The Principal Financial Well-Being IndexSM - Wellness Results Fourth Quarter 2007
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Wellness Benefits Currently Being Offered by Firms
Employees of firms with 10-1000 employees are offered a variety of benefits through the workplace. Some employers have implemented wellness benefits as a method for boosting employee health and to help curb the ever-rising healthcare expenses. To identify what types of wellness benefits are available, employees were given a list of possible wellness benefits and asked to identify which ones they were offered. Table 1 below shows that the top three wellness benefits offered are educational tools or resources (14%), fitness center discounts (14%), and fitness facilities (11%). As would be expected, wellness benefits are more likely to be offered at larger firms (501-1000 employees).
The percentage of employees reporting that their company offered educational tools or resources, educational wellness seminars, cholesterol screening, intervention programs, and consultant reviews of health screen dropped significantly from 2006.
Table 1 - Wellness Benefits
"Which of the following wellness benefits does your employer currently offer?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Wellness Benefits | 4th Qtr 2007 | 4th Qtr 2006 | 4th Qtr 2005 | 4th Qtr 2004 | 2007 Employer Firm Size | |
|---|---|---|---|---|---|---|
| 10 to 500 Employees | 501 to 1,000 Employees | |||||
| Educational Tools or Resources | 14%SIG | 18% | 16% | 19% | 12% | 26% |
| Fitness Center Discounts | 14% | 15% | 12% | 14% | 13% | 20% |
| Fitness Facilities | 11% | 12% | 11% | 11% | 10% | 16% |
| Smoking Cessation Programs | 11% | 9% | 10% | 6% | 9% | 17% |
| On-Site Health Screenings | 10% | 11% | 8% | 9% | 8% | 24% |
| Blood Pressure Checks | 9% | 11% | 9% | 12% | 8% | 17% |
| Educational Wellness Seminars | 9%SIG | 13% | 11% | 14% | 7% | 19% |
| Access to Experts (Nutritionists, etc) | 7% | 7% | 7% | 8% | 6% | 10% |
| Weight Management Programs | 7% | 9% | 8% | 5% | 6% | 12% |
| Blood Sugar Screening | 6% | 6% | 6% | 6% | 5% | 14% |
| Cholesterol Screening | 6%SIG | 10% | 7% | 8% | 5% | 11% |
| Intervention Programs | 5%SIG | 7% | 5% | 7% | 5% | 8% |
| Weight Mgmt Program Discounts | 5% | 6% | 5% | 4% | 4% | 13% |
| Online Health Screenings | 4% | 4% | 3% | 2% | 4% | 7% |
| Maternity Management | 4% | 4% | 5% | 6% | 4% | 6% |
| Consultant Review of Health Screen | 4%SIG | 6% | 4% | 4% | 3% | 8% |
| Personalized Action Plan for High Risk Conditions | 3% | 4% | 3% | 4% | 3% | 2% |
| Fitness Equipment Discounts | 2% | 2% | 3% | 2% | 2% | 2% |
| Other | 4% | 4% | 3% | 3% | 4% | 2% |
| N=1,154 | N=1,197 | N=1,213 | N=1,736 | N=975 | N=179 | |
SIG = varies significantly (95% level) from 2006 employee comparison
Usage of Wellness Benefits by Employees
Although employers can offer a variety of wellness benefits, it is up to the employees to take advantage of these benefits. Based upon which wellness benefits are offered to them, employees were asked to identify how frequently they used each of them. Shown in Table 2 below is a breakdown of how frequently they are used.
Table 2 - Usage of Wellness Benefits
"How often do you use each of the following wellness benefits offered by your employer?"
