The WSJ released an article today, "When Your Boss Makes you Pay for Being Fat." The story depicts one example from Michelin North America Inc., but with rising healthcare costs and poor results seen from voluntary company health programs, starting next year we could see a great shift in company health benefits. Michelin is requiring employees to share their personal health information, which includes BMI, blood pressure, blood-sugar level, and cholesterol. If employees do not wish to participate they may face higher premiums or deductibles.
Because the cost of healthcare to employers is so dependent on the employees the insure, I completely understand why companies are looking for new ways to motivate their employees to adapt a healthier lifestyle. Studies have shown that people respond more so to potential losses or penalties than they do to expected gains or rewards, meaning it is actually better to ignite a bit of "tough love." The article states that corporate spending on healthcare is expected to reach about $12,136 per employees this year, which is a big chunk of change.
Employee reward programs will shift sharing additional incentives for employees dedicated to improving their health to a none negotiable. Some companies would motivate employees with deductibles, like the list below. According to chief medical officer for national accounts at Cigna, companies tie between 5% and 10% of employee premium costs to incentives, which will likely increase in the next few years.
Health Costs
How your shape can weigh on your wallet.
$652
Additional amount that General Electric employees who self-identify as smokers must pay for health care each year.
$1,000
Penalty that Honeywell is adding for workers who get certain types of surgery without seeking more input.
$600
Annual penalty CVS employees must pay if they fail to report their weight, body fat and cholesterol levels to the company's benefits firm.
$100
Monthly penalty that Mohawk Industries charges employees who don't participate in a health-risk assessment.
$1,000
Maximum additional amount Michelin employees with high blood pressure or large waistlines could pay for health care.
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