Cost-conscious companies re-evaluate wellness programs

ByABC News
June 16, 2009, 9:36 PM

— -- Companies, desperate to slice fat from their budgets during this recession, increasingly are targeting workplace wellness programs. Smoking cessation and weight-loss programs are among those being considered for the chopping block, says Laurel Pickering, executive director of the New York Business Group on Health, a coalition representing employers on health benefit issues.

"When (companies) are looking for something to cut, and the CFO comes to the HR people and says, 'Why should we keep this program?' it's difficult for the HR person to say, 'It's important,' " Pickering says.

A big problem: It can take years to analyze the impact of these programs, and even then, the return on investment isn't always clear.

The attack on such programs comes even as political power players, benefits officers and top health care academics aggressively tout workplace wellness as a way to boost productivity and reduce health care costs.

Just last month, President Obama hosted a wellness gathering at the White House with top company executives, as well as union and public health officials, to learn more about such initiatives. He deemed the confab the start of an "ongoing process," and his advisers have already had a follow-up meeting with corporate and academic experts on the topic.

Other governmental leaders also have latched onto the issue. For instance, a bill making its way through the Senate would give tax credits to firms that offer wellness programs.

But even with all the high-profile attention, some companies have had to revamp those initiatives in the quest for healthier bottom lines.

Pfizer, dealing with the sour economy and a corporate restructuring, scaled back on the monetary incentives it offers employees to participate in its wellness program, says Janet Rodriguez, a senior manager at the company.

A strong history

Faced with the uncertainty of what shape the health care overhaul will take and with health care expenses rising more than 6% a year, companies aren't willing to completely abandon wellness.