Corporate Wellness and Effective Health Care Reform.

It is clear to virtually every American (in particular those of us in business) that health care costs are skyrocketing out of control.

No one doubts that either the market will solve the problem OR the government will impose one on us. Managed care has failed from either a cost containment or quality of care perspective.

Corporations have reached the point where the cost of providing health insurance is almost as burdensome as government regulation. It’s time for some new thinking on healthcare and its impact on company and vice versa.

Corporate wellness as an operational perspective instead of merely window dressing is one way to deal effectively with rising health care costs.

The Insurance Problem

The first step in correcting the problem is to realize that an employee’s health is their own responsibility. Expecting companys to provide unlimited medical insurance coverage is simply unrealistic and unreasonable.

It’s time for employers (on a broad scale) to reconsider their role in providing health insurance coverage. Instead of providing complete coverage for all employees through group plans, companies should start to shift the burden of health coverage to those covered.

Here is the approach. Give catastrophic medical insurance as a group benefit to all workers with a large enough deductible (say $5000 per employee) to make the cost low cost for the corporation.

Then, allow workers to buy their own medical insurance policies (based on their own needs) and pay for them through payroll deduction with pre-tax earnings.

There are numerous insurance companies that sell individual plans on this basis. Everyone wins. Workers can tailor their coverage to their own needs and circumstances using their own doctors. Businesses win by stopping the endless cycle of rising costs and ever-changing plans.

And when person become responsible for the cost of their own insurance, they become more attentive to their own health.

Besides, if an worker is interested in working for you ONLY because your corporation offers great insurance benefits are not they telling you they’re going to cost you more money in the future?

Develop a “Wellness Culture”

Our current “sickness culture” perpetuates the health care crisis and hastens the demise of market-based solutions. By ailment culture, I mean our focus on health problems in lieu of on having a healthy workplace and performance culture.

Also, what would a “wellness culture” look like? First, in lieu of paid sick days, staff members may  be rewarded at year’s end with an attendance bonus.

Workers would be reimbursed for successful completion of smoking cessation and weight-loss programs. Corporations would invest in corporate memberships at local health clubs so every staff member can participate.

Employees would be offered in-house wellness programs on a variety of issues ranging from ergonomics to stress management. Finally, businesses would commit to hiring and retaining healthful employees.

Simply put, healthy staff members cost less and are more productive than unhealthy ones. Applicants should be screened for health habits and practices that limit their productivity and increase the likelihood of future expense.

While this may seem harsh, it rewards those staff members whose personal lifestyle and habits ensure the best Return on Investment by the corporation committing to hire, train and pay them.

Be open to “alternative and complementary” approaches

Studies published in major medical journals reveal that individuals who use “alternative and complementary” health modalities (including chiropractic, acupuncture, yoga and massage) are generally healthier, better educated, take fewer medications and miss fewer days from work than the typical American.

Since these individuals look for ways to stay healthy without drugs and surgery, they end up being a net benefit for attendance and productivity. Old prejudices in this area ought to be discarded in order for companies to improve productivity and increase profitability

Conclusion

Health Care costs are increasing at a staggering pace. Managed care is an dreadful failure. Corporations are buckling underneath the pressure of providing health coverage to their employees.

American competitiveness in the market is sagging. These times call for amazing solutions. It’s time for American companies to consider some out-of-the-box solutions to the health care crisis.

Corporate wellness is an approach that is timely, achievable and reasonable given the alternatives. All choices must be considered while we still have a chance.