SlideShare a Scribd company logo
1 of 2
Download to read offline
STAFFING Q4 2008
                     AssuranceEdge
                         Helping Today’s Professionals Stay On Top of the Insurance Marketplace



                   Loss Prevention is Even More Important
                   in a Tough Economy
                       Businesses spend $170 billion a year on costs
                   associated with occupational injuries and illnesses.
                   This is money that comes straight out of company
                   profits. With a slowing economy, businesses are
                   looking for ways to trim expenses. For temporary
                   staffing companies, occupational safety and loss
                   control should not be an area to cut funding. In fact,
                   when facing a slowing economy and reduced top-line
                   revenue, the opposite is true. There are a number
                   of reasons why staffing companies should look to
                   increase efforts in the area of preventing workplace injuries when the economy slows down.
                       It has been long established that effective safety and health management practices can reduce injury costs
                   from 20%-40% annually, and these costs can become the difference between operating in the black vs. running
                   in the red. Employee injuries and illnesses increase workers’ compensation costs, absenteeism and can cause
                   incidents attributable to poor workmanship. More difficult to measure are decreases in morale and productivity.
                   Beyond the simple well known facts, what are the other reasons for increasing investment and focus in health
                   and safety initiatives right now?
                       The unemployment rate continues to climb across all sectors of the U.S. economy. One of the key factors
                   that increase an organization’s workers’ compensation expenses is the indemnity (lost time) incurred as a result
                   of injuries. When the economy slows down, many companies are forced to reduce the number of shifts they
                   operate, as well as reduce their labor force. If an employee is injured and is able to come back to light duty
                   while recovering from the injury, but the employer is unable to accommodate the employee due to reduced
                   demand for labor, the claim value will be significantly higher than what it could have been if light duty were
                   available. The only way to prevent such a scenario is to prevent the injury from occurring.
                       An additional reason to invest further in preventing losses is due to the fact that insurance carriers are
                   beginning to tighten up their underwriting guidelines. Insurance carriers essentially make money in two ways,
                   through the premiums they collect, and the investment returns they make from the premium dollars they
                   hold. With a significant decline in investment returns, insurance carriers are forced to be more conservative
                   when pricing risks. As we move into 2009, staffing companies who are proactively keeping their losses low
                   will reap the rewards of lower insurance premiums. For those that are incurring losses, it is likely that they
                   will see premium levels begin to increase incrementally as the insurance carrier community moves to a more
                   conservative underwriting philosophy.