Base: employed U.S. adults with at least 1 Wellness Program offered
| Usage of Wellness Benefits | # of Employees with access to benefit | Have Used 2007 | Have Used 2006 | Have Used 2005 | Have Used 2004 | 2007 Use Frequency | ||
|---|---|---|---|---|---|---|---|---|
| Weekly | Monthly | Yearly | ||||||
| Education Tools/Resources | 161 | 74%SIG | 86% | 82% | 84% | 9% | 52% | 14% |
| On-Site Health Screenings | 119 | 74% | 79% | 68% | 79% | 5% | 11% | 59% |
| Education Wellness Seminars | 104 | 68% | 63% | 68% | 69% | 4% | 17% | 47% |
| Online Health Screenings | 51 | 66%SIG | 86% | 72% | 66% | 10% | 13% | 43% |
| Blood Pressure Checks | 105 | 64% | 70% | 81% | 71% | 6% | 23% | 35% |
| Blood Sugar Screening | 75 | 59% | 60% | 70% | 65% | 5% | 9% | 45% |
| Cholesterol Screening | 71 | 59% | 70% | 73% | 70% | 2% | 2% | 55% |
| Fitness Facilities | 125 | 52% | 60% | 38% | 54% | 20% | 20% | 12% |
| Consultant Review of Health Screen | 43 | 51%SIG | 80% | 72% | 70% | 14% | 3% | 34% |
| Fitness Equipment Discounts | 21 | 47% | 24% | 40% | 64% | 23% | 12% | 13% |
| Access to Experts | 77 | 42% | 48% | 42% | 60% | 8% | 14% | 20% |
| Personalized Action Plan for High Risk Conditions | 30 | 40% | 65% | 45% | 49% | 10% | 24% | 7% |
| Maternity Management | 48 | 38% | 24% | 15% | 12% | 8% | 7% | 22% |
| Weight Mgmt Programs | 75 | 36% | 37% | 33% | 35% | 15% | 6% | 14% |
| Weight Mgmt Program Discounts | 62 | 28% | 22% | 36% | 17% | 11% | 4% | 13% |
| Fitness Center Discounts | 162 | 23%SIG | 39% | 32% | 38% | 12% | 5% | 6% |
| Smoking Cessation Programs | 122 | 18% | 11% | 16% | 10% | 3% | 4% | 11% |
| Intervention Programs | 62 | 18% | 25% | 37% | 40% | 5% | 6% | 6% |
SIG = varies significantly (95% level) from 2006 employee comparison
Wellness Benefits Desired and Not Currently Offered
To understand what wellness benefits employees desire, employees were given a list of benefits not currently offered by their firms and asked to pick the top 3 they would like to see offered. Table 3 shows those benefits listed in order of most frequently mentioned — fitness facilities received the highest percentage of mentions (34%), this percentage is significantly higher than in 4th quarter 2006 (30%). Nearly one fourth (23%) responded they would prefer to see their employer offer "none of these".
Some gender differences emerged with regard to wellness benefits desired. Male employees (39%) were significantly more likely than female employees (27%) to desire fitness facilities as a wellness benefit. In contrast, female employees (19%) were significantly more likely than male employees (10%) to desire weight management program discounts as a benefit.
Furthermore, employees aged 18-34 years (45%) were significantly more likely to desire fitness facilities as a benefit than 35-44 year olds (30%), 45-54 year olds (33%) and those ages 55 and older (16%).
Table 3 - Wellness Benefits Desired
"Below are the wellness benefits you indicated your employer does not offer. Which of the following are the top three benefits that you would like to see your employer offer?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Wellness Benefits Desired | Top Desired 4th Qtr 2007 | Top Desired 4th Qtr 2006 | Top Desired 4th Qtr 2005 | Top Desired 4th Qtr 2004 |
|---|---|---|---|---|
| Fitness Facilities | 34%SIG | 30% | 27% | 31% |
| Fitness Center Discounts | 24% | 26% | 23% | 30% |
| Weight Management Programs | 18% | 18% | 17% | 19% |
| Weight Management Program Discounts | 14% | 12% | 9% | 13% |
| Access to Experts (Nutritionists, etc) | 13%SIG | 17% | 12% | 18% |
| On-Site Health Screenings | 13% | 15% | 15% | 16% |
| Cholesterol Screening | 13%SIG | 8% | 13% | 11% |
| Fitness Equipment Discounts | 11% | 12% | 10% | 15% |
| Blood Pressure Checks | 10% | 8% | 13% | 7% |
| Educational Wellness Seminars | 8% | 9% | 9% | 9% |
| Smoking Cessation Programs | 8% | 9% | 7% | 9% |
| Consultant Review of Health Screening | 7% | 6% | 5% | 7% |
| Blood Sugar Screening | 6% | 5% | 6% | 5% |
| Educational Tools or Resources | 6% | 6% | 5% | 8% |
| Personalized Action Plan for High Risk Conditions | 4%SIG | 6% | 7% | 7% |
| Online Health Screenings | 3% | 3% | 4% | 2% |
| Maternity Management | 3% | 4% | 5% | 5% |
| Intervention Programs | 2% | 3% | 4% | 6% |
| None of these | 23% | 24% | 26% | 19% |
| N=1,151 | N=1,196 | N=1,213 | N=1,736 |
SIG = varies significantly (95% level) from 2006 employee comparison
Perceived Success of Wellness Programs at Reducing Health Care Costs
Employees were asked to evaluate how successful they feel wellness benefits are in reducing healthcare costs. Fifty-three percent believe wellness benefits are very/somewhat successful in reducing healthcare costs. Table 4 provides a breakdown of results.
