Major U.S. employers using incentives to promote employer-sponsored health and wellness programs rose from 62 percent to 71 percent between 2007 and 2008, according to a report released by the ERISA Industry Committee (ERIC), the National Association of Manufacturers (NAM) and IncentOne Inc. This is the second year the survey was conducted to determine employer adoption of incentives for health and disease management programs, and to assess the nuances of incentives they are using: the types of incentives currently used, the programs they use them for and the amount they are paying. The survey also sought to understand employer expectations for program ROI and challenges employers faced in implementing and operating these programs.

The survey found that:

• There was a wide range in the value of incentives offered for a host of different programs. For instance, incentives for weight management programs ranged from $5 to $500, and for smoking cessation programs from a low of $5 to a high of $600. The average value of incentives per person per year ranged between $100 and $300, with an overall average of $192 per person per year.
• Major U.S. companies employing 7.6 million employees delved into employer expectation for ROI for health and wellness programs, finding that 83 percent of those who have measured are seeing program returns of better than break-even.

“More employers have learned that investment in their employees’ health is smart — it brings a positive return,” said ERIC President Mark Ugoretz. “But directing resources towards workers’ health must be balanced with an understanding of how incentives work within these programs. This survey shows that employers are serious about understanding the business case for incentives for employee engagement and participation. They want to make the most of these programs that can both lower costs and improve productivity.”

Source: ERISA Industry Committee, June 26, 2008
http://www.eric.org/forms/documents/Document…