                       In the end, the success or failure of an organization’s health and safety initiatives depend on two key
                   factors. The first being commitment from the top of the organization. If upper management believes that
                   investing in health and safety initiatives will deliver expense reductions, then embracing a culture of safety
                   will successfully flow throughout the organization. Second, you can rest assured that you don’t have to walk
                   alone in the process. Now more than ever, true Risk Management professionals can help you identify the
                   vital few loss leaders and help you craft a strategy to successfully implement
                   effective loss prevention measures. The new year will bring many challenges to
                   an organization’s profitability. However, tools are available to help executives deal
                   with the margin pressures created by a slumping economy. Gaining control of
                   your risk management expenses is possible and generating a positive return on
                   your investment is highly probable with the right Risk Management partner, and an
                   organization wide commitment to the process.
Q4 2008
Get the Most “Bang for Your Buck” with
a Wellness Program in the New Year
                                                              Your bottom line may be going up in smoke
    Research has shown that successful wellness
programs can help control health care costs for many
                                                              Consider the following:
businesses. But sometimes, implementing a wellness
                                                              •	 Smokers have a significantly higher chance of having
program seems like a difficult task that may cost more
                                                                 a stroke or coronary heart disease, which on average
money than it’s worth to many employers. However,
                                                                 cost $65,000 in medical bills in the year of the event
starting a wellness program is much easier than you
                                                                 and $30,000 for the following 2 years*
may think. And not to mention the cost benefits are
                                                              •	 Pneumonia costs $3.85 per member per month for
well worth it. If you already have a wellness program
                                                                 smokers and 96 cents for non-smokers*
or if you’re looking to start one in 2009, we’ve outlined
                                                              •	 Low-birth weight babies are much more common
two key places to focus on to get the most “bang for
                                                                 among women who smoke during pregnancy and cost
your buck”.
                                                                 $18,000 - $58,000 (for birth and the following
The high cost of obesity                                         6 months) while a normal-weight newborn costs
                                                                 $6,000 - $8,000 including prenatal care*
Consider the following:
•	 Obesity costs employers more than $12 billion each             Have you considered covering smoking cessation
   year in increased healthcare utilization, reduced          programs the way you would any other medical
   productivity, and higher absenteeism*                      procedure? As you can see from the
•	 Obesity-related disabilities cost employers an average     figures noted above, you can’t afford
   $8,720 for each claimant*                                  not to. A comprehensive and effective
•	 Among women, obesity is related to depression,             smoking cessation program usually
   another major medical claim cost driver for                costs less than 50 cents per member
   employers*                                                 per month, or less than $6 per
•	 Annual healthcare costs are 11% higher among obese         year per member. You
   vs. non-obese people*                                      will save on average
                                                              $210 annually on
    So how can you begin to reduce these costs through        health care costs
wellness programs in your workplace? Focus specifically       for each smoker
on programs aimed at helping people lose weight. Here         who quits. Smoking
are some ideas:                                               cessation programs
                                                              are inexpensive and
•	 Start a walking challenge. Over the spring and
                                                              produce both short-
   summer months, have employees pair up into groups

                                                                                                 2009
                                                              and long-term benefits
   and start tracking their miles walked with pedometers
                                                              for members, and an
   (you can purchase pedometers for $2 - $4 per
                                                              immediate impact on
   employee). At the end of the challenge, the top three
                                                              your bottom line.
   teams to walk the most miles win a prize.
•	 Switch out your vending machine or break room
                                                              * Source:
   snacks to healthier items. This option doesn’t cost
                                                                Workforce Management
   anything, as you are already paying for these items.
•	 Bring in Weight Watchers or Jenny Craig and offer to
   pay a portion of the sign-up fee. Your employees may
   even get a group discount!                                   At Assurance, we have built our reputation on
•	 Offer partial reimbursements on yearly memberships           earning our client’s trust and confidence through
   at your local gym (we suggest $50 per employee).             excellence in every interaction. Independent since
                                                                our inception in 1961, Assurance is ranked by
   Each of these ideas are easy to implement and
                                                                Business Insurance magazine among the top 75
though there is a cost to get some of them started, the
                                                                insurance brokerages in the country.
impact programs like these can have on your health
care costs will be worth it in the long run.

           For further information, please contact your Assurance representative at 847.463.7877
                                  or e-mail staffing@assuranceagency.com

             Assurance Agency, Ltd. • One Century Centre • 1750 East Golf Road • Schaumburg, Illinois 60173
                         phone 847.797.5700 • fax 847.440.9130 • www.assuranceagency.com

More Related Content

What's hot

The Impact of Dropping Your Health Plan in 2015
The Impact of Dropping Your Health Plan in 2015The Impact of Dropping Your Health Plan in 2015
The Impact of Dropping Your Health Plan in 2015CBIZ, Inc.
 
BIZGrowth Strategies - Winter 2013
BIZGrowth Strategies - Winter 2013 BIZGrowth Strategies - Winter 2013
BIZGrowth Strategies - Winter 2013 CBIZ, Inc.
 
