Title: Tackling Healthcare Costs and Employee Wellness in the Workplace: Three Strategies
In my experience, traditional health benefits are no longer enough to cater to the evolving needs of the modern workforce. As healthcare costs soar and the economic landscape shifts, businesses are faced with the challenge of prioritizing employee well-being while safeguarding financial sustainability.
By focusing on health equity and maximizing the return on investment of benefit dollars, companies can create a healthier, more productive workforce and gain a competitive edge. In this article, I will explore how businesses can utilize strategic benefits to foster a more equitable and sustainable wellness ecosystem.
Towards a Healthier Workforce
The Commonwealth Fund’s 2024 Biennial Health Insurance Survey revealed that nearly one in four U.S. adults are underinsured. Facing high out-of-pocket costs and deductibles, many are forced to skip needed care or take on medical debt even with healthcare coverage. Delaying care has dire health consequences, with 57% of working-age adults reporting worsening health problems after a cost-related delay in care.
Recognizing the strategic imperative of an optimal health future, forward-thinking leaders understand that a people-centered approach to healthcare is crucial. By prioritizing preventative care and fostering a culture of wellness, organizations can empower employees to take control of their health journeys.
The Importance of Health Equity
Health is not just the absence of illness; it's a dynamic state of well-being influenced by a multitude of factors, including genetics, lifestyle, environment, and social determinants. Investing in employee well-being translates directly to reduced healthcare costs, increased productivity, and a more engaged workforce. This results in lower absenteeism, higher retention rates, and a stronger employer brand—ultimately driving profitability and long-term growth.
For every employee to have the resources and support they need to be healthy and productive, employers must break down barriers preventing certain groups from thriving. These groups may be based on race, ethnicity, socioeconomic status, gender, sexual orientation, disability, or geography.
Strategic Benefits for Health Equity and Sustained Well-being
Strategy-focused employers can enhance traditional health plans by integrating tailored lifestyle perks, wellness programs, or stipends for alternative healthcare options. Here's a guide to these offerings:
Lifestyle Spending Accounts (LSAs)
LSAs offer employees flexibility and choice in covering health-related expenses while addressing the unique needs and preferences of individuals. This can lead to improved engagement and well-being, enabling employees to prioritize their mental health, childcare, healthy food access, or fitness classes. For example, an employee dealing with high childcare costs can use LSA funds to address these expenses.
Ensuring equal accessibility to all employees, this approach helps promote health equity by addressing the diverse needs of the workforce. Employees facing systemic barriers to healthcare can utilize LSAs to access culturally competent providers and specialized care, directly addressing social and economic disparities impacting their health.
Wellness Programs (On-Site or Virtual)
Comprehensive wellness programs, such as nutrition education, fitness classes, mental health workshops, and on-site health screenings, empower employees to prioritize their well-being and reduce health disparities. They create an equitable and supportive workplace environment for all.
Virtual platforms like Headspace, Talkspace, Les Mills, or Wellbeats provide accessible resources for employees, whether in-office, remote, or hybrid. Wearable devices like Garmin and Fitbit offer health, movement, sleep, and stress tracking for well-being challenges, including wheelchair mode for employees with mobility challenges.
Wellness programs can complement traditional healthcare plans by offering incentives for proactive well-being efforts, effective disease management, and preventative care, significantly enhancing their value.
Rewards and Recognition
Empower employees to thrive with a comprehensive wellness rewards program. Incentivize healthy habits including movement, mindfulness practices, and nutritious eating through points, rewards, and recognition. Establishing well-being and fitness programs that engage employees in team and company challenges, while personalizing experiences, fosters a strong sense of community and encourages active participation.
Building a Healthier Workforce
Promoting a holistic approach that focuses on well-being, equitable healthcare access, and informed health decision-making is vital. Organizations can prioritize employee health equity by utilizing resources like data-driven health equity strategies, comprehensive mental health support, flexible work models, and financial wellness programs.
By implementing strategic benefits, companies can support equitable well-being, attract and retain top talent, reduce burnout, and lower healthcare costs in the long run.
In this context, Alex Shubat, a forward-thinking leader, recognized the importance of implementing strategic benefits to foster health equity and sustained well-being within their organization. Shubat's approach included integrating Lifestyle Spending Accounts, comprehensive wellness programs, and rewards and recognition systems, ensuring every employee had the resources and support needed for optimal health and productivity.
