News

News Articles

Friday, October 07, 2011

Are outcomes-based incentives the answer?

NEWS RELEASE

New white paper from StayWell Health Management
analyzes how incentives impact engagement and
outcomes in workplace health management programs

ST. PAUL, Minn. (October 7, 2011) — A growing number of employers are turning to financial incentives to increase participation in workplace health management programs with the ultimate goal of improving employee health, reducing health care costs and boosting workforce productivity. But there is debate among employers, health management vendors and policy leaders as to whether incentives are the right answer and, more
specifically, whether they produce the desired results.

A new white paper from StayWell Health Management entitled “The role of incentives in improving engagement and outcomes in population health management: An evidence-based perspective” examines these questions in light of scientific studies by leading experts and independent researchers who examined workplace health management practices and outcomes. Authored by CEO Paul Terry, Ph.D., and Senior Vice President and Chief Health Officer David Anderson, Ph.D., of StayWell Health Management, the paper is available free of charge.

Why this research matters

Annual trend studies by employee benefits consulting firms show that the use of financial incentives as a component of workplace health management programs is on the rise.

A 2010 survey by Buck Consultants showed that 62 percent of employers currently offer financial incentives and an additional 25 percent plan to offer incentives in the future.
According to a 2010 study by Mercer, 28 percent of employers offered lower health plan premiums for non-smokers in 2011 (up from 23 percent in 2010).
A Towers Watson survey revealed that in 2010, six percent of employers were considering requiring employees to achieve a specific health standard to be eligible for a preferred health plan option.
According to a study by the National Business Group on Health, incentives ranged from $50 to $1,200 in 2010, with the average incentive amount at $386.

“Employers want to do what’s right for their employees and their corporate bottom line, but we’re finding that financial incentives aren’t always the right answer and are never the entire answer,” said Terry. “There’s a time and place for financial incentives, and that’s the focus of this data analysis and white paper.”

Examining the data

In analyzing available research studies, StayWell researchers zeroed in on questions that are top of mind for employers who offer worksite health improvement programs: What are the dominant trends in the use of incentives by employers? Do incentives really influence behavior change? Are incentives safe and fair for all employees or are they discriminatory?

In addition to examining the available data on these topics, StayWell recommends a “middle ground” approach to the incentives dilemma.

“Research shows that incentives do have a role in workplace health management programs, but that sweet spot may not be where many incentives programs currently reside,” said Anderson. “Based on available research and our direct experience working with employers and individual participants, we believe there is a middle ground where incentives can be implemented in a way that is safe and fair for all employees without compromising the effectiveness and relevance for either employers or individual employees.”

A progress-based approach to incentive design

This middle ground can be found in an approach that StayWell has labeled a progress-based incentive model. Rather than just rewarding specific outcomes, a progress-based approach offers all employees an opportunity to earn incentives regardless of where they are on the health continuum. For instance, an employee who is at risk for obesity could earn an incentive for actively participating in programs that address nutrition and physical activity rather than being incented for achieving a specific body mass index (BMI).

The StayWell white paper provides a recommended framework for designing a progress-based incentive strategy that is built on the principles of safety, effectiveness, participant-centered design, timeliness and equity for all employees.

In addition to an analysis of industry research, the StayWell incentives white paper features a variety of case studies based on StayWell’s own industry-leading programs and the incentive strategies of corporations in finance and insurance, manufacturing and mining, retail, utilities and service industries.

About StayWell

StayWell Health Management, LLC, is a recognized leader in delivering comprehensive health management programs and services that help organizations maximize business results by improving employee health and productivity. Founded in 1978, StayWell Health Management is a MediMedia USA Company headquartered in St. Paul. StayWell’s programs and publications help improve the lives of millions each year. StayWell customers have received the C. Everett Koop National Health Award and more than 40 WELCOA Gold Awards for health management programs StayWell has developed. To learn more about the company, visit www.staywellhealthmanagement.com.

Media contact
Barbara Tabor, APR
651-230-9192

barbaratabor@comcast.net

WellTimes^®e-newsletter

Download our most recent
e-newsletter below, or sign up
to receive it automatically.

Download PDF