A CPAs Guide- White Paper
A CPAs Guide- White PaperA CPAs Guide- White Paper
A CPAs Guide- White Paperkschuler
 
Incorporation for Physicians in British Columbia Canada
Incorporation for Physicians in British Columbia CanadaIncorporation for Physicians in British Columbia Canada
Incorporation for Physicians in British Columbia CanadaJohn Moore
 
Bonuses in the New Financial World - Has Anything Really Changed?
Bonuses in the New Financial World - Has Anything Really Changed?Bonuses in the New Financial World - Has Anything Really Changed?
Bonuses in the New Financial World - Has Anything Really Changed?Jon Gilligan
 
The Benefit Of Fixed Annuity
The Benefit Of Fixed AnnuityThe Benefit Of Fixed Annuity
The Benefit Of Fixed Annuityfelixortizrivera
 
Understanding the new rules GOLAJN002MAY2915
Understanding the new rules GOLAJN002MAY2915Understanding the new rules GOLAJN002MAY2915
Understanding the new rules GOLAJN002MAY2915Rodney Horin
 
Plan Design Trends in Higher Education
Plan Design Trends in Higher EducationPlan Design Trends in Higher Education
Plan Design Trends in Higher EducationMultnomah Group, Inc.
 
Should you Take Early Retirement?
Should you Take Early Retirement?Should you Take Early Retirement?
Should you Take Early Retirement?Greg Younger
 
Are Veterinarians Ready $$ For Retirement
Are Veterinarians Ready $$ For RetirementAre Veterinarians Ready $$ For Retirement
Are Veterinarians Ready $$ For Retirementmjmcgaunn
 
[ARCHIVE] Aviva Real Retirement Report Summer 2012
[ARCHIVE] Aviva Real Retirement Report Summer 2012[ARCHIVE] Aviva Real Retirement Report Summer 2012
[ARCHIVE] Aviva Real Retirement Report Summer 2012Aviva plc
 
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...NAFCU Services Corporation
 
Business Owner Insurance Planning By Mark Simon
Business Owner Insurance Planning By Mark SimonBusiness Owner Insurance Planning By Mark Simon
Business Owner Insurance Planning By Mark SimonMark L. Simon
 
Fringe Benefits
Fringe BenefitsFringe Benefits
Fringe Benefitspfaehlercr
 

What's hot (18)

The Impact of Dropping Your Health Plan in 2015
The Impact of Dropping Your Health Plan in 2015The Impact of Dropping Your Health Plan in 2015
The Impact of Dropping Your Health Plan in 2015
 
BIZGrowth Strategies - Winter 2013
BIZGrowth Strategies - Winter 2013 BIZGrowth Strategies - Winter 2013
BIZGrowth Strategies - Winter 2013
 
A CPAs Guide- White Paper
A CPAs Guide- White PaperA CPAs Guide- White Paper
A CPAs Guide- White Paper
 
Incorporation for Physicians in British Columbia Canada
Incorporation for Physicians in British Columbia CanadaIncorporation for Physicians in British Columbia Canada
Incorporation for Physicians in British Columbia Canada
 
Bonuses in the New Financial World - Has Anything Really Changed?
Bonuses in the New Financial World - Has Anything Really Changed?Bonuses in the New Financial World - Has Anything Really Changed?
Bonuses in the New Financial World - Has Anything Really Changed?
 
The Benefit Of Fixed Annuity
The Benefit Of Fixed AnnuityThe Benefit Of Fixed Annuity
The Benefit Of Fixed Annuity
 
Understanding the new rules GOLAJN002MAY2915
Understanding the new rules GOLAJN002MAY2915Understanding the new rules GOLAJN002MAY2915
Understanding the new rules GOLAJN002MAY2915
 
Ten Myths of "Say on Pay"
Ten Myths of "Say on Pay"Ten Myths of "Say on Pay"
Ten Myths of "Say on Pay"
 
Plan Design Trends in Higher Education
Plan Design Trends in Higher EducationPlan Design Trends in Higher Education
Plan Design Trends in Higher Education
 
Should you Take Early Retirement?
Should you Take Early Retirement?Should you Take Early Retirement?
Should you Take Early Retirement?
 
