Employer response and
possible implications for
workplace policy
National Health Policy
Conference
Obesity: Strategies to combat
the epidemic
January 29, 2004
WWW.WATSONWYATT.COM
Financial picture of consumer health
behavior
Low
Risk
Moderate
Risk
High
Risk
Acute
Conditions
Chronic
Disease
Catastrophic
Illness
30%
66%
4%
Missed Opportunity
15%
35%
50%
50%
Less than $1,000
Maintain Health
1
Greater than $10,000
Manage Health
$1,000 to $9,999
Improve Health
Health influences more than medical
costs in the workplace
2

Medical costs account for less than half of the total health and
productivity-related costs.

Other health-related expenses include:
–
Absenteeism from work
–
Disability program use
–
Workers’ compensation program costs
–
Turnover
–
Family medical leave
–
Presenteeism (on-the-job productivity losses)
Employers are beginning to link
health and work performance
Health Variable
Effect on
Performance
Moderate physical
activity
Quality of work
performed
Improvement
Moderate physical
activity
Overall job performance
Improvement
Cardiorespiratory fitness Overall job performance
Improvement
Cardiorespiratory fitness Extra effort exerted
Improvement
BMI (obesity > 30 and <
40 kg/m2)
BMI (obesity > 40 kg/m2)
3
Work Variable
Source: N. Pronk,et al, JOEM, 2004
Getting along with
coworkers
Decrement
Work loss days
Decrement
The sense of urgency is real!
4

Health care costs are on target to double in five years or less.

Employers are giving serious consideration to redirecting funding
toward health and productivity improvement programs, which:
–
Reduce health care use
–
Moderate cost increases
–
Reduce illness absenteeism
–
Improve work performance
Obesity at the Workplace: Potential
Policies and Implications

5
Three categories of policies to provoke discussion today
–
Easy, That’s a “No Brainer”
–
Difficult but Achievable
–
Are You Crazy!
Easy, That’s a “No Brainer”
All onsite vending machines and food service providers have
lower cost healthier alternatives
Pros
6

Easy to implement with vendors

Choice is still available

Makes visible change in work
environment
Cons

May have to subsidize cost
difference
Easy, That’s a “No Brainer”
Obesity prevention education is mandated as part of annual
safety training requirements
Pros
7

Integrates into an existing
program and training structure

Shows how obesity impacts both
worker and co-worker safety
Cons

May eliminate an established
safety training topic
Difficult, but Achievable
Employer health care benefit plans cover both prevention and
treatment of overweight and obesity
Pros
8

Treats obesity like any other
disease

Focuses on both prevention and
treatment
Cons

Health care cost trends are on
the rise many employers may be
reluctant to increase coverage

Investment dollars for prevention
Difficult, but Achievable
Mandate two 10-minute physical activity breaks
during the work day
Pros

Works physical activity into the
work environment

Increases physical activity levels
of sedentary employees

9
Visible activity at the workplace
Cons

Employees may view break time
as “their” time and they can do
what they want

Enforcement and consequences
for not participating
Are You CRAZY!
Institute medical plan premium differentials (like smoker,
non-smoker) using healthy weight versus overweight/obesity
10
Are You CRAZY!
Being at a healthy weight and meeting physical activity
requirements becomes part of the equation in determining gain
sharing, bonuses and variable compensation but not base salary.
Health is part of overall performance and is measured.
11
Employers who focus on solutions to
improve health and productivity
understand. . .

Employees don’t get and stay healthy by chance.

Keeping workers healthy requires new approaches.

Maintaining a healthy workforce means investing hard dollars.

Not everything that counts is countable.

The bottom line is the bottom line and every business investment
MUST have a return.
Source: WELCOA, 2002
12
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