KHN: Kaiser Health News

NEWS

Columns

Video

BLOG

Calendar

CARTOONS

Home

Health
Reform

Medicare

Medicaid

Health
Costs

More Topics

Aging

Delivery
of Care

Health
Disparities

Health
IT

Insurance

Marketplace

Mental
Health

Politics

Public
Health

Quality

States

Uninsured

Email
Sign-up

RSS

About Us

Contact

Search

Topics:

Aging

Delivery
of Care

Health
Costs

Health
Disparities

Health
IT

Insurance

Marketplace

Medicare

Medicaid

Mental
Health

Politics

Public
Health

Quality

Health
Reform

States

Uninsured

Corporate Wellness Programs: Healthier Employees, Lower Costs

Print

Share

Email

Topics: Quality

By Jenny
Gold

KHN Staff Writer

Oct 30, 2009

Lawmakers trying to curb the rising cost of U.S. health care are eyeing the
potential of wellness and prevention programs. The workplace, where Americans
spend so much of their time, is seen as a natural place for some of these
efforts.

Johnson & Johnson, known to consumers for products such as
Band-Aids and Tylenol, is also famous among employers as leader in the field of
corporate wellness. The company launched its first such initiative in 1978.
More than thirty years later, the program has more than 80 percent of employees
participating.

Here's how it works: employees fill out a health risk
assessment survey that asks lifestyle questions – such as whether they exercise
and if they smoke. Their blood pressure and cholesterol are tested, and body
mass index is measured. If the employee is found to be in a high-risk zone for
any chronic conditions, such as pre-diabetes, they're asked to participate in
free programs and counseling to help them get healthier. As an incentive to
participate, employees are given a $500 credit toward the cost of their health
care premiums. All employees also are given access to on-site fitness centers
and programs and are offered subsidies for gym memberships.

Studies
have shown the program - called "Live for Life" - has resulted in significant
improvements in employee health as well as a reduction in company health care
costs.

Recently, Johnson & Johnson also launched a project to market
corporate wellness administration to other companies.

Dr. Fikry Isaac,
executive director of global health services at Johnson & Johnson, runs the
company's wellness program. He spoke recently with KHN's Jenny Gold about
Johnson & Johnson's program and how corporate wellness could be incorporated
into the current effort to overhaul the nation's health system. We edited the
interview.

Q: Describe what the wellness program looks like.

A:
I would describe it as a holistic approach that addresses the needs of
individuals, whether it's mental or physical needs or anything related to their
family or work. We focus on prevention and behavioral change. But we also offer
tools for people to know their health risks and numbers. What's their
cholesterol, sugar, body mass index? We offer them ways to learn [this
information] and solutions, focusing on three key areas: healthy eating, helping
people stop smoking, and we want people to be more active and really address
their health needs.

Q: If I come to the company as a new
employee and want to be part of the program, what happens?

A: You would participate in the health risk
assessment. The output is personal and confidential. Nobody else has access
to your information. We take that (and aggregate it with others'
information) and assess the health of the population in Johnson & Johnson
and target the areas of need. As part of the process, you're told of
the two or three top priorities from a health perspective that we have
solutions to. For example, if you're a smoker, we would offer you an online
digital media smoke cessation program. We would also offer you someone to give
you counseling by telephone. Or if you really want to see someone face-to-face,
we will offer you that as well. If there’s a recommendation for you to use a
pharmacological aid we will offer it to you at no cost under your health benefit
plan.

All of that is linked to a discount. In 1995, we created a program to give
you a $500 discount into your health plan upfront [if you take the health risk
assessment]. If, in the risk assessment, you are found to have some of those
risk factors and you participate in the program, you maintain the discount. If
you're healthy, you still get the discount. All employees are treated the same.

Q: How does a program that sounds like it costs a lot end up
saving money?

A: We have shown that we are impacting the bottom
line—the cost of health care delivery. We have done several peer-reviewed
studies in 2002 which looked at our program before we implemented the [discount]
approaches. Those reports show that we’ve reduced the risk factors in the
population that participated in the program. Currently, we still see ourselves
as having the healthiest employees if we compare them to the national data on
smokers, body mass index, physical activity, cholesterol, hypertension,
diabetes.

There is an impact on people's health. We saw
in 2002 that there is a $225 per employee per year reduction in health
care costs. We have seen their utilization of the health care system go down, so
if you project out to 2007, that's $400 per employee per year cost savings.

Q: Why are they using the health system less? Losing weight and
stopping smoking seem more like  long-term changes.

A: You start to see results within the first two years, but the
optimal results you see in year three and four. It's worth the investment. The
bottom line is that we track our per capita health care cost trends over the
years. Our per capita health care cost over the past 10 years has been 1 to 2
percent below the benchmark, which are the groups that compare to J&J health
plan offerings.

Q: You're in Washington, D.C., to meet with
congressional staff about these corporate efforts. What will you say?

A: I would like to see that there is something in the reform
bills encouraging employers -- whether small, medium-size or large -- to really
address the culture of health within their population, because that is really a
reflection on how their business will be successful in the future. It's a good
investment and good business.

Q: How would you like to see that
done?

I'd like some recognition for employers of any size
that if they implement those types of comprehensive health and wellness
prevention programs and offer them to employees, they should get some sort of a
tax credit, for example. That would be very advantageous.

Related Content

Daily Report:

Long
Term Care Facilities Receive Increased Scrutiny

Mar 09

Daily Report:

American
Cancer Society Stresses Importance Of Educating Patients To Risk Of Prostate
Screening

Mar 05

Most Popular

Viewed

Senate
Passes Extension Of COBRA And Other Unemployment Benefits »

Under
Health Reform, Medicaid Would Cover Many Childless Adults »

Bunny's
Last Days: When Living Will Isn't Enough »

How
Blue Cross Became Part Of A Dysfunctional Health Care System »

Five
Questions About President Obama's Proposed Changes To The Medicare Payroll
Tax »

Emailed

How
Blue Cross Became Part Of A Dysfunctional Health Care System »

Bunny's
Last Days: When Living Will Isn't Enough »

Catholic
Directive May Thwart End-Of-Life Wishes »

Under
Health Reform, Medicaid Would Cover Many Childless Adults »

Popular
But Ineffective: Repealing Insurers' Antitrust Exemption »

Searched

Costly
Drugs Known as Biologics Prompt Exclusivity Debate »

Tulsa
Hospital Gives Medicare Patients Cash Back For Surgery »

Innovative
Alaska Health Plan Outperforms Many Others in Lower 48  »

Medicare
Experiments To Curb Costs Seldom Implemented on a Broad Scale
»

Transcript:
White House Health Summit, Afternoon Session  »

© 2010 Henry J. Kaiser Family Foundation. All rights reserved.

About Us

Contact

RSS

FAQ

Widgets