Arizona Hispanic Chamber of Commerce
255 E Osborn, Suite 201 Phoenix, AZ 85012
Phone: (602) 279-1800 Fax: (602) 279-8900
Contact us at: info@azhcc.com

Health Care for Small Businesses

Q: I have been in business for 15 years and have 35 employees. We have weathered ups and downs together, but these days, health care costs are becoming increasingly difficult to deal with, almost to the point where I might have to shut the doors. I certainly do not want to do that. I have shopped around and gotten lower rates, but they are still too high. Any other suggestions?

Allison

A: With the high cost of healthcare being what it is these days, you are not alone. Businesses of all sizes are increasingly on the lookout for ways to cut medical costs. This may help: I recently ran across one option that is worth a second look -- wellness programs. These innovative programs are a great way to keep healthcare costs down, and also bring morale up.

Wellness programs are on the increase throughout the country. According to a recent survey I saw, more than 80 percent of businesses with 50 or more employees have some form of health/wellness programs.

The most popular types are:

  • Exercise and weight loss
  • Stress reduction
  • Stopping-smoking, and
  • Back care

Needless to say, these programs popular among employees for obvious reasons, but that such wellness programs positively affect the bottom line have made them maybe even more popular with small business owners and management. Businesses that have adopted such programs especially like the savings in insurance premiums and time lost due to sickness:

  • Du Pont’s wellness program resulted in $1.42 in savings for every $1 invested.
  • Providence Health Care had a 28 percent reduction in the use of its health care plan after starting a "wellness challenge."
  • At Berk-Tec, a manufacturing plant employing 1,000 people, a wellness program reduced health care costs - in one year - by 18 percent.
  • A city in California offered classes and fitness training in an attempt in order to reduce back problems. Worker's comp claims went down, and so did medical costs and sick days related to back injuries.

So the medical cost savings to your business resulting from having health and wellness programs are quite real. And yet even so, the benefits go beyond money savings and include higher productivity, reduced absenteeism, less injuries, and greater morale.

So, how do you implement a wellness program in your workplace?

Start by picking someone to coordinate the program -- either you, the head of your HR department, or some other capable person. This needs to be someone enthusiastic about health and exercise. If your business is big enough, you may even want to create a wellness committee. They then need to come up with a sensible budget for the program. But remember, every dollar spent should save you more than that down the road.

Next: the person or people in charge need to decide upon the goals of the program and which types of classes might be the most popular. Again, consider:

  • First aid courses
  • Exercise classes
  • Weight loss
  • Stress reduction
  • Smoking cessation

Also consider offering healthier food and snacks, bringing in speakers, and having health-oriented events and contests.

Some employees will likely be resistant, while others will be excited. That's OK. Some internal marketing will probably be required. The important thing is to make the program fun, educational, and flexible. Do that, and watch your workplace change in a variety of healthy ways.

Today’s tip: According to the Service Corps of Retired Executives (www.SCORE.org), here are the top five tips for improving your company website:

  1. Visit the sites of other companies to find out what you like and dislike. Do some sites seem to “work” while others don’t?
  2. Decide what objectives you want your site to meet. Do you want it to be fun, funny, educational, “cool”, or all of those things?
  3. Consider your corporate culture and your company image. Your site should support both.
  4. Design or re-design the site to meet your objectives. Unless you have a real expert on staff, hire a consulting firm to do the job.
  5. Get feedback. Ask customers how your site can be made more useful to them, and keep making improvements."