{"id":26,"date":"2020-01-02T16:10:03","date_gmt":"2020-01-02T23:10:03","guid":{"rendered":"https:\/\/www.wellsteps.com\/blog\/?p=26"},"modified":"2026-02-26T10:03:35","modified_gmt":"2026-02-26T17:03:35","slug":"effective-workplace-health-programs","status":"publish","type":"post","link":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/","title":{"rendered":"How Effective Workplace Health Programs Reduce Health Care Costs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Why_should_employers_consider_implementing_employee_wellness_programs\" >Why should employers consider implementing employee wellness programs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#What_drivers_of_high_healthcare_costs_should_effective_workplace_health_programs_address\" >What drivers of high healthcare costs should effective workplace health programs address?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Unhealthy_Lifestyle_Behaviors\" >Unhealthy Lifestyle Behaviors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Salary_and_Drug_Costs\" >Salary and Drug Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Expensive_Technology_and_Procedures\" >Expensive Technology and Procedures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Fragmented_Care\" >Fragmented Care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Cost_Consideration\" >Cost Consideration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Fee_for_Service\" >Fee for Service<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Administrative_Costs\" >Administrative Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#End-of-life_Care\" >End-of-life Care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Provider_Consolidation\" >Provider Consolidation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#What_strategies_reduce_healthcare_costs_through_workplace_health_programs\" >What strategies reduce healthcare costs through workplace health programs?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Drop_Insurance\" >Drop Insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Change_CarriersNegotiate_Rates\" >Change Carriers\/Negotiate Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Self-Insure\" >Self-Insure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#High_Deductible_Plans\" >High Deductible Plans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#On-site_Clinics\" >On-site Clinics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Disease_Management_Strategies\" >Disease Management Strategies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Employee_Health_Programs\" >Employee Health Programs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#What_should_employers_do_next_to_implement_effective_workplace_health_programs\" >What should employers do next to implement effective workplace health programs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n\n<blockquote class=\"wp-block-quote executive-summary is-layout-flow wp-block-quote-is-layout-flow\" style=\"border-width:1px;padding-top:var(--wp--preset--spacing--20);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--20);padding-left:var(--wp--preset--spacing--50);font-size:17px\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p style=\"font-size:20px\"><strong>Executive Summary<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group executive-summary\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p style=\"font-size:18px\"><strong>What makes a workplace health program effective?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n<p class=\"executive-summary\" style=\"font-size:16px\">An effective workplace health program lowers healthcare costs by reducing preventable health risks and slowing the progression of chronic disease. These programs focus on measurable outcomes\u2014such as improved behaviors, lower risk factors, and sustained participation\u2014rather than one-time activities. When supported by leadership and guided by data, effective programs lead to fewer claims, lower medical spend over time, and a stronger return on investment.<\/p>\n<\/div><\/div>\n<\/blockquote>\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-should-employers-consider-implementing-employee-wellness-programs\"><span class=\"ez-toc-section\" id=\"Why_should_employers_consider_implementing_employee_wellness_programs\"><\/span>Why should employers consider implementing employee wellness programs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The health and chronic disease prevention centers of America are now America&#8217;s worksites. There&#8217;s not a single group in America that does more to promote health and improve the health behaviors of our population than worksites. This presents a challenge for workplaces to implement effective and cost efficient health programs.<\/p>\n\n\n\n<p>Our current medical system is a disease treatment system.&nbsp; The system is created it to treat, not prevent, arrest, or reverse health conditions. If you do have disease or existing health problems, the American system of medical care is very good, albeit extremely expensive.