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CDHPs and Wellness Programs: A Winning Combination

October 2007 Product Highlights

Larry J. Luter, M.D., F.A.A.F.P.
Chief Medical Officer
Meritain Health

Consumer-directed health plans (CDHPs) have been steadily gaining popularity since the beginning of the decade, as employers encourage employees to take on more financial responsibility of their healthcare. Serving as a solution to employer concerns of quality and perpetual cost increases, these flexible plans enable employers to develop informed consumers of healthcare among their respective workforces.

Incentive-Based Wellness for the Mind and Body

CHDPs are most effective when paired with an incentive-based wellness program designed to encourage behavior change among employees, ultimately lowering the rise in health benefits costs for employers and increasing productivity. Incentive-based wellness programs accomplish various goals, such as assessing risk factors and improving employee health.

Wellness programs alert employees to mental and physical risks that may develop into more serious conditions if not handled immediately. Mental and physical health are interdependent wherein mental health can be exacerbated by physical health problems, such as diabetes and obesity. Luckily for employers, research has shown that effective treatment of mental illness can lead to the improvement of chronic physical disorders.

Wellness programs developed for both the body and mind are instrumental for a holistic approach to the improvement of employee health. One byproduct of mental health not being addressed is presenteeism, a growing problem in the workplace. Presenteeism occurs when an employee is present at work but is not fully productive due to a health condition, be it mental or physical, diagnosed or undiagnosed.

The Society for Human Resource Management recently reported that the cost of presenteeism has now surpassed that of absenteeism, costing businesses more than $180 billion each year, while the cost of absenteeism is $118 billion each year. Presenteeism contributes to a vicious cycle of lost productivity in the workplace, with present employees negatively affecting the overall working environment.

Statistics reveal that it is no longer enough to offer competitive benefits, but employers must also educate workers to make them aware of the available benefits. This can include educational sessions that outline the benefits of each plan, interactive communication tools, takeaways and Web site resources. Providing educational tools will heighten employee responsibility for healthcare decision-making, and members can use tools and resources that teach them to become healthy, stay healthy and lower their healthcare costs.

Benefits of Incentive-Based Wellness Programs

By establishing a wellness program that is designed to help members become more aware of their health conditions and the importance of ongoing wellness education, employees are more inclined to improve their health. Employees who do not seek treatment for mental illness are often unaware of the benefits available to them.

In order to establish active participation within a wellness program, members must be aware that they will be rewarded for improvements in their health. Incentives should be created based on the specific interests of the employee base. Some may be motivated by free gym memberships, others might desire immediate cost savings. Offering a wide range of incentives is the best approach to active employee participation.

A wellness program that targets the unique risk factors of the employees will yield the best results. One should look for a health benefits company that assess risk factors of employees by providing tools and information that help identify risk factors that drive up healthcare costs. Additionally, confidentiality between the wellness program and the employee, established through compliance, is necessary for employees to trust and invest themselves in the program. Employees need to be made aware that the wellness program meets the highest regulatory standards and that their personal information will be safeguarded.

The Future of CDHPs

The health benefits industry continues the move toward plans that make members decision-makers. As consumers continue to become educated about their health benefits options, their lowered rates will keep consumer-driven health plans and incentive-based wellness at the forefront of today's health options.

Dr. Larry Luter is Chief Medical Officer of Meritain Health. With an extensive clinical background and 10 years experience in medical management, Dr. Luter most recently served as Senior Medical Director of CIGNA HealthCare of Florida, where he chaired the quality and credentials committees and was a member of the local management forum that conducted all prior authorizations for the state of Florida. Prior to this, he was the Medical Director for AvMed Health Plan in Florida with responsibilities in member advice, emergency admissions, homecare, skilled nursing facilities and disease management. Dr. Luter retired from the United States Navy Medical Corps in 1992 after working as head of the Family Practice Department and serving as the Director of Medical Services at the Naval Hospital in Orlando, Fla. He received his M.D. from the University of Texas Medical School.


Download our new Meritain Health Wellness at Work Podcast to learn about the impact that mental health and presenteeism have on your bottom line.