Employees, in turn, may see both monetary and wellness-related returns. Some corporate executives have approached health and wellness initiatives from an increasingly proactive angle, with an added emphasis on helping employees stay fit with the hopes they will require less medical attention.
Others have tried different strategies to corral healthcare expenses. In many cases, using advanced screening technology provides a clearer picture of employees' overall health. This information has to potential to reshape the way healthcare benefits are administered.
Target Buys 300,000 Fitbits for Employees
In an effort to improve employee health, retailer Target will be providing 300,000 employees with Fitbit brand activity trackers, as well as offering extra discounts on fruits and vegetables, said Jodee Kozlak, Target's chief human resources officer.
For customers, more granola bars, rather than candy bars, will be available in the grab-and-go cash register shelves, according to a Journal Star article. "Target is trying to reinvent its image as a promoter of wellness for employees and customers under its new CEO Brian Cornell, who came on board in August 2014. The move mirrors a similar strategy adopted by drugstore chain CVS, which stopped selling cigarettes and changed its corporate name to CVS Health Corp. as part of a plan to become known as a health brand."
Target is even sponsoring a Fitbit challenge for employees to try to win a $1 million donation to the charity of their choice.
Others Have Already Found Biometric Success
Williams Cos., an energy company that was rated one of the most admired, by way of a Fortune ranking, is one of many companies utilizing employee health metrics to encourage overall wellness. The company was able to cap increases for medical-claims costs at 1.8% annually, well below industry average, due in part to a partnership with Limeade, a company that tracks biometric data, according to an article in Fortune.
Employee engagement in the Williams’ program has grown to 60% this year, up from 20% in 2014. Employees who meet certain goals can receive up to $300 off next year’s insurance premiums.
Jiff CEO Derek Newell, whose company recently tripled the number of employees using preventive health measures summed up their impact on the future of corporate health culture. “This is the next wave of human capital management,” he said in the article.
A Delicate Balance
Biometrics may soon be the norm. Some companies are raising the standards for employees to be eligible for health-related incentives, said Tracy Watts, senior partner at human resources consultant Mercer. Employers may offer cash, health savings account deposits, and relaxed premiums if employees fill out a health risk assessment.
However, the advanced biometric screenings are becoming an increasingly popular requirement. They can measure blood sugar, blood pressure and cholesterol levels, according to an NPR article.
Especially during open enrollment periods, employees will have opportunities to evaluate different coverage options. Some of the changes companies are making could make substantial impacts on costs and coverage. Companies have limited the perks associated with favorable results from biometric screenings, which may cause family and spouse premiums to rise.
"If employee-only coverage is going up 5%, coverage for the spouse and maybe the family is going up 10%," says Randall Abbott, a senior consultant at Towers Watson, the story reads. Further, employees are encouraged to be mindful of how specialty prescriptions are treated when evaluating insurance plans offered through employers as well as the possibility of greater employee cost-contributions in preparation of a scheduled 2018 excise tax.