Use of Incentives Grows as U.S. Employers Look to Improve Workforce Health and Productivity

Lincolnshire, Ill. — Aug. 8

U.S. employers are increasingly relying on incentives to drive participation in health programs and encouraging employees and their families to take better care of themselves, according to new survey findings from Aon Hewitt.

Aon Hewitt’s survey of nearly 2,000 U.S. employers representing more than 20 million U.S. employees and their dependents found that 84 percent now offer employees incentives for participating in a health risk questionnaire (HRQ) and almost two-thirds (64 percent) offer an incentive for participation in biometric screenings.

Just over half (51 percent) provide incentives to employees who participate in health improvement and wellness programs.

The use of monetary incentives, in particular, has increased dramatically over the past year. In 2012, 59 percent of employers used monetary incentives to promote participation in wellness and health improvement programs, up from 37 percent in 2011. The use of monetary incentives for participating in disease/condition management programs almost tripled in 2012, from 17 percent in 2011 to 54 percent.

Aon Hewitt’s survey also shows a growing number of employers are beginning to link incentives to a result, as opposed to simply participating in a program.

Of companies that offer incentives, 58 percent offer some form of incentive for completing lifestyle modification programs, such as quitting smoking or losing weight. About one-quarter offer incentives for progress or attainment made towards meeting acceptable ranges for biometric measures such as blood pressure, body mass index, blood sugar and cholesterol.

Employers also are requiring more of participants in order for them to be eligible for enhanced benefits, such as value-based insurance designs (VBID).

Of the 46 percent of organizations that incorporate some type of VBID approach in their health plans, almost one in three require completion of a HRQ or require participation in a program such as disease management or smoking cessation programs to receive the enhanced benefits — a 33 percentage point increase from 2011, where nine out of 10 employers did not impose any requirements.

Despite increased employer interest in tying incentives to results, Aon Hewitt’s survey shows room for improvement.

More than 80 percent of employers provide an incentive to complete a health questionnaire, yet less than 10 percent provide an incentive to address the results of the questionnaire.

Further, more than 60 percent of employers provide an incentive to complete biometric screening, but less than 10 percent provide an incentive to take any action.

Source: Aon plc