Incentives for Healthy Habits. Carrot? Stick? Maybe Both?

I just came across this article about how more companies are adopting the carrot and the stick approach to managing health care costs.  I thought you would find it interesting, so here it is:  CNNMoney Article If for some reason the link won’t open, here is the pdf:  CNNMoney Incentive Article.

The big statistic in the article though, is that an unbelievable 74% of companies are planning on implementing or continuing to use, incentives for participation in health improvement programs!  Some companies are even making HRA’s mandatory to be eligible for coverage.

This really validates the trend we’re seeing here at HealthCheck360.  We are talking to more and more companies that are ready to make serious changes and use the carrot to do the right thing for their employees, but also use the stick for those who still want to continue unhealthy habits.  But the proof is in the pudding (fat free, of course).  The article also states that the system seems to be working.  Employers that offer incentives or impose penalties for unhealthy lifestyle choices are seeing health coverage costs flat to increasing as little as 1% for 2008.  This is in line with the trends we are seeing with properly designed programs.

So what does a properly designed program look like?  How do you ensure a positive participant experience?  How do you help corporate executive’s lead cultural change within their organization that leads to results?  Lots of questions.  We may not have all of the answers, but we can tell you what we’ve seen work for other firms and would be happy to share the possibilities with you.

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