Are Veterinarians Ready $$ For Retirement
Are Veterinarians Ready $$ For RetirementAre Veterinarians Ready $$ For Retirement
Are Veterinarians Ready $$ For Retirement
 
Changing Landscape: Are Aging Baby Boomers Ready for Retirement?
Changing Landscape: Are Aging Baby Boomers Ready for Retirement?Changing Landscape: Are Aging Baby Boomers Ready for Retirement?
Changing Landscape: Are Aging Baby Boomers Ready for Retirement?
 
Individual 401(K)
Individual 401(K)Individual 401(K)
Individual 401(K)
 
[ARCHIVE] Aviva Real Retirement Report Summer 2012
[ARCHIVE] Aviva Real Retirement Report Summer 2012[ARCHIVE] Aviva Real Retirement Report Summer 2012
[ARCHIVE] Aviva Real Retirement Report Summer 2012
 
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...
10 Things Credit Union Executives Need to Know about Pensions and 401(k)s (We...
 
Business Owner Insurance Planning By Mark Simon
Business Owner Insurance Planning By Mark SimonBusiness Owner Insurance Planning By Mark Simon
Business Owner Insurance Planning By Mark Simon
 
Fringe Benefits
Fringe BenefitsFringe Benefits
Fringe Benefits
 
Six Steps Gatefold
Six Steps GatefoldSix Steps Gatefold
Six Steps Gatefold
 

Viewers also liked

Formas de dibujar
Formas de dibujarFormas de dibujar
Formas de dibujarGabyLuciana
 
Question 3 sasiane evaluation
Question 3 sasiane evaluationQuestion 3 sasiane evaluation
Question 3 sasiane evaluationsapphire29
 
El menyspreu al català del ministeri d'hisenda
El menyspreu al català del ministeri d'hisendaEl menyspreu al català del ministeri d'hisenda
El menyspreu al català del ministeri d'hisendacarlespuigdemont
 
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-results
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-resultsDowntown dough cookie-cutters-cupcake-cups-internet-marketing-results
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-resultsSplinternetMarketing.com
 
Rassegna stampa AdnKronos 30 marzo 2009
Rassegna stampa AdnKronos 30 marzo 2009Rassegna stampa AdnKronos 30 marzo 2009
Rassegna stampa AdnKronos 30 marzo 2009No smoking be happy
 
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologie
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologieShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologie
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologieShortPres
 

Viewers also liked (8)

Formas de dibujar
Formas de dibujarFormas de dibujar
Formas de dibujar
 
Question 3 sasiane evaluation
Question 3 sasiane evaluationQuestion 3 sasiane evaluation
Question 3 sasiane evaluation
 
El menyspreu al català del ministeri d'hisenda
El menyspreu al català del ministeri d'hisendaEl menyspreu al català del ministeri d'hisenda
El menyspreu al català del ministeri d'hisenda
 
Data recovery rankings national phrases
Data recovery rankings national phrasesData recovery rankings national phrases
Data recovery rankings national phrases
 
Hotelsourcerankings
HotelsourcerankingsHotelsourcerankings
Hotelsourcerankings
 
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-results
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-resultsDowntown dough cookie-cutters-cupcake-cups-internet-marketing-results
Downtown dough cookie-cutters-cupcake-cups-internet-marketing-results
 
Rassegna stampa AdnKronos 30 marzo 2009
Rassegna stampa AdnKronos 30 marzo 2009Rassegna stampa AdnKronos 30 marzo 2009
Rassegna stampa AdnKronos 30 marzo 2009
 
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologie
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologieShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologie
ShortPres Mobile Marketing | Pulchri voordracht sociale media en QR technologie
 

Similar to Assurance Edge Quarter 4 2008

Staffing Q1 2010
Staffing Q1 2010Staffing Q1 2010
Staffing Q1 2010kmurray1120
 
Self Funded Health Plans 101
Self Funded Health Plans 101Self Funded Health Plans 101
Self Funded Health Plans 101bjgilbert
 
