Benefits and Compensation

Wellness Discounts of $60-$120/Month Drive High ROI

Jeppesen and Dent made their comments at the SHRM Annual Conference and Exhibition held recently in Las Vegas, Nevada. Jeppesen, who is SPHR certified, is senior VP, Human Resources of Larry H. Miller Group of Companies; Dent is a senior consultant for ACAP Health in Dallas Texas.

Costs of Health Care with Wellness in Place

What’s the bottom line for the wellness program Dent and Jeppesen run? Over 4 years, employee costs have held relatively stable, employer costs have stayed stable, while most employers have encountered substantial rises in costs.

Annual Medical Plan Cost per Covered Employee

Year

Employee Cost

Employer cost

2006

1650

8,875

2007

1950

9,038

2008

2000

8,697

2009

1750

8,669

2010

1850

9,300


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The program flows as shown in the diagram. Successful completion results in a substantial discount off health care insurance contribution. (Employees get a $60.00 per month reduction and an additional $60.00 per month if the spouse participates). In 2014, when a greater discount is allowed, Jeppesen expects to offer the enhanced discount.

Jeppesen calls the Miller Companies’ program Fit for the Future. The diagram shows how it works.

Fit for the Future
All employees are invited to participate

Elects to participate
Employee elects to participate and undergoes screening for metabolic syndrome

Elects NOT to participate

Has metabolic syndrome
If screening reveals that employee has metabolic syndrome, he or she is invited to participate in the program.

Does not have metabolic syndrome Screening reveals that employee does not have metabolic syndrome (or the employee has a physician’s waiver)

 

Completes
Employee
completes program

Does NOT Complete
Employee does NOT complete program

 

 

Discount of $60/month for employee; additional $60/m if spouse participates

No discount—Employee makes regular contribution

Discount of $60/month for employee; another $60/m if spouse participates

No discount–Makes regular contribution

What does the program cost? About $7.50 per participant per month.

Simple Takeaway

If listeners take only one thing away from hearing her speak, Jeppesen wants to impart this wellness tip—First, note that 1 teaspoon of sugar equals 4 grams of sugar. Then, she says, think about that yogurt you are so proud of eating. Typically yogurt has 36 grams of sugar. That’s 9 teaspoons of sugar in that little tiny cup!

Her First Thank You

Speaking of employee responses to her Fit for the Future Program, Jeppesen says that it’s the only time in her career that employees have come up to her to say “Thank you.”

Wellness, just one of the issues comp and benefits managers must deal with. There’s no shortage of challenges, is there? “Maintain internal equity and external competitiveness and control turnover, but still meet management’s demands for lowered costs.” Heard that one before?  Many of the professionals we serve find helpful answers to all their compensation questions at Compensation.BLR.com, BLR’s comprehensive compensation website.

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