Pay for ... Wellness?

This article from Sunday's Oregonian reports on a growing number of Oregon employers who, as part of the universal effort to control health insurance costs, are now offering cash incentives to persuade their employees to "eat better, lose weight, exercise regularly and monitor their health".

The article cites several examples, including:

This month, Regence BlueCross Blue Shield of Oregon is expanding the health and wellness incentives program it rolled out last fall to the largest employers on its roster of customers. The program, tested on Regence's own employees the past two years, gives workers points for exercising, reading health education materials and joining weight- and smoking-cessation programs -- points that can be redeemed for gift certificates or other prizes.

And -

More than 100 mostly salaried employees at Roseburg Forest Products Co. who last year met certain exercise, weight and health-management goals -- without smoking -- will get, on average, a $419 bonus in their paychecks next month, representing a 10 percent rebate on the cost of the timber company's annual cost to insure an individual.

The jury is out as to whether these incentive will be successful in making a dent in health costs, but it will be an interesting trend to watch.

Comments

[Paul Hebert]

Two problems with these approaches. One more a problem than the other.

The problems with the second plan first. "Paying" for wellness with cash creates two issues...

1. As soon as cash is used to create behavior change it becomes an entitlement and creates an expectation that it will continue. Cash becomes part of their income.

2. In effect this plan pays unhealthy people more than healthy employees. That one would be hard to cover in a performance review. In fact healthy employees could begin unhealthy habits in order to fix the problems later for an increase in income.

The first plan, while better because it separates the wellness issue from compensation it still rewards those that start out below the inferred performance level. Wellness programs need to include and reward those that already have a healthy lifestyle through base awards for specific health statistics and by engaging those employees as coaches and "experts" to help the others. This will provide a "psychic" reward by elevating these employees and recognizing their efforts to help the organization.