By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    Top 4 traits every healthcare provider should have
    Top 4 Traits Every Healthcare Provider Should Have
    January 3, 2023
    The Link Between Job-Related Stress and Substance Abuse
    The Link Between Job-Related Stress and Substance Abuse
    March 2, 2023
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    Latest News
    Clean Your Mattress Properly to Avoid Common Health Issues
    March 29, 2023
    5 Benefits Of HIPAA-Compliant Answering Services
    March 28, 2023
    3 Ways To Deal With Health Issues In Cities With High Pollution
    March 22, 2023
    What Tools Should Your Caregiver Have?
    March 22, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    OMB: Growth in Medicare, Medicaid Spending to Decrease over Next Decade
    September 4, 2011
    It’s National Nurses Week. Check Your Nursing IQ.
    May 8, 2012
    American Ambivalence Towards Health Care Costs
    October 3, 2011
    Latest News
    What Are Bioidentical Hormones Made With?
    March 23, 2023
    Cover Medical Costs of Child Dog Bites with Legal Specialists
    March 23, 2023
    3 Ways to Improve the U.S. Healthcare System By 2030
    March 14, 2023
    6 Steps To Ensure Speed And Efficiency Of Clinical Studies
    March 14, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: RAND Corporation (Briefly) Publishes Sobering Report On Workplace Wellness Programs
Share
Sign In
Notification Show More
Latest News
healthy travel tips when visiting Australia
7 Essential Tips to Stay Safe and Healthy Visiting Australia
News
health risks of dirty mattress
Clean Your Mattress Properly to Avoid Common Health Issues
Health
eligble for NDIS?
Are You Eligible For NDIS? How To Apply
News
upgrade to your nursing career
4 Pertinent Ways to Upgrade Your Nursing Career
Nursing
career in nursing
8 Keys to A Fulfilling & Successful Career in Nursing
Career
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > RAND Corporation (Briefly) Publishes Sobering Report On Workplace Wellness Programs
BusinessWellness

RAND Corporation (Briefly) Publishes Sobering Report On Workplace Wellness Programs

Dan Munro
Last updated: 2013/06/09 at 7:26 AM
Dan Munro
Share
6 Min Read
Image
SHARE

Image

(Editor’s note: Dan Munro writes for Forbes.com under the heading, “HealthCare Compass”)

Image

(Editor’s note: Dan Munro writes for Forbes.com under the heading, “HealthCare Compass”)

More Read

poor sleep disorder

How To Combat Poor Sleep Without Medication

How Diet and Exercise Can Boost Your Mood
How HRV Can Help You Monitor Your Health and Wellbeing
Medical Weight Loss – What is it and Does it Work?
Best Practices for Healthcare Call Centers Should Follow in 2023

For a short period of time last Friday, the RAND Corporation’s much anticipated final report on Workplace Wellness was available online. At least Reuters managed to snag a copy before RAND withdrew it. RAND’s website now says:

“This document was posted in error and has been withdrawn pending completion of contractual obligations to the project sponsor.”

The congressionally mandated report was first delivered by RAND to the U.S. Department of Labor and the Department of Health and Human Services last fall. The public unveiling of the report has been much anticipated ever since. An initial assessment of RAND’s report was provided by Reuters on Friday (here) and makes it easy to see why there’s so much angst around the release. In general, the $6 billion a year Workplace Wellness industry isn’t effective either clinically or financially.

A brief summary (as provided by Reuters) included these findings by RAND:

* Participants lost an average of only 1 pound a year for 3 years
* No significant reductions in total cholesterol levels
* Some evidence of successful smoking cessation – but only “in the short term”
* Statistically insignificant cost savings of $2.38/mo (year 1) and $3.46 (year 5)
* Statistically insignificant reduction in cost or use of emergency department or hospital care

Under the Affordable Care Act, employers are allowed to reward employees that participate in a wellness program with subsidies that equal 30% of the cost of insurance premiums – but only if the wellness program successfully lowers an employers overall healthcare costs. If it doesn’t lower those costs (as the RAND study now suggests), the employer has 3 choices.

