Rethinking Wellness Programs in Workers’ Comp

The early 2000s saw an explosion in employers adding wellness programs to reduce workers’ compensation costs. While some of these programs were successful, many failed due to missing the right fit within an organization. Of those successful, many became obsolete with the COVID-19 lockdowns in early 2020 and the “work at home” mentality that has remained since reopening. Now is the time to reconsider adding a wellness program within your workplace or revamping it and ensuring it is done right.

Benefits of a Wellness Program in Your Workplace

There are numerous benefits to having a robust wellness program within an organization of any size. This goes beyond the reduction in costs associated with a workers’ compensation program.”

• Work Comp Cost Drivers: Wellness programs have been found to reduce the severity and frequency of work injuries in many different types of organizations. They can also be incorporated into return to work programs that prevent the employee from becoming deconditioned.

• Increase Employee Health: Wellness programs help combat common comorbidities such as weight gain, hypertension/high blood pressure, heart disease, arthritis, and sleep apnea. They can also help people free themselves from nicotine dependency, including smoking.

• Retention and Recruitment: Wellness programs are a welcome perk that employees want. A recent study by Principal Financial Group found that nearly 50% of Americans would choose to stay at an employer with a well-organized program if a similar employer offered more money but did not have a program. Attracting a new and diverse workforce is vital to any organization’s success.

Now is the time to start or re-image a wellness program within your organization.

Starting or Rebooting Wellness in Your Organization

It all starts with consulting an attorney on state and federal anti-discrimination laws to avoid unnecessary legal expenses down the road. Specific items that need to be considered should include guidance provided by the Equal Employment Opportunity Commission (EEOC) and what is not allowed under the Americans with Disabilities Act (ADA), and the Genetic Information Nondiscrimination Act (GINA). There are also several pertinent considerations under the Health Insurance Portability and Accountability Act (HIPAA) related to a program’s impact on health insurance premiums.

• Conduct Various Assessments: Getting input from the employees who will use the program is critical. A well-designed assessment allows employees to provide feedback on their personal wellness goals, interests, and needs. A health risks assessment will also need to be used to determine problems that could develop within any program and what programs to offer. Cultural and structural barriers also need to be assessed to ensure the right accommodations can be provided to include the most people.

• Obtain Support of Management: The establishment or re-development of a wellness program should be led by someone within an organization with direct access to upper management. This should include a discussion of the program’s short- and long-term goals and strategic objectives.

• Perform Work Within a Committee: One person never has all the answers. It is best to include the collective whole by asking shareholders within all parts of an organization to be involved in the process. This will help drive all phases of a successful wellness program – implementation, monitoring, and evaluation for effectiveness.

• Design and Implement: This is where the rubber meets the road for any wellness program. A successful program should have various incentives and rewards for achieving and prolonged participation. It should also include a constant (re)evaluation to determine if it includes perverse disincentives and realign the program with stated priorities.

A successful wellness program takes time and dedication. They are never built overnight and require ongoing work that will benefit any workers’ compensation program.

Possible Work Comp Downfalls

Take causation when developing an employee wellness program. In some instances, these programs were not properly prepared and resulted in compensable work injuries. Examples could include:

• Providing fitness center access on company premises where employees can use it during work hours. Injuries sustained while engaging in otherwise healthy activities have been found to become compensable; and

• Activities and programs that start as voluntary but a change in nature and scope to become either compulsory or recommended to the point where required participation is implied.

Courts will look at several factors when determining primary liability and injuries resulting from wellness program injuries. As a general rule, making these programs voluntary and outside normal work hours is crucial. Always consult an attorney with questions. Notwithstanding these downsides, all interested stakeholders should understand the benefits of a robust and well-organized wellness program that pays dividends and increases workplace morale.

Conclusions

Now is the time to restart or review a wellness program within your organization to reduce workers’ compensation program costs. These programs have many benefits but require teamwork and ongoing review to reach their full potential. The benefits do outweigh the costs and can benefit any organization.

Michael Stack, CEO of Amaxx LLC, is an expert workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: mstack@reduceyourworkerscomp.com.

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.