached that employees
flocked to it. "People think they are fit and might not want to bother with an
assessment," Flynn says. "This incentive got them to do it."
The assessment is completely confidential and is conducted by a third-party
administrator to ensure privacy--an early concern for employees who fear that
their information might be used in hiring or firing decisions, Flynn says. "The
information gathered is only shown in aggregate to management, while the
employees get individual reports on their risk status." Employees can also
check an optional box on the assessment to be contacted with information
regarding any disease they are at risk for. "So many of them checked the box
the first year, that tells me their privacy fears were alleviated," Flynn
adds.
In the past, the company offered incentives for participating in various
wellness programs, but now all of their incentive dollars go toward the risk
assessment, because they feel it brings the greatest return for the investment.
"We are confidant that once employees know what their risks are, then we can
make a positive impact on their health," says Jennifer Bruno, director of
business planning. Early studies conducted at the company showed that even those
employees who took the assessment but had no follow-up support through wellness
programs showed improvements in their health, she adds.
But for Johnson & Johnson, the assessment is just the beginning. The
aggregate data helps the health-care group choose the right wellness programs
for the exact needs of the population, Bruno says. The program developers aren’t
guessing at employees’ health interests or expecting them to know what
programs they will benefit from, she says. They use the hard data to guide their
wellness program choices. "We are making better use of our health-care
dollars, thanks to the assessment information."
For example, the initial assessment showed that the employees have three
areas of risk: high cholesterol, high blood pressure, and inactivity. The
company now regularly offers exercise and counseling programs to help employees
reduce cholesterol and blood pressure and manage weight. Bruno says there are
also subtle additions to the workplace environment that contribute to a healthy
culture, such as nutritious choices in the cafeteria, scales in all of the
bathrooms, and a non-smoking environment.
Since the assessment and resulting wellness programs were implemented, costs
have decreased significantly at Johnson & Johnson. Between 1995 and 1999,
medical-care costs decreased by $225 per person--due to lower administrative
and medical utilization--which amounts to an annual total savings of $8.5
million. For those employees who were discovered to be at high risk for a
disease and then reduced their risk, the savings is $390 per year, Bruno adds.
Preliminary studies show that this level of savings should continue every year.
"Because people are becoming aware of their risks earlier, they are taking
steps to improve their health," says Bruno, "which means they will use the
health-care system less."
Workforce, December 2002, pp. 76 -- Subscribe Now!
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