<\/p>\n\n\n\n<p>The main reason worksites are in the workplace health business is to improve employee health and prevent employees from having to use our expensive medical system. <\/p>\n\n\n\n<p>Employee wellness programs can impact employee health, but they have a limited direct impact on the high cost of health care because many drivers of high <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/benefits-of-wellness-lower-health-care-costs\/\">healthcare costs<\/a> are not affected by wellness programs. We have <a href=\"https:\/\/millercenter.org\/issues-policy\/us-domestic-policy\/the-state-health-care-cost-containment-commission\">good research<\/a> that shows us what the main drivers of healthcare costs are.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2020\/01\/pickleball-1024x683.png\" alt=\"wellness reduces health care costs, workplace health programs reduce health care costs, workplace health promotion program examples, occupational health programs in the workplace, best workplace wellness programs, workplace health promotion strategies, workplace health and wellness\" class=\"wp-image-100322\" style=\"width:550px\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2020\/01\/pickleball-1024x683.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2020\/01\/pickleball-300x200.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2020\/01\/pickleball-768x513.png 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2020\/01\/pickleball.png 1254w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-drivers-of-high-healthcare-costs-should-effective-workplace-health-programs-address\"><span class=\"ez-toc-section\" id=\"What_drivers_of_high_healthcare_costs_should_effective_workplace_health_programs_address\"><\/span>What drivers of high healthcare costs should effective workplace health programs address?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-unhealthy-lifestyle-behaviors\"><span class=\"ez-toc-section\" id=\"Unhealthy_Lifestyle_Behaviors\"><\/span>Unhealthy Lifestyle Behaviors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Unhealthy lifestyle behaviors<\/strong><\/em> are responsible for most chronic diseases.&nbsp; These diseases cause approximately 70 percent of all deaths and up to <a href=\"https:\/\/web.archive.org\/web\/20220920083248\/https:\/\/www.cdc.gov\/chronicdisease\/pdf\/2009-power-of-prevention.pdf\">75% of all healthcare costs<\/a>. Lack of physical activity, poor diets and tobacco use are directly responsible for 70-90% of chronic diseases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-salary-and-drug-costs\"><span class=\"ez-toc-section\" id=\"Salary_and_Drug_Costs\"><\/span>Salary and Drug Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Salary and drug costs<\/strong><\/em> in the U.S. are the highest in the world. Physicians, nurses, and other healthcare providers make higher salaries than comparable professionals in other industrialized countries. In one company, the cost of medications has increased 27% in the past 12 months. Examples of soaring prices have been <a href=\"https:\/\/web.archive.org\/web\/20221218151600\/https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2015\/09\/21\/how-an-obscure-drugs-4000-price-increase-might-finally-spur-action-on-soaring-health-care-costs\/\">reported<\/a> on multiple media outlets. Pharmaceuticals are the new gold rush.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-expensive-technology-and-procedures\"><span class=\"ez-toc-section\" id=\"Expensive_Technology_and_Procedures\"><\/span>Expensive Technology and Procedures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Expensive technologies and procedures <\/strong><\/em>such as MRI and CT scanning are medical marvels that come at a steep price. Fearing possible litigation, physicians will practice defensive medicine and order these scans when they are often unwarranted. Undoubtedly, this is one reason Americans do twice as much imaging as other populations in the industrialized world.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fragmented-care\"><span class=\"ez-toc-section\" id=\"Fragmented_Care\"><\/span>Fragmented Care<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Fragmented care<\/strong><\/em> refers to the uncoordinated and&nbsp;disconnected&nbsp;care provided by many healthcare facilities. Multiple doctors from different facilities, incompatible records systems, multiple surgeries and duplicate lab tests are common features of our healthcare system. These factors contribute to the duplication of procedures and tests.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cost-consideration\"><span class=\"ez-toc-section\" id=\"Cost_Consideration\"><\/span>Cost Consideration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Lack of cost consideration<\/strong><\/em> really refers to a lack of cost transparency. Unlike free market transactions, where a buyer and a seller agree over a known price, most medical patients have no idea how much things cost.