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How Employee Wellness Programs Reduce Insurance Costs

Healthcare costs continue to escalate from year to year with little sign of stopping, at least on the average. There are ways to make sure you’ve lowered your cost of coverage as much as possible without cutting corners, though. One of the most time tested is through encouraging the habits and practices that keep people healthy, so there are fewer claims from your insured group and therefore lower costs for insurance. So what makes employee wellness programs so effective?

Prevention for Reduced Risk

Wellness practices work as preventative healthcare alongside regular physicals and other key methods of tracking health. Staying on top of changes and exercising regularly to maintain muscular and circulatory health are important steps to build day to day stamina. More importantly, though, exercise and proper diet reduce chronic illness overall, even in those who already manage it. As a result, companies with high participation in wellness programs tend to have much lower coverage costs.

Healthy Employees Are Productive

Reducing claims and insurance costs can be a big incentive to embrace employee wellness programs, but it is hardly the only one. Not only are your recruitment and retention efforts likely to be more effective with robust support for employee wellness alongside competitive and low cost benefits, your productivity gets a boost. The healthier your workforce, the less employees tend to deal with physical and mental barriers to productivity and happiness. That helps you raise revenues even as it cuts insurance costs.