Wellness Programs: A $6 Billion Sham?


Rodney Warner
Rodney Warner

A “wellness program” is a program by an employer often sold as a way to make employees healthier by offering them incentives to lose weight or stop destructive habits like smoking. They’re also a way to shift more of the costs of health care onto some of us who aren’t the most healthy, like those being treated for cancer or dealing with its after effects. There’s mounting evidence these programs are really just a sham.

The Rand Corporation estimates 85% of companies with more than 1,000 employees have some kind of wellness initiative, according to the business magazine Fast Company. These businesses have created a $6 billion wellness industrial complex covering many aspects of employee health.

  • There are monetary incentives to encourage employees to quit smoking or to control their cholesterol.
  • There are penalties for those deemed too fat, or
  • Discounts on health insurance for those who slim down.

What’s the return on the investment employers are spending on these programs? According to the Fast Company article, maybe nothing. Gallup did a survey and found only 24% of staff at companies with programs participate in them, mostly because they don’t know about them. Peer-reviewed studies show,

  • Wellness programs can be “discriminatory” because they effectively shift health care costs to people with health problems.
  • Companies don’t save on health care spending overall.
  • The Rand study, which surveyed 600 businesses with at least 500 employees each, found small reductions in health care costs, but not ones that were “statistically significant” that could be linked to the programs.

One potential fatal flaw in these programs is how they narrowly address “wellness.”

  • Does that just mean physically fit?
  • That your height and weight match certain parameters and your blood tests have certain results?
  • Can you be “well” without regard to how poorly you’re doing with your overall mental health, level of stress, social relationships and financial welfare?

How many companies with “wellness” programs,

  • To cut costs and boost profits are squeezing as much work out of people as possible with the spoken or unspoken threat that if they can’t keep up they’ll be fired?
  • On paper allow employees to take time off but as a practical matter make it difficult or impossible for that vacation time actually to be used?
  • Are reducing medical benefits and discouraging employees from getting medical treatment?
  • Allow people to take a little time off in order to take advantage of these programs, go to the gym, go to support groups that help people deal with addiction or weight problems?

How many of these companies tell their employees ‘we want you to be well’ but their actions are actually stressing them out and giving these programs only lip service? According to the article,

  • 12% of employees “strongly agree” their employer is improving their well-being.
  • 6% of all employees feel they are “thriving” across all elements of workplace well-being.

Everyone wants to be well and if your employer has one of these programs it’s certainly worth looking into, but your employer may be offering you “wellness” with one hand and taking it away with the other.

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