Featured Research

from universities, journals, and other organizations

Workplace wellness plan saves money over the long-term, new study shows

Date:
August 20, 2010
Source:
University of Michigan
Summary:
A Midwest utility company learned firsthand that it pays to keep healthy employees fit, reaping a net savings of $4.8 million in employee health and lost work time costs over nine years.

A Midwest utility company learned firsthand that it pays to keep healthy employees fit, reaping a net savings of $4.8 million in employee health and lost work time costs over nine years.

A University of Michigan study of workplace wellness programs is one of the only longitudinal studies of its kind, said co-author Louis Yen, associate research scientist in the School of Kinesiology's Health Management Research Center.

Over the nine years, the utility company spent $7.3 million for the program and showed $12.1 million in savings associated with participation. Medical and pharmacy costs, time off and worker's compensation factored into the savings, said Alyssa Schultz, research area specialist intermediate.

The findings are good news for companies looking to implement wellness programs, said Dee Edington, director of the U-M Health Management Research Center and principal investigator.

"One of the advantages of the study is it shows that a sustainable program will give you savings," said Edington, also a professor in the School of Kinesiology and a research scientist in the U-M School of Public Health. "Previous studies looked at programs that are short and intense and cover the same people."

The U-M study differed in three important ways. First, it shows that wellness programs work long-term, even though the employees who participated aged during the study. Second, the study took into account all bottom line costs for implementing the wellness plan. For instance, indirect costs such as recruitment and costs for changing menus. Most studies include just the direct costs to the company for paying for employees who participate. But even using the very conservative U-M figures showed a cost savings, Yen said.

A third difference is that it looked at lost work time as well as pharmacy and medical costs, Schultz said. The employees who participated in all years saw those costs had increased by$96; those who participated in some of the years rose $230; and costs for those who never participated jumped by $355. The program cost $100 per year per employee whether the employee participated or not. Therefore, a participation-related savings of $257 and $125 was calculated for the employees who participated in all years and those who participated in just some years.

Slowly, companies are realizing that while insurance plans must care for sick employees, those plans must also include wellness plans to keep healthy workers healthy, Edington said.

"It's still a large company activity, but the growth (in wellness plans) is in the medium-sized companies," Edington said.

So what should a company do when looking for a benefit plan for employees?

"You want a benefit plan that will take care of your sick people but also keep your healthy people healthy and working," Edington said.


Story Source:

The above story is based on materials provided by University of Michigan. Note: Materials may be edited for content and length.


Cite This Page:

University of Michigan. "Workplace wellness plan saves money over the long-term, new study shows." ScienceDaily. ScienceDaily, 20 August 2010. <www.sciencedaily.com/releases/2010/08/100818151824.htm>.
University of Michigan. (2010, August 20). Workplace wellness plan saves money over the long-term, new study shows. ScienceDaily. Retrieved August 23, 2014 from www.sciencedaily.com/releases/2010/08/100818151824.htm
University of Michigan. "Workplace wellness plan saves money over the long-term, new study shows." ScienceDaily. www.sciencedaily.com/releases/2010/08/100818151824.htm (accessed August 23, 2014).

Share This




More Health & Medicine News

Saturday, August 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Drug Used To Treat 'Ebola's Cousin' Shows Promise

Drug Used To Treat 'Ebola's Cousin' Shows Promise

Newsy (Aug. 21, 2014) An experimental drug used to treat Marburg virus in rhesus monkeys could give new insight into a similar treatment for Ebola. Video provided by Newsy
Powered by NewsLook.com
Two US Ebola Patients Leave Hospital Free of the Disease

Two US Ebola Patients Leave Hospital Free of the Disease

AFP (Aug. 21, 2014) Two American missionaries who were sickened with Ebola while working in Liberia and were treated with an experimental drug are doing better and have left the hospital, doctors say on August 21, 2014. Duration: 01:05 Video provided by AFP
Powered by NewsLook.com
Cadavers, a Teen, and a Medical School Dream

Cadavers, a Teen, and a Medical School Dream

AP (Aug. 21, 2014) Contains graphic content. He's only 17. But Johntrell Bowles has wanted to be a doctor from a young age, despite the odds against him. He was recently the youngest participant in a cadaver program at the Indiana University NW medical school. (Aug. 21) Video provided by AP
Powered by NewsLook.com
American Ebola Patients Released: What Cured Them?

American Ebola Patients Released: What Cured Them?

Newsy (Aug. 21, 2014) It's unclear whether the American Ebola patients' recoveries can be attributed to an experimental drug or early detection and good medical care. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins