Eric Levitz in New York Magazine reveals a dirty little corporate secret – attempting to use the stick and carrot to improve employee heatlth didn’t actually work in one celebrated case:
Burd explained that, in 2005, Safeway had instituted a “voluntary” wellness program, which gave employees the opportunity to undergo tests of their tobacco usage, body fat, blood pressure, and cholesterol levels. If they passed all four tests, their annual premiums were reduced by $780 for individuals and $1,560 for families.
Or, put another way, if Safeway employees failed any of the tests — or refused to participate in the “voluntary program” — their premiums were increased by $780 for individuals and $1,560 for families.
This system allowed Safeway to achieve the unthinkable: Between 2005 and 2009, the company kept its per capita health-care costs flat, even as most American companies saw theirs increase by 38 percent. …
There is no evidence that this new rule produced a significant drop in America’s health-care costs. And that isn’t terribly surprising — since Burd’s column was composed almost entirely of lies.
“[A] review of Safeway documents and interviews with company officials show that the company did not keep health-care costs flat for four years, the Washington Post reported in January 2010. “Those costs did drop in 2006 — by 12.5 percent. That was when the company overhauled its benefits … the decline did not have anything to do with tying employees’ premiums to test results. That element of Safeway’s benefits plan was not implemented until 2009.”
In other words, Safeway reduced costs for a single year by raising its employees’ deductibles. It didn’t save money by encouraging its workers to lead healthier lives — it saved money by making its workers pay a larger portion of their health-care costs.
Something to keep in mind the next time your company calls up and asks you to certify that you exercise. Or announces a brand new innovation in their health benefits … and that also raises the question: how many folks have the time to exercise properly? Between 50-60 hour work-weeks (thank goodness my lack of ambition lets me skip out on that), children, hobbies, keeping up on government follies (you do do that, right? Right?), extended family care-taking, and being online at 3am in case the customer needs you, who has time to exercise?
At least at places that would consider this crap? After all, the places that make ridiculous demands are also those most likely to have out of shape employees. Unless it’s construction.
So, along with being an infringement on our freedoms, it also feels like a dead-end, both path way and company.