Why Roundstone? We are the solution.
Why Roundstone?  We are the solution.Why Roundstone?  We are the solution.
Why Roundstone? We are the solution.Roundstone Management
 
Reducing Health Insurance Costs The Year Ahead
Reducing Health Insurance Costs   The Year AheadReducing Health Insurance Costs   The Year Ahead
Reducing Health Insurance Costs The Year Aheadcheryllagun
 
Economic Navigation And Leveraging Your Human Capital
Economic Navigation And Leveraging Your Human CapitalEconomic Navigation And Leveraging Your Human Capital
Economic Navigation And Leveraging Your Human Capitalseelkunde
 
Health Insurance - Inflationary Times
Health Insurance - Inflationary TimesHealth Insurance - Inflationary Times
Health Insurance - Inflationary TimesSBRG
 
About Beneplan - 2019
About Beneplan - 2019About Beneplan - 2019
About Beneplan - 2019Beneplan
 
How to Save Money on Group Health Insurance
How to Save Money on Group Health InsuranceHow to Save Money on Group Health Insurance
How to Save Money on Group Health InsuranceSuperAgent
 
Alz June News
Alz June NewsAlz June News
Alz June NewsAlZink55
 
Employee benefit Insurance policies guide for Indian Companies
Employee benefit Insurance policies guide for Indian CompaniesEmployee benefit Insurance policies guide for Indian Companies
Employee benefit Insurance policies guide for Indian CompaniesSusheel Agarwal
 
Small Business Protection Strategies
Small Business Protection StrategiesSmall Business Protection Strategies
Small Business Protection Strategiesdarienward
 
Benefit Commerce Groups Neutralizer-Health Plan Strategy
Benefit Commerce Groups Neutralizer-Health Plan StrategyBenefit Commerce Groups Neutralizer-Health Plan Strategy
Benefit Commerce Groups Neutralizer-Health Plan StrategyRonald Lain
 
AssuranceEdge Q4 2009
AssuranceEdge Q4 2009AssuranceEdge Q4 2009
AssuranceEdge Q4 2009dbozic33
 
Approach to workers compensation insurance
Approach to workers compensation insuranceApproach to workers compensation insurance
Approach to workers compensation insurancehalejohnston
 
Aegon UK Defaqto Business Protection Guide 2016
Aegon UK Defaqto Business Protection Guide 2016Aegon UK Defaqto Business Protection Guide 2016
Aegon UK Defaqto Business Protection Guide 2016Aegon
 
Trend Neutralizer - Health Plan Strategy
Trend Neutralizer - Health Plan Strategy  Trend Neutralizer - Health Plan Strategy
Trend Neutralizer - Health Plan Strategy Ronald Lain
 

Similar to Assurance Edge Quarter 4 2008 (20)

Health Spending Account
Health Spending AccountHealth Spending Account
Health Spending Account
 
Staffing Q1 2010
Staffing Q1 2010Staffing Q1 2010
Staffing Q1 2010
 
Self Funded Health Plans 101
Self Funded Health Plans 101Self Funded Health Plans 101
Self Funded Health Plans 101
 
Why Roundstone? We are the solution.
Why Roundstone?  We are the solution.Why Roundstone?  We are the solution.
Why Roundstone? We are the solution.
 
Reducing Health Insurance Costs The Year Ahead
Reducing Health Insurance Costs   The Year AheadReducing Health Insurance Costs   The Year Ahead
Reducing Health Insurance Costs The Year Ahead
 
October Newsletter 2010
October Newsletter 2010October Newsletter 2010
October Newsletter 2010
 
Economic Navigation And Leveraging Your Human Capital
Economic Navigation And Leveraging Your Human CapitalEconomic Navigation And Leveraging Your Human Capital
Economic Navigation And Leveraging Your Human Capital
 
Health Insurance - Inflationary Times
Health Insurance - Inflationary TimesHealth Insurance - Inflationary Times
Health Insurance - Inflationary Times
 