Table 4 - Wellness Program Success
"How successful do you believe wellness benefits offered by your employer can be in reducing healthcare costs?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Wellness Program Success | Very Successful | Somewhat Successful | Neither | Somewhat Unsuccessful | Very Unsuccessful |
|---|---|---|---|---|---|
| 2007 | 12%SIG | 41% | 25% | 13%SIG | 10%SIG |
| 2006 | 19% | 42% | 23% | 10% | 6% |
| 2005 | 15% | 42% | 27% | 9% | 7% |
| 2004 | 14% | 43% | 24% | 9% | 11% |
SIG = varies significantly (95% level) from 2006 employee comparison
Ranking of Who Benefits the Most from Reduced Health Care Costs
As noted above, 53% believe that wellness benefits are successful in reducing healthcare costs. As a follow-up question, they were asked to identify who they feel benefits the most financially from reduced healthcare costs. Table 5 shows what percentage of employees ranked each of the items as number one — average rankings were also included in the table. "My family and me" was most commonly ranked number one as who benefits the most from reduced health care costs.
Table 5 - Benefits from Wellness Benefits
"In your opinion, who benefits most financially from the reduced healthcare costs associated with wellness benefit programs? Please rank list in order with "1" receiving the highest financial benefit and "6" receiving the lowest financial benefit."
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Benefits from Wellness Benefits | % Ranked #1 2007 | % Ranked #1 2006 | % Ranked #1 2005 | % Ranked #1 2004 |
|---|---|---|---|---|
| My Family and Me | 55% | 58% | 55% | 48% |
| My Insurance Provider | 20% | 17% | 14% | 18% |
| My Employer | 16% | 16% | 18% | 19% |
| Society | 5% | 5% | 5% | 9% |
| Government | 3% | 2% | 4% | 3% |
| Health Care Providers | 2%SIG | 1% | 4% | 3% |
SIG = varies significantly (95% level) from 2006 employee comparison
Items That Would Encourage Employees to Participate in a Wellness Program
Employees were asked to identify three benefits that would encourage them to participate in a wellness program — Table 6 shows the full results. The greatest perceived benefit of a wellness program was better overall physical health, cited by 54% of the employees. Other top mentions included greater chance of living a longer, healthier life (40%), reduced personal health care costs (37%), and receive an incentive or reward to participate (35%).
Table 7 shows a breakdown of results by age groups.
Table 6 - Encourage to Participate
"Of the items listed below, which three would encourage you to participate in a wellness benefit program?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Encourage to Participate | 4 Q 2007 | 4 Q 2006 | 4 Q 2005 | 4 Q 2004 |
|---|---|---|---|---|
| Better overall physical health | 54% | 56% | 55% | 57% |
| Greater chance of living a longer, healthier life | 40% | 41% | 40% | 40% |
| Reduced personal health care costs | 37% | 38% | 42% | 46% |
| Receive an incentive or reward to participate | 35% | 35% | 33% | 31% |
| Employer provides opportunity to participate | 28% | 30% | 31% | 30% |
| Recommendation by doctor or health care provider | 19% | 17% | 16% | 20% |
| More positive mental outlook | 16% | 18% | 18% | 18% |
| Reduce impact of current condition or illness | 14% | 15% | 16% | 18% |
| Encouragement from friends or family | 10% | 11% | 8% | 9% |
| Encouragement from employer | 5% | 6% | 5% | 6% |
| Advertisements | 1% | <1% | <1% | 4% |
| None of these | 9%SIG | 5% | 7% | 4% |
SIG = varies significantly (95% level) from 2006 employee comparison
When respondents are reviewed by age group, there are some differences in what would encourage them to participate in a wellness program. The respondents age 55 and over are significantly more likely than all the younger age groups to be encouraged to participate if it provides reduced personal healthcare costs.
