Employers Bringing Dependents into Wellness Programs

Allowing employee family members to participate in a company’s health and wellness benefit plan is not an uncommon practice, but it comes at great expense to the employer. That is because, according to University of Michigan health researcher Dr. Dee W. Edington, it generally costs more to insure dependents than it does the actual employee. One particular study by Dr. Edington’s group analyzing 21 companies that offer coverage to dependents found that the spouses’ healthcare costs alone averaged $3,738 annually – 9.7% more than their employees’ average costs. This has led to many employers instituting disincentives such as spousal surcharges to encourage spouses or domestic partners to remain off the plan if they can obtain coverage from another employer. However, many employers have found that one key to controlling their claims costs is dependent participation in their corporate wellness programs.

The National Business Group on Health estimates that nearly half of employers in the U.S. include spouses in their wellness programs, up from roughly 10% five years ago. The reasons, though, are based mainly in the concept of the family unit serving as a support group. In other words, employees are more likely to make lifestyle changes, such as weight loss or smoking cessation, if their family members are supporting them and taking part in the lifestyle change with them. Also, dependents’ participation in the process can directly affect the costs associated with covering those dependents. The challenge, though, is actually getting the family to participate.

Incenting Dependent Participation
Many employers have found that dependent participation can be influenced through various strategic incentives. For example, lowering an employee’s health insurance premiums upon his or her family’s enrollment/participation in a particular wellness initiative can be effective in some instances. Other tactics include simple gestures such as: providing paper versions of a health assessment to be mailed to the home; allowing dependents to complete biometric screenings at their doctor’s offices; or even holding health fairs during the weekends or after work so that employers can engage the family face-to-face. The key is to ensure the family understands the importance of adopting healthy lifestyles together and supporting each other through the process.

Addressing Children in Wellness
While many wellness initiatives can be aimed at employees and dependents over the age of 18, including younger children can be just as important to the program’s success. Children often imitate their parents, and setting an example of healthy living can not only address the childhood obesity epidemic and other preventable conditions, but also help the parental employee in terms of presenteeism. Parents often can be preoccupied with thoughts of their children, and when a child is sick or distressed, it can add to the distraction and even prevent the employee from being effective at work. This is why many wellness experts warn that childhood obesity is not just a major public health issue, but an accelerant to corporate healthcare costs and productivity, as well.

Finding a Starting Point
Getting dependents to participate in a corporate wellness program can be an immense task for some employers. Companies with established programs are typically in a much better position to attract dependents than are employers just starting up their wellness initiatives. For the latter, it is more important to build an established base of employee participation before going after families to participate. Regardless, it is just as important to the success of a wellness program for employees to have an equal level of support at home as in the workplace.

For more information, please click on the following links:

Employers Lure Spouses into Wellness Programs to Help Cut Costs

Not Your Parents’ Wellness Program

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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

December 4, 2009

Hill, Chesson & Woody strives to keep our clients' group decision makers abreast of trends influencing the employee benefits market. Look for Eyes on Benefits to bring you news and information affecting you and your employees.

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