Nearly two-thirds of organizations with wellness programs offer employees incentives – financial or otherwise – to participate.

But only one firm in five has seen major improvement in employees’ health status (and lower costs) within two years of launching the incentive. Here are three keys to getting good results – and a red flag for failure.

Cancer screenings pay off big

Most wellness programs feature health-risk assessments for things like high cholesterol and diabetes. But many overlook the need for early detection of cancer, which can affect any employee, regardless of his or her age or general health.

In many cases, you can line up certain screenings, such as skin cancer detection (the most common type of cancer and, in its early stages, the most easily treated) for free or at a nominal cost.

These resources are often available through community agencies or the American Cancer Society. More involved and expensive screenings – such as mammograms – are well worth the cost. A single case of cancer identified early typically saves thousands of dollars in medical claims and disability costs – not to mention trauma for the employee.

Smart rewards

HIPAA has tricky non-discrimination rules for offering employees a break on premiums or copays. You needn’t worry about HIPAA if you:

1. Structure the program as a cost-break for employees who embrace wellness. On the flip side, imposing surcharges for uncooperative employees can force you to jump through HIPAA hoops.
2. Make the incentive available to all employees. For example, if you offer a discount to non-smokers, an employee who recently quit smoking must also be eligible.
3. Allow employees who fail to earn the incentive to have another shot at it next plan year.

Bottom line: Make the financial incentive a reward, not a punishment. Do the incentives work? If they’re done right, yes. Firms offering monetary rewards for wellness typically save about $20 to $50 a month, according to some estimates.

Making it simple

Many firms require employees to work with a personal “health coach” in order to earn premium discounts or other incentives. Typically, the employee sets up appointments and reports to the health coach on a regular basis, either by phone or in person.

The good news: The early results are often encouraging.

The bad news: Once employees realize there’s ongoing effort involved, many lose interest. But many firms have found a simple alternative. Rather than having participants contact the health coach, the health coach calls them.

In many cases, this minor program tweak keep folks on the right track and cuts dropout rates.

Wellness starts upstairs

No matter how much money your company spends on wellness, the odds of success depend largely on the example set by top management.

Example: If your CEO is a smoker, chances are few employees will buy into a smoking cessation program.

Likewise, it’s hard to sell employees on subsidized gym memberships if your organization culture is sedentary. For wellness to work, the top brass must practice what the firm preaches.

Tags: wellness programs