Wellness Based Health Insurance Plans

While employers and employees struggle to find ways to lower the costs of medical insurance without reducing or cutting benefits, a new option is increasing in popularity – so called Wellness Based health plans.

These programs are designed to reduce the costs of health plans, making more affordable health insurance premiums for both employers and employees by effectively demanding that employees stay healthy. These type of health insurance plans are ideal for companies that have a vested interest in their employees, do not have a high turnover, and see their employees as assets.

For example Marathon Health Co is an insurance provider that considers itself a wellness company. It offers low-cost group health insurance options to businesses, whose lowest premiums are predicated on employees’ doing what it takes to maintain good health, such as losing weight, quitting smoking, maintaining low levels of blood sugar, reducing blood pressure, and lowering cholesterol. Marathon has said that companies that get involved in their program have reduced costs by as much as $50.00 per employee per month.

Similarly in the state of Rhode Island, its Health Commissioner recently created a wellness driven healthcare insurance plan. Under the program employers in the state were able to offer workers health benefits that included, free annual checkups, immunizations, and 90% coverage for hospital care, all for around $300.00 month with only a $750.00 deductible.

In Seattle, the well-known brokerage firm ClearPoint found that wellness-contingent health insurance kept healthcare cost increases per employee down to the single digits this past year, as opposed to what in previous years have been double digit increases.

Such wellness programs have added benefits besides providing affordable health insurance premiums for employers and employees. The programs keep employees happier and healthier, and happier healthier employees are more productive employees. And let us not forget that saving money on premiums and increased productivity from workers means bigger profits for companies, and that often means bonuses and incentives for employees to stay in the program and with the firm.