Table 7 - Encourage to Participate by Age Group
"Of the items listed below, which three would encourage you to participate in a wellness benefit program?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Encourage to Participate by Age Group | 2007 EE Age Groups | |||
|---|---|---|---|---|
| 18-34 | 35-44 | 45-54 | 55+ | |
| Better overall physical health | 54% | 51% | 56% | 53% |
| Greater chance of living a longer, healthier life | 36% | 38% | 43% | 46% |
| Reduced personal health care costs | 35% | 31% | 36% | 49%^ |
| Receive an incentive or reward to participate | 35% | 40% | 36% | 29% |
| Employer provides opportunity to participate | 25% | 31% | 28% | 30% |
| Recommendation by doctor or health care provider | 18% | 15% | 23% | 21% |
| More positive mental outlook | 16% | 15% | 19% | 13% |
| Reduce impact of current condition or illness | 10% | 13% | 19%^ | 17% |
| Encouragement from friends or family | 14%^ | 11% | 6% | 7% |
| Encouragement from employer | 5% | 5% | 5% | 3% |
| Advertisements | 1% | 1% | - | - |
| None of these | 12% | 8% | 6% | 8% |
| N=326 | N=252 | N=303 | N=273 | |
^ — varies significantly (95%) from at least one age group
"-" indicates no response
Effect of Wellness Program on Employee Motivation and Retention
In determining how important employees perceive the wellness benefits overall, they were asked to identify how much they agreed with a few statements related to encouraging them to work harder/perform better, and encouraging them to stay in their current employment situation. Overall, 47% agree or somewhat agree that wellness benefits encourage them to work harder and perform better, and 48% said it would encourage them to stay in their current employment situation. Please refer to Table 8 and Table 9 for breakdowns of each question.
Table 8 - Employee Motivation
"Please tell us how much you agree or disagree with the following statement. Having a wellness program offered by my employer would / does encourage me to work harder and perform better."
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Employee Motivation | Strongly Agree | Somewhat Agree | Neither | Somewhat Disagree | Strongly Disagree |
|---|---|---|---|---|---|
| 2007 | 12% | 35%SIG | 40%SIG | 8% | 5% |
| 2006 | 13% | 39% | 35% | 8% | 6% |
| 2005 | 12% | 35% | 38% | 9% | 6% |
| 2004 | 13% | 37% | 35% | 8% | 6% |
SIG = varies significantly (95% level) from 2006 employee comparison
Table 9 - Employee Retention
"Please tell us how much you agree or disagree with the following statement. Having a wellness program offered by my employer would/does encourage me to stay in my current employment situation."
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Employee Retention | Strongly Agree | Somewhat Agree | Neither | Somewhat Disagree | Strongly Disagree |
|---|---|---|---|---|---|
| 2007 | 12% | 36%SIG | 39%SIG | 8% | 5%SIG |
| 2006 | 14% | 40% | 30% | 8% | 7% |
| 2005 | 13% | 35% | 37% | 9% | 6% |
| 2004 | 15% | 39% | 33% | 7% | 6% |
SIG = varies significantly (95% level) from 2006 employee comparison
Health Plan Options
Employees were asked to indicate how many health plan options they have available at their place of employment. Forty-two percent have more than one option available. The percentage of employees (11%) reporting that they have no health plan options available is up significantly from the percentage reported in 2006 (8%).
The bigger the firm, the more likely there are multiple health plan options available. Firms with 10 to 500 employees are significantly more likely than firms with 501 to 1,000 employees to offer no health options or just one option. In contrast, firms with 501 to 1,000 employees are more likely than firms with 10 to 500 employees to offer 3 health plan options or 4 or more health plan options to their employees.
Table 10 - Number of Health Plans Offered
"How many health plan options do you have available at your place of employment?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Number of Health Plan Offered | 4th Qtr 2007 | 4th Qtr 2006 | 4th Qtr 2005 | 4th Qtr 2007 Employer Firm Size | |
|---|---|---|---|---|---|
| 10 to 500 Employees | 501 to 1,000 Employees | ||||
| None | 11%SIG | 8% | 10% | 12%^ | 4% |
| 1 option | 36% | 38% | 36% | 38%^ | 26% |
| 2 options | 27% | 27% | 22% | 27% | 30% |
| 3 options | 10%SIG | 13% | 13% | 8%^ | 18% |
| 4 or more options | 5% | 6% | 7% | 4%^ | 10% |
| Not sure | 11% | 9% | 12% | 11% | 12% |
| N=1,154 | N=1,197 | N=1,213 | N=975 | N=179 | |
SIG = varies significantly (95% level) from 2006 employee comparison
^ = varies significantly (95% level) from the other employer firm size category
Ranking of What Motivates Your Decision on Which Plan to Choose
As noted above, 42% of employees in firms with 10-1000 have more than one health plan option to choose from. As a follow-up question, they were asked to identify what motivates them to choose a particular plan. Table 11 shows what percentage of employees ranked each of the items as number one. The monthly paycheck deduction was ranked first by the largest percentage of employees (25%). Care network (doctors and facilities available within the plan) was also ranked first by many (23%) of the employees.
