Rising healthcare spending is prompting companies to implement health promotion programs for their employees to reduce health cost. Several... Show moreRising healthcare spending is prompting companies to implement health promotion programs for their employees to reduce health cost. Several studies have indicated that workplace health promotion programs do not always improve employee wellbeing or reduce company healthcare cost. Focus on short-term financial results rather than long-term employee health behavior and ineffective use of incentives have been blamed for this failure.The main goal of this research is to introduce a wellness program and incentive plan with focus on changing long-term employee health behavior so it would lead to sustainable improvement in productivity and reduction in healthcare cost. The proposed program includes multiple yearly wellness follow up events, along with wellness and fitness data collection questionnaires for timely feedback and diversified outcome-based incentives. Regression models are developed to provide estimates of biometric data that are critical to performance feedback and for estimating healthcare cost savings.The proposed wellness program is currently being tested at a 700-employee lighting company in southeast united states. The healthcare cost models estimate a return on investment of $1.8 for every dollar spent on the program. Show less