About Beneplan - 2019
About Beneplan - 2019About Beneplan - 2019
About Beneplan - 2019
 
How to Save Money on Group Health Insurance
How to Save Money on Group Health InsuranceHow to Save Money on Group Health Insurance
How to Save Money on Group Health Insurance
 
Alz June News
Alz June NewsAlz June News
Alz June News
 
Employee benefit Insurance policies guide for Indian Companies
Employee benefit Insurance policies guide for Indian CompaniesEmployee benefit Insurance policies guide for Indian Companies
Employee benefit Insurance policies guide for Indian Companies
 
Small Business Protection Strategies
Small Business Protection StrategiesSmall Business Protection Strategies
Small Business Protection Strategies
 
Who is Aliat?
Who is Aliat?Who is Aliat?
Who is Aliat?
 
Benefit Commerce Groups Neutralizer-Health Plan Strategy
Benefit Commerce Groups Neutralizer-Health Plan StrategyBenefit Commerce Groups Neutralizer-Health Plan Strategy
Benefit Commerce Groups Neutralizer-Health Plan Strategy
 
Ethika e-book
Ethika e-bookEthika e-book
Ethika e-book
 
AssuranceEdge Q4 2009
AssuranceEdge Q4 2009AssuranceEdge Q4 2009
AssuranceEdge Q4 2009
 
Approach to workers compensation insurance
Approach to workers compensation insuranceApproach to workers compensation insurance
Approach to workers compensation insurance
 
Aegon UK Defaqto Business Protection Guide 2016
Aegon UK Defaqto Business Protection Guide 2016Aegon UK Defaqto Business Protection Guide 2016
Aegon UK Defaqto Business Protection Guide 2016
 
Trend Neutralizer - Health Plan Strategy
Trend Neutralizer - Health Plan Strategy  Trend Neutralizer - Health Plan Strategy
Trend Neutralizer - Health Plan Strategy
 

