DELAWARE FINDS THAT WELLNESS IS HEALTHY FOR THE BOTTOM LINE

Volume 29, Issue 515 May 12, 2008

Matthew Gever

The evidence is in: “wellness” programs work. A growing number of studies show that encouraging workers to lose weight (if they’re obese or overweight), quit smoking (if they haven't already) exercise and manage chronic conditions can pay off by increasing worker productivity and preventing high-cost conditions from developing or worsening. One important payoff: rising health-care premiums may be restrained.

Recognizing this, 13 states have launched wellness initiatives for their employees. Some states encourage employee fitness and a few look to tobacco cessation and other lifestyle changes (for more, please see "Resources," below).

Delaware expanded on these approaches. The First State began testing wellness programs in 2003, but officially launched DelaWELL, its comprehensive wellness program for state employees, in 2007. "In Delaware alone, as an employer, the state's estimated health-care expenditures for fiscal year 2008 are $433 million," said Kimberly Wells, director of the DelaWELL program, at NCSL's Spring Forum in Washington, D.C.

DelaWELL was launched by the State Employees Benefits Committee, a consortium of cabinet-level officials who saw a need to address the long-term costs of state employees' health care. In 2003, the state launched a pilot test by offering "Health Rewards"--fitness assessments and advice based on private-sector models—to 100 employees at no cost to the workers. Those found to be high risk for health problems were given more advanced testing and follow-up counseling for smoking cessation, behavioral changes and disease management. All participants also had access to a series of online educational tools and workplace health seminars.

Citibank Saved Money

After the first year, the pilot produced $62,000 in trended health-care savings for the state, mostly by reducing emergency department visits and hypertension, Wells said. "What we told our employees is if they bear with us and help us cut costs, we'll give that back to you in the form of wellness programming," she added.

The state expanded the program to 500 people in the next year, and to 1,200 people in the year after that, all the while collecting feedback on what participants liked and disliked about the program. The expanded pilot produced another $450,000 in trended health-care savings for the state, as well as decreases in people's body fat percentages, blood pressure and cholesterol levels.

The program is now available to all 65,000 state employees, their spouses and under-65 retirees, and it’s helped the state keep a handle on costs. "Despite the national trend, Delaware has been able to hold the line on health-care premiums [for its employees] for the past three years running," said Wells. The state also expanded the available benefits to include biometric health screenings, which measure vital signs such as blood pressure, cholesterol and glucose levels. Also, at the request of many employees, the state now reimburses employees for Weight Watchers. "They wanted a weight loss program," said Wells.

Lessons for States

Financial incentives are essential for keeping employees engaged, Wells said. Delaware offers a $100 paycheck bonus to employees who complete the biometric screening and health risk assessment. Officials see this as part of a long-term strategy. "It takes a little time to reap the benefits, but it is worth it," said Wells, noting that early participants who took this benefit were following up with their doctors more often and taking more proactive measures in improving their health.

Wells also advises states and other employers to develop any wellness initiatives gradually. "You don't have to shoot for the moon and stars in the beginning," said Wells.

It’s also important to brand your program to help employees and other participants recognize the program. "Develop a slogan and stick with it," said Wells.

For more on wellness programs, please visit these NCSL webpages:

http://www.ncsl.org/programs/health/WellnessOverview.htm

http://www.ncsl.org/programs/health/stateemploy.htm#wellness

Also see this LegisBrief and this State Legislatures Magazine article

And contact NCSL’s Amy Winterfeld

(303) 364-7700, ext. 1544

amy.winterfeld@ncsl.org