Table 11 - Motivators for Choosing a Health Plan Option
"What motivates your decision on which plan to choose? Please rank your top 3 responses with "1" being the most motivational."
Base: Employed U.S. adults who have more than option to choose from
| Motivators for Choosing a Health Plan Option | % Ranked #1 2007 | % Ranked #1 2006 |
|---|---|---|
| Monthly paycheck deduction | 25% | 24% |
| Care network (doctors and facilities available within the plan) | 23%SIG | 31% |
| Deductible/s | 18%SIG | 10% |
| Physician office visit co-pay | 11% | 11% |
| Benefit limitations and/or exclusions | 11% | 9% |
| Estimated health care need for coming year | 6% | 7% |
| Emergency visit co-pay | 1% | 2% |
| What my colleagues are choosing | 1% | - |
| None of these-do not have insurance through my employer | - | 5% |
| None of these, I just "pick one" | - | 1% |
| N=499 | N=546 |
"-" indicates no responses
SIG = varies significantly (95% level) from 2006 employee comparison
Anticipated Medical Insurance Changes
Employees who are offered health insurance through their employer were asked what they anticipate will happen with their insurance in 2008. Sixty percent expect their premiums will increase, over a third (38%) expect their deductibles will increase, 21% expect their plan options will change, and the same percentage expect that their coverage will be reduced. When compared to the last time this question was asked in 4th quarter of 2003, significantly fewer employees expect to see nearly all of these changes than previously.
Table 12
"Which of the following, if any, do you anticipate will happen to your employer-sponsored medical insurance in 2008? Please select all that apply."
Base: Qualified employees whose employer offers health insurance
| Anticipated Medical Insurance Changes | 4 Qtr 2007 EE | 4 Qtr 2006 EE |
|---|---|---|
| Premiums will increase | 60%SIG | 70% |
| Deductibles will increase | 38%SIG | 45% |
| Change in medical plan options | 21%SIG | 42% |
| Reduction in coverage | 21%SIG | 34% |
| Change in medical providers | 14%SIG | 23% |
| Employer will drop medical insurance coverage | 1% | 2% |
| None of the above | 25%SIG | 17% |
| Other | 1% | 1% |
| N=1,048 | N=1,344 |
SIG = varies significantly (95% level) from 2003 employee comparison
Health Plan with Wellness Component
Employees were asked to rate their interest in a new health plan which contains a wellness component that would allow employees to have reduced deductibles and co-payments. Forty-five percent of employees expressed some level of interest (either somewhat interested or very interested) in this type of health plan. A third of employees were either somewhat or very uninterested in the plan. About a quarter (23%) were neither interested nor uninterested in the plan.
Interest does seem to differ by employer firm size. Employees in firm sizes of 501 to 1,000 employees (42%) are significantly more likely than employees in firm sizes of 10 to 500 employees (31%) to be uninterested in this health plan.
Table 13
"Some businesses are considering offering their employees a health plan with a wellness component. With this program, employees would have lower deductibles and co-payments in the first 3 months of coverage. During that time, employees would be required to complete a health risk assessment and wellness screening. Employees without any illnesses or at-risk behaviors would continue to have reduced deductibles and co-payments. Those with illnesses or at-risk behavior can continue to save on deductibles and co-payments if they agree to make health improvements with the help of a health coach."
"How interested would you be in participating in this type of health plan with a wellness component?"
Base: 1,154 employed U.S. adults in firms of 10-1,000 employees
| Health Plan with Wellness Component | 4th Qtr 2007 EE | 4th Qtr 2007 Employer Firm Size | |
|---|---|---|---|
| 10 to 500 Employees | 501 to 1,000 Employees | ||
| Net of Uninterested (Very + Somewhat) | 32% | 31%^ | 42% |
| Very uninterested | 18% | 16% | 24% |
| Somewhat uninterested | 15% | 14% | 18% |
| Neither interested nor uninterested | 23% | 23% | 19% |
| Somewhat interested | 30% | 31% | 26% |
| Very interested | 15% | 16% | 12% |
| Net of Interested (Very + Somewhat) | 45% | 46% | 38% |
^ = varies significantly (95% level) from the other employer firm size category