Assurance Edge Quarter 4 2008

  • 1. STAFFING Q4 2008 AssuranceEdge Helping Today’s Professionals Stay On Top of the Insurance Marketplace Loss Prevention is Even More Important in a Tough Economy Businesses spend $170 billion a year on costs associated with occupational injuries and illnesses. This is money that comes straight out of company profits. With a slowing economy, businesses are looking for ways to trim expenses. For temporary staffing companies, occupational safety and loss control should not be an area to cut funding. In fact, when facing a slowing economy and reduced top-line revenue, the opposite is true. There are a number of reasons why staffing companies should look to increase efforts in the area of preventing workplace injuries when the economy slows down. It has been long established that effective safety and health management practices can reduce injury costs from 20%-40% annually, and these costs can become the difference between operating in the black vs. running in the red. Employee injuries and illnesses increase workers’ compensation costs, absenteeism and can cause incidents attributable to poor workmanship. More difficult to measure are decreases in morale and productivity. Beyond the simple well known facts, what are the other reasons for increasing investment and focus in health and safety initiatives right now? The unemployment rate continues to climb across all sectors of the U.S. economy. One of the key factors that increase an organization’s workers’ compensation expenses is the indemnity (lost time) incurred as a result of injuries. When the economy slows down, many companies are forced to reduce the number of shifts they operate, as well as reduce their labor force. If an employee is injured and is able to come back to light duty while recovering from the injury, but the employer is unable to accommodate the employee due to reduced demand for labor, the claim value will be significantly higher than what it could have been if light duty were available. The only way to prevent such a scenario is to prevent the injury from occurring. An additional reason to invest further in preventing losses is due to the fact that insurance carriers are beginning to tighten up their underwriting guidelines. Insurance carriers essentially make money in two ways, through the premiums they collect, and the investment returns they make from the premium dollars they hold. With a significant decline in investment returns, insurance carriers are forced to be more conservative when pricing risks. As we move into 2009, staffing companies who are proactively keeping their losses low will reap the rewards of lower insurance premiums. For those that are incurring losses, it is likely that they will see premium levels begin to increase incrementally as the insurance carrier community moves to a more conservative underwriting philosophy. In the end, the success or failure of an organization’s health and safety initiatives depend on two key factors. The first being commitment from the top of the organization. If upper management believes that investing in health and safety initiatives will deliver expense reductions, then embracing a culture of safety will successfully flow throughout the organization. Second, you can rest assured that you don’t have to walk alone in the process. Now more than ever, true Risk Management professionals can help you identify the vital few loss leaders and help you craft a strategy to successfully implement effective loss prevention measures. The new year will bring many challenges to an organization’s profitability. However, tools are available to help executives deal with the margin pressures created by a slumping economy. Gaining control of your risk management expenses is possible and generating a positive return on your investment is highly probable with the right Risk Management partner, and an organization wide commitment to the process.
  • 2. Q4 2008 Get the Most “Bang for Your Buck” with a Wellness Program in the New Year Your bottom line may be going up in smoke Research has shown that successful wellness programs can help control health care costs for many Consider the following: businesses. But sometimes, implementing a wellness • Smokers have a significantly higher chance of having program seems like a difficult task that may cost more a stroke or coronary heart disease, which on average money than it’s worth to many employers. However, cost $65,000 in medical bills in the year of the event starting a wellness program is much easier than you and $30,000 for the following 2 years* may think. And not to mention the cost benefits are • Pneumonia costs $3.85 per member per month for well worth it. If you already have a wellness program smokers and 96 cents for non-smokers* or if you’re looking to start one in 2009, we’ve outlined • Low-birth weight babies are much more common two key places to focus on to get the most “bang for among women who smoke during pregnancy and cost your buck”. $18,000 - $58,000 (for birth and the following The high cost of obesity 6 months) while a normal-weight newborn costs $6,000 - $8,000 including prenatal care* Consider the following: • Obesity costs employers more than $12 billion each Have you considered covering smoking cessation year in increased healthcare utilization, reduced programs the way you would any other medical productivity, and higher absenteeism* procedure? As you can see from the • Obesity-related disabilities cost employers an average figures noted above, you can’t afford $8,720 for each claimant* not to. A comprehensive and effective • Among women, obesity is related to depression, smoking cessation program usually another major medical claim cost driver for costs less than 50 cents per member employers* per month, or less than $6 per • Annual healthcare costs are 11% higher among obese year per member. You vs. non-obese people* will save on average $210 annually on So how can you begin to reduce these costs through health care costs wellness programs in your workplace? Focus specifically for each smoker on programs aimed at helping people lose weight. Here who quits. Smoking are some ideas: cessation programs are inexpensive and • Start a walking challenge. Over the spring and produce both short- summer months, have employees pair up into groups 2009 and long-term benefits and start tracking their miles walked with pedometers for members, and an (you can purchase pedometers for $2 - $4 per immediate impact on employee). At the end of the challenge, the top three your bottom line. teams to walk the most miles win a prize. • Switch out your vending machine or break room * Source: snacks to healthier items. This option doesn’t cost Workforce Management anything, as you are already paying for these items. • Bring in Weight Watchers or Jenny Craig and offer to pay a portion of the sign-up fee. Your employees may even get a group discount! At Assurance, we have built our reputation on • Offer partial reimbursements on yearly memberships earning our client’s trust and confidence through at your local gym (we suggest $50 per employee). excellence in every interaction. Independent since our inception in 1961, Assurance is ranked by Each of these ideas are easy to implement and Business Insurance magazine among the top 75 though there is a cost to get some of them started, the insurance brokerages in the country. impact programs like these can have on your health care costs will be worth it in the long run. For further information, please contact your Assurance representative at 847.463.7877 or e-mail staffing@assuranceagency.com Assurance Agency, Ltd. • One Century Centre • 1750 East Golf Road • Schaumburg, Illinois 60173 phone 847.797.5700 • fax 847.440.9130 • www.assuranceagency.com