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Wellness Reduces Chronic Costs

Corporate wellness programs may reduce some healthcare costs but not others, says a RAND Corporation study. ‘Managing Manifest Diseases, But Not Health Risks, Saved PepsiCo Money Over Seven Years’ finds that while workplace wellness programs can lower healthcare costs in workers with chronic diseases, parts of the programs that encourage workers to adopt healthier lifestyles may not necessarily reduce health costs or lead to lower net savings. A large employee wellness program offered by PepsiCo showed that efforts to help employees manage chronic illnesses saved $3.78 in healthcare costs for every $1 invested in the effort. However, lifestyle management components, which encouraged healthy living, did not deliver returns higher than the program costs.

Courtesy of Benefits and Pensions Monitor website News Alerts

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