Drug Education and Intervention in the Workplace

Worksite Wellness Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured on-Site health clubs and massages, and were used as recruitment tools for young employees searching for nontraditional work environments. Nonetheless, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and businesses returned to a more old-school benefit structure focused on managed healthcare.

In recent years, as Health Care costs have spiraled out of control, companies have explored the potential of Corporate Health Promotion Programs as a cost-saving strategy. Businesses such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Corporate Health Promotion Programs can help reduce the costs associated with:

Health Care premiums – The expense a corporation pays for healthcare insurance: According to a 2005 study by Hewitt, the Health Care expense per employee in the U.S. in 2006 will average $8,046, with employers absorbing nearly two-thirds of that expense.

Prescription costs – The price of a prescription drug plan: According to a 2005 study by Mercer, the average annual prescription drug costs for large companies grew 11.5%, making it nearly a decade straight of double-digit rises in cost.

Short-term disability (STD) – The cost of offering short-term disability insurance to employees: According to a 2004 study by insurance provider Cigna, the average short-term disability claim results in $13,094 in direct disability payments and medical costs. The report also found that 26% of claims related to healthcare events were a result of chronic conditions that could likely be mediated through Worksite Wellness Programs, and that these cases amount for 56% of the STD-related medical costs.

Rates of Absenteeism – The cost of missed work: Rates of Absenteeism cost employers $660 per employee in 2004, with nearly one-third of employers characterizing the trend as a serious concern.

Presenteeism – The cost associated with employees who work at decreased work rate levels: Sixty% of the total cost of employee diseases come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.

The evidence is clear that strategically designed Company Wellness Programs can decrease both direct and indirect Medical Care costs. A 2004 review of Company Wellness Programs revealed that, in total, an investment of $1 by a organization in Wellness Programming returned a median cost savings of $2.05 to $4.64.