Most people sincerely want to do better when it comes to diet, exercise, and wellness. But you are not the only one interested in your health. Others who have a vested interest in you (and your lifestyle choices) are your employers and the government, because health care costs have skyrocketed over the last ten years. One of the best ways to minimize those costs is to get you motivated to take better care of yourself. Last month we looked at the financial consequences of bad health to your finances, this month we’ll look at your employer’s.
Employers
In 1999, the cost to provide health insurance to a single employee (not family coverage) was $318 for the employee and $1878 for the employer (total $2196). In 2015, that amount was $1071 for the employee and $5,179 for the employer ($6,251 total). As the cost of providing health care has risen, some employers have resorted to employee-incentive programs to motivate their staff to lose weight and be physically active. Ohio State University uses Your Plan for Health (YP4H). Employees participate in a range of health challenges and a biometric screening to reduce the cost of their health insurance. Unfortunately for many businesses, there’s not much financial incentive to spend money to help staff lose weight and/or improve their health because the average length of time an employee stays at a job is literally only 4-5 years. Diseases usually take much longer than that to manifest. Companies that hold on to their employees for decades, such as government offices, schools/universities, and the auto industry find it makes economic sense to financially reward their staff for taking better care of themselves.
Bottom Line
Health insurance is expensive for everyone. The average employer sponsored family plan runs right around $17,000. And that does not include costs associated with lost productivity and sick days. It’s not surprising that some companies have moved their businesses to foreign countries.
Economists at the Integrated Benefits Institute have calculated what the many layers of poor health add up to over a year’s time, and the numbers are staggering:
$232 million – medical and pharmacy expenses
$227 billion – lost productivity costs
$117 billion – wage replacement costs
Total costs for poor health = $576 billion, per year
Is it any wonder your employer wants you to be healthier??
