As an independent insurance agent, you see the connection between workplace wellness programs and lower health care insurance costs. But, did you know that workplace wellness programs also may lower workers’ compensation insurance costs for your business clients? It’s true. The benefits of wellness programs transcend multiple lines of insurance. The potential savings on workers’ comp premiums and claims costs are clear. Research confirms it.
Proof is in the numbers
A review of 42 published studies involving the economic returns of workplace wellness programs showed that, on average, employers saw a 30 percent reduction in workers’ compensation and disability claims costs. What’s more, research conducted at the University of Michigan showed that low-risk employees have lower costs for short-term disability, workers’ compensation, absence and health care costs; whereas, high-risk employees have higher costs.
Obesity is costly in workers’ comp. A Duke University study found that obese workers filed twice the number of workers’ comp claims and lost 13 times more days of work from job-related injuries or illnesses than non-obese workers. Medical claims involving obese workers cost more, too. The study found that, on average, a claim involving a worker with a normal Body Mass Index (BMI) cost $7,500. The claim associated with a worker with a severely obese BMI totaled more than $51,000.
A seven-step plan for clients
You can help your business clients establish a workplace wellness program that will keep their bottom lines healthy. Let your clients know as employers they are in an ideal position to help their workers get healthy and stay healthy. Here’s how:
Gain support from management. The greater the support a wellness program has from management, the greater its chances of success.
Identify a wellness champion, team to lead the program. Human Resources and/or safety staff are ideal candidates to communicate the mission of the program and coordinate activities.
Establish a budget. A budget allows your client to offer discounted gym memberships, in-house exercise and health classes, healthy food options and other incentives to encourage participation.
Identify employees’ and company’s needs. Conduct a workforce assessment with your client and assess hard data such as absenteeism, medical and workers’ comp claims, prescription usage, demographics, etc. Ask employees what health and wellness topics are most important to them.
Partner with community wellness providers. Local hospitals and health insurers often have outreach programs that will educate employees about health and wellness.
Implement the wellness program. The employer should publicize the new program to employees and encourage involvement.
Measure the effectiveness of the program, celebrate successes. Help your client discover which initiatives work best and are the most popular, and monitor employee satisfaction.
A workplace wellness program can help your clients’ employees safely live and work to their fullest potential. Show your clients the clear connection between employee wellness and savings on workers’ compensation expenses.
Tim Michels, a lawyer and executive vice president of claims for Maryland workers’ compensation insurer IWIF, may be contacted at 410-494-2300 or tmichels[at]iwif[dot]com'); //--> ">tmichels[at]iwif[dot]com.
Sales: Making the workplace wellness, workers’ comp. cost connection via IFAwebnews.com .
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