&nbsp; Consequently, by having insurance, many people never see the price of goods and services, and do not base their decision to purchase based on price. &nbsp;The healthcare provider and the insurance company decide the price, which makes it easier to increase prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fee-for-service\"><span class=\"ez-toc-section\" id=\"Fee_for_Service\"><\/span>Fee for Service<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Fee for service<\/strong><\/em> means doctors only get paid when they provide a service\u2014by putting something in or taking something out of you. Financial incentives are based on quantity of services provided, not quality. Hence, most physicians face direct financial pressure to provide a service, whether or not it is needed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-administrative-costs\"><span class=\"ez-toc-section\" id=\"Administrative_Costs\"><\/span>Administrative Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>High administrative costs <\/strong><\/em>exceed <a href=\"https:\/\/web.archive.org\/web\/20221224173914\/https:\/\/www.nejm.org\/doi\/full\/10.1056\/NEJMsa022033\">$1,100 per person per year<\/a>.&nbsp; Excluding the actual cost of providing health care, it costs $1,100 per person just to administer health care in the U.S.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-end-of-life-care\"><span class=\"ez-toc-section\" id=\"End-of-life_Care\"><\/span>End-of-life Care<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>End-of-life care<\/strong><\/em> is the most expensive of all medical care. &nbsp;<a href=\"http:\/\/time.com\/money\/2793643\/cutting-the-high-cost-of-end-of-life-care\/\">One out of every four<\/a>&nbsp;Medicare dollars is spent on end-of-life care.&nbsp; In 2012, that was $125 billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-provider-consolidation\"><span class=\"ez-toc-section\" id=\"Provider_Consolidation\"><\/span>Provider Consolidation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Provider consolidation<\/strong><\/em> means <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/hospital-wellness-programs\/\" target=\"_blank\" rel=\"noreferrer noopener\">hospitals and physician groups<\/a> are banding together with the goal of increasing market share. With each consolidation comes the tendency to increase the cost of services because of reduced competition.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/Health-care-cost-drivers-1.png\"><img decoding=\"async\" width=\"1024\" height=\"629\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/Health-care-cost-drivers-1-1024x629.png\" alt=\"\" class=\"wp-image-98\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/Health-care-cost-drivers-1-1024x629.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/Health-care-cost-drivers-1-300x184.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/Health-care-cost-drivers-1.png 1047w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>This list of cost drivers is not comprehensive but it does include the most important ones. &nbsp;Worksites may not see or understand how healthcare costs are impacted by these drivers, but they do recognize strategies that can help slow cost increases. &nbsp;Some of these are more effective than others, depending on the worksite.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><a href=\"http:\/\/www.wellsteps.com\/demosignup\"><img decoding=\"async\" width=\"1024\" height=\"463\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2017\/01\/welllsteps-offer-3-1024x463.png\" alt=\"workplace wellness programs reduce health care costs effective wellness programs, business health programs, workplace health programs, reduce health care costs, workplace health promotion program examples, occupational health programs in the workplace, best workplace wellness programs, workplace health promotion strategies, workplace health and wellness\" class=\"wp-image-1591\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2017\/01\/welllsteps-offer-3-1024x463.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2017\/01\/welllsteps-offer-3-300x136.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2017\/01\/welllsteps-offer-3-768x347.png 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2017\/01\/welllsteps-offer-3.png 1350w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-strategies-reduce-healthcare-costs-through-workplace-health-programs\"><span class=\"ez-toc-section\" id=\"What_strategies_reduce_healthcare_costs_through_workplace_health_programs\"><\/span>What strategies reduce healthcare costs through workplace health programs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drop-insurance\"><span class=\"ez-toc-section\" id=\"Drop_Insurance\"><\/span>Drop Insurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Drop insurance completely<\/strong><\/em> by forcing employees to seek healthcare coverage in the exchanges. &nbsp;Larger employers can pay the federal penalty each year and pass the remaining cost of health care directly to the employee. &nbsp;Many companies have considered this as another version of healthcare cost shifting. &nbsp;In fact, this is exactly what <a