Weighing In. At Work for You. How Workplace Wellness Programs Can Benefit Your Business Bottom Line. copperpoint.com

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1 Weighing In How Workplace Wellness Programs Can Benefit Your Business Bottom Line copperpoint.com At Work for You

2 Data from the National Council on Compensation Insurance (NCCI) show obesity is a major driver of higher medical care costs for workers compensation claims. According to the research, medical costs per 100 full-time equivalent employees are nearly seven times higher for the morbidly obese than they are for employees of recommended weight. Obesity In The Workplace Is Costing Businesses Money Workers compensation insurance claims covering obese workers exceed $73 billion annually, and morbidly obese workers file 45 percent more claims than regular workers. Morbidly obese is considered if the individual: Is more than 100 pounds over ideal body weight Has a Body Mass Index (BMI) of more than 40 Has a BMI of more than 35 and is experiencing severe negative health effects, such as high blood pressure or diabetes, related to being severely overweight Is unable to achieve a healthy body weight for a sustained period of time, even through medically supervised dieting

3 NCCI s report shows that obese workers account for 61 percent of all employer workers compensation costs, even though they represent only 37 percent of the overall obese population. Workers compensation claims filed by obese workers take longer to resolve because the types and nature of injuries sustained by obese workers are more likely to result in permanent disabilities or the injuries take longer to heal. These factors drive workers compensation insurance costs higher. More Than Workers Comp Obesity in the workplace hits more than workers compensation claims. It also affects the regular healthcare that insurance companies provide to their employees. Here s why: Obesity can lead to lower self-esteem, depression and discomfort in social situations. It also can increase a person s risk for diabetes, heart disease, hypertension, metabolic syndrome and polycystic ovary syndrome. Any of these may increase the number of doctor s visits a worker needs, as well as the amount of prescription drugs he/she may need to control the conditions. The Centers for Disease Control and Prevention (CDC) reports the percentage of the population considered obese increased from 12 percent in 1990 to more than 26 percent in By the year 2020, should the trend continue, 40 percent of men and 43 percent of women are predicted to be obese. It is why the CDC launched its LEAN Works! A Workplace Obesity Prevention Program on its website, 3

4 When visiting the LEAN Works! website, employers can use a tool that helps them calculate the cost of obesity to their organization. For example, one Arizona company with more than 350 employees but fewer than 400 used the calculator and learned that obese employees were costing it $273,800 in medical costs and an additional $106,600 in loss time costs. That s a total of $380,400 annually. Based on those figures, the average annual cost per obese employee is $1,522. Promote Better Health Carefully CopperPoint is concerned about this trend and its impact on employers healthcare and workers compensation costs. That is why we support business owners who promote healthy behaviors in their workplaces, and we encourage businesses to consider launching a workplace wellness program. However, while implementing a wellness program to improve employees health seems like the ideal way to do something good for your employees and to help lower healthcare and workers compensation costs, caution must be taken to keep you from getting into legal trouble. A company s wellness program must be crafted carefully to avoid clashing with state and federal laws that address disabilities, discrimination and privacy.

5 The Equal Employment Opportunity Commission (EEOC) provides guidance to employers to comply with the Americans with Disabilities Act (ADA) about voluntary wellness programs. Another important part of the equation to consider is the federal Health Insurance Portability and Accountability Act, also known as HIPAA. This measure identifies the factors a company may use to determine group health plan eligibility and which factors permit discounts on premiums, co-payments or deductible adjustments for employees who participate in only bona fide wellness programs as defined by proposed regulations. Confidentiality of medical information collected is crucial under various laws, so be sure your legal counsel reviews the wellness program you create to keep you within legal guidelines and out of hot water. Simple Changes In the meantime, there are some things you can do to promote simple behavioral changes from encouraging daily exercise to eating more nutritiously. For example, ways to get started could include: Clean out the vending machines. Get rid of the candy bars and replace them with healthier snacks. Invest in pedometers. For a small price, you can offer these to your employees. Encourage workers to keep track of the number of steps they take daily. (Your company s health insurance provider may actually offer pedometers free.) Healthy challenge. Consider companywide healthy challenges with incentives for employees. 5

6 Offer Health-Risk Assessments. Employees may find they are at risk and can take steps to head off health threats. Your company s insurance company or a third-party vendor may be able to provide personal online assessments based on a user s family health history, eating habits and physical activity. (Be sure to consult your legal advisor when seeking any type of medical information, including family history.) Communicate Food Facts. Create a pocket guide that shows the number of calories certain foods have to help employees make informed decisions; there also are a number of websites that provide similar nutritional information. Review Claims. When it s time to renew your company s health insurance, review your claims data for trends plaguing your employees, such as high blood pressure. Then consider bringing in speakers to talk about blood pressure management or screeners from a local hospital or clinic. Make It Fun. A company-implemented wellness program should encourage employees to take care of their health; they should not feel threatened by it.

7 ARE YOU AT A HEALTHY WEIGHT? WHAT IS YOUR BODY MASS INDEX? BMI=(Weight in pounds/height in inches) X 703 Weight in Pounds Underweight Healthy Weight Overweight Obese Note: This chart is for adults (aged 20 years and older). *Source: 7

8 CopperPoint is committed to providing workers compensation insurance expertise along with great customer service. Financially strong and service oriented, CopperPoint delivers Peace of Mind. Visit copperpoint.com for many of our services, including payroll and injury reporting, a Preferred Connection Network directory, as well as free safety videos and materials. Put CopperPoint to work for you. Contact Us Contact Center or CopperPoint Home Office 3030 N 3rd Street Phoenix AZ CopperPoint customers across Arizona can contact CopperPoint through the phone numbers listed above. Office & Business Hours: CopperPoint customer service representatives are available to assist policyholders 8 a.m. 5 p.m., Monday Friday. If you have a question outside business hours, ask@copperpoint.com. copperpoint.com A.M. Best assigned CopperPoint and its subsidiaries an A- Excellent XII with a stable outlook 2015 CopperPoint Insurance Companies. All rights reserved. This publication is produced by CopperPoint and may be used by its subsidiaries and affiliate companies. All rights to reproduce and distribute this material, and to license the distribution of this material, remain the sole property of CopperPoint. LC