Many employers have had the displeasure of watching their health care premiums climb year after year, and this trend likely will continue. A recent analysis by Hewitt Associates reports average premium increases for 2009 and 2010 at 6 and 6.9 percent, respectively, and projects an 8.8 percent average premium increase for 2011.

While there’s not much employers can do to stop costs from rising, wellness programs continue to be a major strategy to control premiums. It makes sense to try to influence employees’ behaviors. The Centers for Disease Control and Prevention reported in December 2009 that more than 75 percent of employers’ health care costs and productivity losses are related to employee lifestyle choices and are therefore preventable. In addition to helping to control health care costs, successful wellness programs can lower an employer’s injury and illness rates, worker compensation claims, turnover and absenteeism. They also can be a catalyst to improve employee morale.

Wellness in Practice
Global hygiene and paper manufacturer SCA saw firsthand the difference a wellness program can make. John O’Rourke, vice president of human resources for SCA, Americas, said 2011 will be the organization’s fourth year of active support of workforce wellness. The current program, “SCA, Your Life, Your Health” works from the top down to encourage a healthy culture.

A wellness focus has helped the organization see slower-than-market increases in premiums in the past two years as well as slow health care spend. O’Rourke said monetary savings is one indication of the program’s success, but it’s not the only aim. “It will be a meaningful success when we see the health risk factors of employees brought under control,” he said.

Miles Kimball Company, a direct marketer of consumer gifts and household products, also has found success with a program called “The Wellness Connection,” first introduced in 2001. Human resources manager Susan Boettcher said by emphasizing preventive care, fitness, nutrition and education, Miles Kimball’s program has decreased its moderate-risk employee population – those with three or four major health risks – from 58 percent to 28 percent over the past 10 years. The company also has decreased its high-risk population – employees with five or more major health risks – from 18 percent to less than 3 percent over the same period of time.