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Tuesday, January 20, 2009

Is it a health plan or an incentive plan?

Today’s USA Today story about employee wellness plans is yet more evidence that healthcare in America is facing change.


People are living longer, and aspire to live healthier longer. Thus, they are taking greater interest in their own well-being. But another driving force is that the impact of poor health among employees is hitting companies where it hurts: On the bottom line (due to both rising insurance premiums and employee downtime). So, some companies are offering performance-based incentives to workers who reduce their cholesterol, control blood pressure, and meet other quality-of-health targets.


Implications: While the focal point for many consumers right now is cost, healthy foods and habits continue to have gravitational pull. The advantage may go to those products which can demonstrate a proven correlation between their use and better health. After all, companies are rewarding their workers for outcomes, not just actions. Expect consumers to do the same, where “health-conscious” purchasing is concerned. A “claim” might buy you product trial. But it might take more—like actual results—to buy product loyalty.


Mike Anderson

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