Page 28 - The Edge - Fall 2016

SUMMER CONFERENCE WRAP-UP

BY DON HARRIS

Wellness Programs Pay O in Many Ways

Kendall Taylor
Implementing a wellness program can pay such dividends “Employer costs rise as employee health
as having a more productive work force and reducing a school
district’s direct and indirect costs. risks increase. Wellness programs can improve
Kendall Taylor, Wellness Coordinator at Valley Schools, told
how to put together a wellness program and some key things employee health and reduce medical and lost
AASBO members need to know. productivity costs. It takes a comprehensive
Statistics show that seven of ten deaths in the United States
are due to chronic diseases such as heart disease, stroke, cancer, wellness program to generate these results.
and diabetes, accounting for 75 percent of medical care costs,
Taylor said during an AASBO Summer Conference breakout You need to have a plan in mind that
session. What’s more, risk factors that can be modi ed that lead relates to your work force.”
to deaths from chronic disease are estimated to cause more than
half of all deaths in the country. ose risks that can be altered — Kendall Taylor, Wellness Coordinator at Valley Schools
include tobacco use, high blood pressure, physical inactivity and
overweight/obesity. For example, a 1 percent reduction in excess weight, elevated
With regard the population percentage with lifestyle-related blood pressure, glucose, and cholesterol, has been shown to save
health risks, Arizona is slightly better than national averages with $83 to $103 annually in medical costs per person. “Research
smoking and obesity and about the same with physical inactivity, studies suggest that, for every dollar invested in health promotion,
Taylor said. a company saves $3 to $5 in health and safety costs,” Taylor said
“Medical costs are just the tip of the iceberg,” Taylor said. “ at’s “Most studies identify cost savings a er three-to- ve years of
just what you see. Actually, there’s a lot going on underneath implementing a wellness program.”
causing costs to rise.” Bene ts of a wellness program include:
Direct costs involve medical and pharmacy expenses. “Indirect
costs are the villain,” she said. “ ey represent two-to-three times • e ability to a ect workers’ compensation-related expenses
what direct health care costs.” through the integration of safety and health promotion.
One of the indirect costs is presenteeism, which means • A reduction in absenteeism and presenteeism and an increase
employees are on the job but they’re not being productive. “ at in productivity. A school district is able to retain employees,
can be costly,” Taylor said. “Other costs are absenteeism, which avoiding the expenses of recruitment and training of new
means utilizing substitutes, short- and long-term disability, and employees.
workers’ compensation. e focus is so much on medical and • Improved employee job satisfaction and retention.
pharmacy costs that people don’t realize a lot of groundwork is • Positive employer image in the community, which aids in
laid to get to the real costs.” recruitment.
Medium risk adds $415 to annual medical costs, while high risk • An overall healthier environment.
adds $777 per employee, Taylor said. Sedentary employees incur
$250 more in annual health care costs than moderately active “Employer costs rise as employee health risks increase,” Taylor
employees, and medical costs paid for obese individuals is $1,429 said. “Wellness programs can improve employee health and reduce
more annually than for normal weight individuals. medical and lost productivity costs. It takes a comprehensive
Some 30 percent to 40 percent of employees say work is “very wellness program to generate these results. You need to have a plan
or extremely stressful,” which can be associated with heart disease, in mind that relates to your work force.”
high blood pressure, and depression. Job-related stress contributes A wellness program involves reviewing claims data, identifying
up to 30 percent of heart disease risk in working people and can prevalent conditions and/or medications within the work force,
a ect mental health as well, Taylor said. understanding the culture of the work force to derive an incentive
“Strong evidence exists for the effectiveness of wellness program, setting smart goals with speci c outcomes, reviewing
programs to positively impact the following – tobacco use, high
blood pressure, high cholesterol, absenteeism and fat intake,” CONTINUED ON PAGE 30
Taylor said.

THE EDGE |
28 THE EDGE FALL 2016