1) Simply absorb the full cost outright
2) Raise healthcare premiums across the board
3) Raise premiums on those who don’t participate in the wellness program

Wellness vendors often claim high rates of return (3-10X is common), but that isn’t supported by the RAND analysis. For the report, RAND sourced data from about 600 employers (with 50 employees or more) and also analyzed medical claims data from the Care Continuum Alliance (a trade association for the health and wellness industry). The final verdict by RAND? Any cost savings were statistically insignificant.

Employers are often equally bullish on wellness programs – but few have any scientific data to support all the rosy projections. According to RAND, only 44% of companies that use a workplace wellness program have even evaluated the program – and only 2% had detailed savings estimates.

According to Reuters, the Workplace Wellness industry is about $6 billion annually and includes an estimated 500 vendors selling programs either individually or as an optional component of healthcare insurance. The hidden reality is that the programs themselves are lucrative and a relatively easy sell into an increasingly health-conscious culture. The challenge is that the scientific evidence to support real efficacy just isn’t there. The lack of any real evidence also extends beyond just the RAND study. According to Reuters:

This year researchers at the University of California conducted an analysis of dozens of existing studies of workplace wellness programs at the behest of the California state senate. Based on gold-standard studies, similar to those that evaluate a new drug, participating in work-based wellness programs does not lower blood pressure, blood sugar or cholesterol and rarely leads to weight loss, said Janet Coffman, a health policy expert at the University of California, San Francisco, Institute for Health Policy Studies. “Even in studies that found statistically significant weight loss, it was not always sustained,” she said.

That doesn’t seem to change their increasing popularity – and many employers still argue that they’re an effective tool for recruiting and then retaining high-caliber employees. That’s not an argument that works for Tom Emerick (president of Emerick Consulting and former Vice President of Global Benefits at Wal-Mart ).

“I’ve interviewed hundreds if not thousands of executives over my career and observed certain trends.  With some understandable exceptions, the ones that  spent the most time on minute details of the health and wellness plans tended to turn out to be “C” players and were often the first to go in the next 10% staff reduction. “A” players, the ones who were most successful later on, didn’t spend much time dissecting the health plans but rather spent their time asking about things like company culture. In my opinion, employees you recruit and retain by your wellness program may be the wrong employees.”

Turns out that having a real impact on health and healthcare costs is a much bigger nut to crack than just adding a wellness program. Safe to say that challenge extends to include the public release of a report that proves it.

==================
UPDATE – 5/30/2013:
 The 165 page report by RAND Corporation is now available online as a 2MB PDF here. The biggest single takeaway (page xix) remains: 

“Our statistical analyses suggest that participation in a wellness program over five years is associated with a trend toward lower health care costs and decreasing health care use. We estimate the average annual difference to be $157, but the change is not statistically significant.”

Original Post
 
 
If you liked the topic of this post, you will LOVE our upcoming webinar on self-monitoring for health: Register Now!
Image
 


TAGGED: workplace wellness

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Dan Munro June 9, 2013
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Image The Financial Hardship of Cancer
Next Article Image The New (Old) Family Doctor: Cheaper, Better Care Without Insurance

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

healthy travel tips when visiting Australia
7 Essential Tips to Stay Safe and Healthy Visiting Australia
News March 29, 2023
health risks of dirty mattress
Clean Your Mattress Properly to Avoid Common Health Issues
Health March 29, 2023
eligble for NDIS?
Are You Eligible For NDIS? How To Apply
News March 29, 2023
upgrade to your nursing career
4 Pertinent Ways to Upgrade Your Nursing Career
Nursing March 29, 2023

You Might also Like

health risks of dirty mattress
Health

Clean Your Mattress Properly to Avoid Common Health Issues

March 29, 2023
relation between Trauma and Chronic Pain
NewsWellness

Understanding the Relationship Between Trauma and Chronic Pain

March 28, 2023
The Best Natural Sleep Remedies & Aids
Wellness

The Best Natural Sleep Remedies & Aids

March 23, 2023
boost body energy level
Wellness

The Best Natural Ways to Boost Your Body Energy & Focus

March 22, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?