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Health-care panel: Employers need to get serious about wellness programs

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Want to reduce your company’s healthcare costs, make your employees love you and possibly even encourage them to work harder? A recent survey by Principal Wellness Co. says that starting a company wellness program may help you reach each of these goals.

According to a study conducted in November by Harris Interactive Inc. for Principal Wellness, a company that develops and markets wellness plans, 55 percent of respondents said they believe their company’s wellness plan benefits them personally. And, 47 percent of employees surveyed said they’re motivated to work harder at their jobs because they have a wellness plan.

At the same time, Principal Wellness has found that companies with active wellness programs are achieving returns on investment of $2.50 to $3 for every dollar spent on those programs, based on reductions in health-care costs.

“It’s all about changing behaviors and influencing people to adopt healthy lifestyles,” said David Blanford, president of Principal Wellness. Blanford was the opening speaker during a Power Breakfast on the Rising Cost of Healthcare hosted by the Des Moines Business Record.

Two hundred business leaders attended the breakfast, which was held Thursday at the Des Moines Club. Joining the discussion was a five-person panel representing Greater Des Moines’ health-care community: Dave Vellinga, president and CEO of Mercy Medical Center; Eric Crowell, president and CEO of Iowa Health – Des Moines; C. Edward Brown, CEO of The Iowa Clinic; Jody Jenner, president and CEO of Broadlawns Medical Center; and Ellen Gaucher, group vice president for operations and quality for Wellmark Blue Cross and Blue Shield. Doug Reichardt, chairman and CEO of insurance broker Holmes Murphy & Associates Inc., moderated.

With private employers footing an estimated 70 percent of the nation’s $1.2 trillion annual health-care bill, it’s in their interest to take the lead in making changes that will reduce those costs, said Blanford, whose Indianapolis-based company was acquired two years ago by Principal Financial Group Inc.

As his business was just exploring wellness programs 14 years ago, “wellness was an extremely unpopular concept, but we stuck with it because it was in the best interests of our clients,” he said. With seven out of 10 deaths in the United States caused by chronic diseases that are preventable, there’s a lot of room for wellness programs to make a difference, he said. Among cancer patients, for instance, about 40 percent of cases could have been prevented by a proper diet and exercise, he said.

To be effective, wellness programs must be ongoing and long-term, and provide incentives for people to join them, Blanford said. His company increased its participation rate to 99 percent after introducing a discount on health insurance premiums for employees who joined, he said.

Discussing what more employers could do to reduce health-care costs, Crowell praised the Lighten Up Iowa program, spearheaded by former Gov. Bob Ray, as an example of a program that’s working well in reaching out to Iowa residents. A program of the Iowa Games, the team approach encourages healthful eating and exercise and now has 30,000 participants. Another good resource for businesses, Crowell said, is the Wellness Council of Iowa, which on April 20 will recognize Iowa businesses and employees during its first Light of Wellness Awards Dinner.

Some of the panelists noted that an increase in the state’s cigarette tax would go a long way toward paying for health initiatives while discouraging an unhealthy habit.

“We are pushing very hard for it,” Vellinga said. “We still have an uphill battle. There are strong forces opposed to a tax increase.”

Iowa Hospital Association CEO Kirk Norris said, “Frankly, the majority of legislators supports (increasing the cigarette tax),” but noted that House Speaker Christopher Rants remains an obstacle to any new tax legislation being passed. He urged business leaders to contact their legislators to voice their opinions.

Alternatively some audience members questioned whether targeting smokers will lead toward penalizing other employees who may have higher health costs, such as overweight or obese people.

“People who are in a committed relationship have been found to be healthier,” one business owner said, “but I don’t have time to start a dating service. Where do I draw the line?”