href=\"https:\/\/web.archive.org\/web\/20201112031305\/https:\/\/www.nytimes.com\/2014\/10\/08\/business\/30000-lose-health-care-coverage-at-walmart.html\">Walmart did<\/a> with it&#8217;s 30,000 part-time employees. <a href=\"https:\/\/web.archive.org\/web\/20221128194826\/https:\/\/www.washingtonpost.com\/business\/economy\/walgreens-moves-workers-to-private-health-care-exchanges\/2013\/09\/18\/46f2c074-2082-11e3-8459-657e0c72fec8_story.html\">Others <\/a>are doing the same. &nbsp;If dropping insurance coverage is too bold, you can do what most employers do, pass the cost increase along to your employees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-change-carriers-negotiate-rates\"><span class=\"ez-toc-section\" id=\"Change_CarriersNegotiate_Rates\"><\/span>Change Carriers\/Negotiate Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Change insurance carriers\/ negotiate better rates<\/em>&nbsp;<\/strong>in an attempt to get better pricing. Most carriers will negotiate hard to get your business. &nbsp;It may be possible to shave a few percentage points off the cost during year one, but soon after the honeymoon is over, cost increases continue. &nbsp;This strategy is usually a dead end.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-self-insure\"><span class=\"ez-toc-section\" id=\"Self-Insure\"><\/span>Self-Insure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><em><strong>Self-insurin<\/strong><\/em><\/span><em><strong>g\u00a0<\/strong><\/em>means employers pay for employee healthcare costs directly. \u00a0With this approach, the risk of high healthcare costs is borne by the employer. \u00a0Stop loss policies help protect against catastrophic costs. Once thought to be a strategy of large corporations,\u00a0there are insurance companies that will self-insure a company with as few as 50 people. \u00a0Accordingly, this can help reduce approximately 7% of the costs associated with administering a fully insured insurance plan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-high-deductible-plans\"><span class=\"ez-toc-section\" id=\"High_Deductible_Plans\"><\/span>High Deductible Plans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>High deductible plans<\/strong><\/em> are more popular than ever. They are the ultimate in cost-shifting. &nbsp;<a href=\"http:\/\/www.rwjf.org\/content\/dam\/farm\/reports\/reports\/2012\/rwjf402405\/subassets\/rwjf402405_1\">Some studies have shown<\/a> that when your employees begin a high deductible healthcare plan, healthcare costs can be reduced by as much as 5-14%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-on-site-clinics\"><span class=\"ez-toc-section\" id=\"On-site_Clinics\"><\/span>On-site Clinics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>On-site clinics<\/strong><\/em>&nbsp;are loved by employees and they may well have a big impact on employee productivity, but it is <a href=\"http:\/\/www.ncbi.nlm.nih.gov\/pubmed\/22418274\">still unclear <\/a>if they can actually reduce healthcare costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-disease-management-strategies\"><span class=\"ez-toc-section\" id=\"Disease_Management_Strategies\"><\/span>Disease Management Strategies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Disease management<\/strong><\/em> includes strategies to manage the chronic conditions of high-risk, high-cost&nbsp;employees.&nbsp;The <a href=\"http:\/\/www.ncbi.nlm.nih.gov\/pubmed\/15300966\">research says<\/a>&nbsp;disease management can improve patient care and may improve health outcomes, but <a href=\"https:\/\/web.archive.org\/web\/20221011172806\/https:\/\/www.nejm.org\/doi\/full\/10.1056\/NEJMsa1011785\">fails to save money.<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-employee-health-programs\"><span class=\"ez-toc-section\" id=\"Employee_Health_Programs\"><\/span>Employee Health Programs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em><strong>Workplace health programs <\/strong><\/em>are one of the most effective and well-accepted cost reduction strategies. Many employers&nbsp;have <a href=\"https:\/\/web.archive.org\/web\/20200621053028\/https:\/\/www.healthaffairs.org\/doi\/full\/10.1377\/hlthaff.2009.0626\">demonstrated<\/a> that effective workplace health programs don&#8217;t eliminate the drivers of healthcare costs, but they do reduce the demand for healthcare services. &nbsp;Said another way, workplace health programs help worksites avoid high health care costs because they help employees stay healthy and stay out of the healthcare system.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/worksite-wellness-unhealthy-behaviors.png\"><img decoding=\"async\" width=\"1024\" height=\"611\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/worksite-wellness-unhealthy-behaviors-1024x611.png\" alt=\"\" class=\"wp-image-104\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/worksite-wellness-unhealthy-behaviors-1024x611.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/worksite-wellness-unhealthy-behaviors-300x179.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/worksite-wellness-unhealthy-behaviors.png 1144w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Worksite wellness&nbsp;programs will not impact all the drives of healthcare costs, but they can&nbsp;impact unhealthy behaviors and this is how wellness programs save money. <\/p>\n\n\n\n<p>By helping employees adopt and maintain healthy behaviors, they improve their health and avoid chronic diseases. &nbsp;Without chronic disease, we greatly reduce the cost of health care.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-should-employers-do-next-to-implement-effective-workplace-health-programs\"><span class=\"ez-toc-section\" id=\"What_should_employers_do_next_to_implement_effective_workplace_health_programs\"><\/span>What should employers do next to implement effective workplace health programs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In short, this last image shows how an effective employee wellness&nbsp;program&nbsp;can have a direct impact on at least one of the divers of healthcare costs: unhealthy behaviors. &nbsp;<\/p>\n\n\n\n<p>Good <a href=\"http:\/\/www.wellsteps.com\">wellness programs<\/a> keep people out of the healthcare system.&nbsp;Because, when you are outside the healthcare system, the drivers of healthcare costs are less impactful. &nbsp;Reduced health care costs is just one way wellness programs save money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1766763648014\"><strong class=\"schema-faq-question\"><em>What exactly is a wellness program?<\/em><\/strong> <p class=\"schema-faq-answer\">Basically, an employee wellness program consists of health promotion strategies designed to aid employees in their health and prevent chronic disease. Employers can provide workplace wellness programs in-house or through a vendor. To learn about what programs WellSteps has to offer, click <a href=\"https:\/\/www.wellsteps.com\/solutions\">here<\/a>. If you are planning on creating an internal program, <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/employee-wellness-program-ideas\/\">this blog post<\/a> has a variety of health-promoting ideas to help you get started.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766763667768\"><strong class=\"schema-faq-question\"><em>What are some ways to improve workplace health?<\/em><\/strong> <p class=\"schema-faq-answer\">At WellSteps, we believe in making small, sustainable changes. We often see ads for a short-term challenge that has extreme restrictions on diet or requires an unusual amount of exercise. Most people would not be able to keep up these behaviors for the rest of their lives. Through the WellSteps program, participants learn how to make small changes that lead to life-changing results. Employers can support these efforts by making the healthy option the easy option. For example, they can provide fresh produce in their cafeteria rather than processed foods. Employers can also encourage walking meetings and mental health breaks. For more ideas on how to integrate health and wellness into the workplace, see <a href=\"https:\/\/www.wellsteps.com\/blog\/2022\/02\/10\/health-and-wellness-programs-in-the-workplace\/\">this article.<\/a><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766763688756\"><strong class=\"schema-faq-question\"><em>What makes a successful wellness program?<\/em><\/strong> <p class=\"schema-faq-answer\">To create an effective workplace health program, you will need senior leader support and an engaged program coordinator\/wellness committee. This means that the senior leader and wellness committee are actively participating in the program and helping make decisions. The best wellness programs involve healthy activities backed by research and include all aspects of wellness, not just exercise and nutrition. Another essential element for success is valuable incentives that reward participation. To learn more about wellness incentives, click <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-program-incentives\/\">here<\/a>.<\/p> <\/div> <\/div>\n\n\n\n<p><\/p>\n\n\n\n\n\n<p class=\"has-text-align-center\">[maxbutton id=&#8221;1&#8243;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why should employers consider implementing employee wellness programs? The health and chronic disease prevention centers of America are now America&#8217;s worksites. There&#8217;s not a single group in America that does more to promote health and improve the health behaviors of our population than worksites. This presents a challenge for workplaces to implement effective and cost&hellip;&nbsp;<a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">How Effective Workplace Health Programs Reduce Health Care Costs<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":9,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81,12,3,11,63],"tags":[61,21,60,22,23],"class_list":["post-26","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-wellness-companies","category-employee-wellness","category-health-care-costs","category-worksite-wellness","category-worksite-wellness-program","tag-best-worksite-wellness-programs","tag-health-care-costs","tag-top-corporate-wellness-programs","tag-wellness-programs","tag-wellness-roi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Workplace