Wellness Ensures Savings

APPLETON -- Secura Insurance Co. has an onsite workout facility for its employees.

It's there not only as a benefit to workers who choose to be active and want a healthy lifestyle, but it also helps the company save on health insurance costs.

"It's pretty common that the less you use your insurance, the cheaper your costs will be," said William O'Brien, service manager for Network Health Plan, owned by Affinity Health System in Menasha. "(Health) insurance is a sharing mechanism."

O'Brien said in a typical company, about 20 percent of an employer-sponsored health plan's participants, mainly those younger and healthier, absorb 80 percent of the costs. A growing problem, however, is as health insurance costs rise, sometimes those who are younger and healthier choose not to enroll in their company insurance plans, opting instead to go without coverage.

"As we see more employers push costs on to their workers, younger and healthier people may not enroll and stay out of the game, and that ultimately will drive up costs for the rest of a plan's participants," O'Brien said.

A 2008 employer benefits survey by the California-based Kaiser Family Foundation found that health insurance coverage at most businesses rose 5 percent to $4,586 for individuals and $12,091 for families.

The survey suggested wellness initiatives can contribute to lowering premium costs.

The state, through the Governor's Council on Physical Fitness and Health, also encourages wellness among businesses. Companies are recognized annually by the state for implementing and maintaining wellness programs not only to encourage healthy lifestyles but improve productivity.

Though there is some investment by employers, state data suggests that $3.48 is saved per worker on health insurance costs for every $1 invested in wellness.

Besides wellness, companies that actively shop around for health care coverage may find competitive pricing.

In Secura's case, it worked with a Fox Valley broker to analyze provider rates but internally decided which coverage would work best for its employees, said Becky Doell, human resources consultant for Secura.

Secura recently wrapped up negotiations with Network Health Plan. Network Health, whose parent runs St. Elizabeth Hospital in Appleton, will be Secura's exclusive insurance provider for 2009.

About 400 of the property and casualty insurance company's 520 employees will be eligible for coverage under Network Health Plan beginning Thursday.

Doell said Secura has offered a variety of health plans in the past, but went exclusively with Network Health Plan because the company negotiated a good rate. That price was not disclosed.

"In years past, we always look at the carriers to quote us on exclusive rates, meaning they would be our only provider," Doell said. "We looked at pricing, quality care and customer service, and Network Health made us an offer that was attractive to us."

It also appealed to Secura that Network Health Plan is based in the Fox Cities and that Secura employees would have access to a local call center if they had questions about coverage.

"Their local presence was important to us," Doell said.

CUTTING HEALTH COSTS

A survey by Hewitt Associates (NYSE:HEW) , a human resources services company, found that many businesses are taking various steps to keep health insurance costs down. The survey involved about 450 companies of varying size, employing a total of 8 million people.

• 63 percent said they were increasing wellness and health education initiatives.

• 70 percent either planned to or will begin offering tools |to help employees manage their health

• 48 percent said the would offer or planned to offer |incentives to employees who participate in wellness or other health-related initiatives.

• More than 20 percent planned to offer a higher deductible health plan with a health savings account.

ON THE WEB

• Secura Insurance Co.: www.secura.net

• Network Health Plan: www.networkhealth.com

• Hewitt Associates: www.hewittassociates.com

• Governor's Council on Physical Fitness and Health: www.fitness-health.wisconsin.gov