Yes! Your Insurance Costs CAN Go Down
After implementing the LoneStart Wellness
Initiative, Sid Peterson Memorial Hospital
sees insurance premiums reduced by 9.1
percent.
Most experts will tell you it takes up to
five years to determine a true ROI on your
initial investment in an employee workplace
wellness program. We agree, but this doesn't
mean an employer can't expect to see results
well within that five year time frame.
Payback comes from not only decreased health
costs but decreased absenteeism, higher
retention rates and productivity, happier
workers, and in some cases, lower insurance
premiums. These all contribute to the ROI on
your employee wellness investment.
Sid Peterson Memorial Hospital in Kerrville
Texas knows this for a fact, and has seen a
significant decrease in insurance costs due
to reduced incident rates -- in less than a
year.
The hospital challenged its employees to the
63-day LoneStart Team Esteem
Challenge -- twice -- once in February of this
year, and again in June. Approximately 25
percent of the hospital's employees
participated in the LoneStart Initiative and
17 percent returned for the final weigh-in.
Yet this 17 percent has made a considerable
difference.
In the first challenge period, 96 employees
lost a total of 694 pounds and saw a decrease
in BMI of 1.43 points. In the second
challenge, 40
participants lost a total of 227.5 pounds and
saw a reduction in BMI of about 2.7 points.
And the hospital saw its insurance premiums
decrease approximately 9.1 percent.
In real
dollars, this equates to about $58 per
employee per month ($46,400), $105 per
employee and spouse, and $109 per employee
and family per month. With 800 employees,
these are significant figures.
"Admissions for six months of the year were
down by 25 percent, with length of stay (LOS)
per admission down 3 percent for the same
period. Reduced utilization, fewer claims and
reduced incident rate take the
credit for the reduction," says Pat Murray,
Hospital Administrator. "The
LoneStart Wellness Initiative encourages
people to believe that making small changes
in their normal activities can have a
beneficial impact on their overall health
status. We believe it."
"Promoting the health and well-being of all
employees and their dependents is an
important contribution to a healthy and safe
workplace," says Jeff Burdick, Senior Vice
President of Wells Fargo Benefit Services.
"Raising awareness about the importance of
good nutrition and adequate physical activity
should be a goal for all of us. It is
exciting to see the employees of Sid Peterson
Memorial Hospital take on this challenge and
see the results of their hard work, including
a reduction in their contributions towards
premium costs."
Murray says the hospital first initiated the
LoneStart Wellness Initiative as a way to
promote what the hospital is about-taking a
proactive approach to health and wellness.
And, SPMH is now taking the program out into
the community. In January, Sid Peterson
Memorial Hospital will launch the first Kerr
County LoneStart Wellness Initiative. "While
we reinforce our role as the wellness
resource in Kerr County, we are also
demonstrating that as a member of the Kerr
County business community, we have an
interest in promoting a healthy environment
for ongoing new business development," says
Murray. Jo Ann Hagemeier, MS, RD, LD, Human
Resources / Employee Wellness with Sid
Peterson Memorial Hospital, and a Certified
LoneStart Wellness Initiative Facilitator,
will explain the principles of the program at
a community-wide presentation.
With the community wellness initiative,
Hagemeier says, "we hope to achieve several
objectives, primarily to enhance Sid Peterson
Memorial Hospital's image as the healthcare
resource in Kerr County." She says too that
the hospital sees this as an opportunity to
provide a community service, to develop
relationships with area businesses, and to be
seen as a partner in improving the health of
their workers.
Jay Seifert, co founder of the LoneStart
Wellness Initiative points out that we are
all well-aware of spiraling employee health
care costs. During
the past six years, health care premiums have
increased about 87 percent. In 2006 alone,
premiums increased more than twice as fast as
wages (3.8 percent) and overall inflation
(3.5 percent). "We, and our clients, are
showing that the LoneStart Wellness
Initiative is a way to address-and
reverse-this trend."
"When Sid Peterson Memorial Hospital first
introduced the LoneStart strategy to their
employees, it was intended to help them
change their mind-set to one in which they
faced and tackled their health and wellness
issues and concerns," says Murray. "Now,
we're seeing how this not only helps us, as a
hospital, and our employees, but takes us to
the point of what we can do for our community."