Programs Reduce Health Care Costs<\/title>\n<meta name=\"description\" content=\"Effective workplace health programs reduce health care costs when they improve employee health behaviors and reduce elevated health risks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Effective Workplace Health Programs Reduce Health Care Costs\" \/>\n<meta property=\"og:description\" content=\"Executive Summary What makes a workplace health program effective? An effective workplace health program lowers healthcare costs by reducing preventable\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WellSteps\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-02T23:10:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T17:03:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/slide_walk.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1917\" \/>\n\t<meta property=\"og:image:height\" content=\"711\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Dr. Steve Aldana\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" 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Dr. Aldana authored over 75 scientific papers and 7 books on health risk management, healthy living, and health promotion programs. He has given over 350 keynote speeches across the U.S. on the ability of good nutrition and regular exercise to prevent, arrest, and reverse many chronic diseases.","sameAs":["https:\/\/www.wellsteps.com"],"url":"https:\/\/www.wellsteps.com\/blog\/author\/steve\/"},{"@type":"Question","@id":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763648014","position":1,"url":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763648014","name":"What exactly is a wellness program?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Basically, an employee wellness program consists of health promotion strategies designed to aid employees in their health and prevent chronic disease. Employers can provide workplace wellness programs in-house or through a vendor. To learn about what programs WellSteps has to offer, click <a href=\"https:\/\/www.wellsteps.com\/solutions\">here<\/a>. If you are planning on creating an internal program, <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/employee-wellness-program-ideas\/\">this blog post<\/a> has a variety of health-promoting ideas to help you get started.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763667768","position":2,"url":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763667768","name":"What are some ways to improve workplace health?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"At WellSteps, we believe in making small, sustainable changes. We often see ads for a short-term challenge that has extreme restrictions on diet or requires an unusual amount of exercise. Most people would not be able to keep up these behaviors for the rest of their lives. Through the WellSteps program, participants learn how to make small changes that lead to life-changing results. Employers can support these efforts by making the healthy option the easy option. For example, they can provide fresh produce in their cafeteria rather than processed foods. Employers can also encourage walking meetings and mental health breaks. For more ideas on how to integrate health and wellness into the workplace, see <a href=\"https:\/\/www.wellsteps.com\/blog\/2022\/02\/10\/health-and-wellness-programs-in-the-workplace\/\">this article.<\/a>","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763688756","position":3,"url":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/effective-workplace-health-programs\/#faq-question-1766763688756","name":"What makes a successful wellness program?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"To create an effective workplace health program, you will need senior leader support and an engaged program coordinator\/wellness committee. This means that the senior leader and wellness committee are actively participating in the program and helping make decisions. The best wellness programs involve healthy activities backed by research and include all aspects of wellness, not just exercise and nutrition. Another essential element for success is valuable incentives that reward participation. To learn more about wellness incentives, click <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-program-incentives\/\">here<\/a>.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/posts\/26","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/comments?post=26"}],"version-history":[{"count":34,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/posts\/26\/revisions"}],"predecessor-version":[{"id":111230,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/posts\/26\/revisions\/111230"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/media\/9"}],"wp:attachment":[{"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/media?parent=26"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/categories?post=26"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wellsteps.com\/blog\/wp-json\/wp\/v2\/tags?post=26"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}