Why Employer-Sponsored Health Plans Are Key to Economic Recovery
Employer-sponsored health plans provide high-quality coverage for approximately 180 million people in the United States. Employers’ active engagement in providing health care coverage is a critical underpinning of a successful and sustainable health care system and a booming economy.
The Covid-19 pandemic has brought into focus the inextricable link between the health of the American workforce, the productivity of U.S. businesses, and the vibrancy of the economy. As people begin to safely return to work and life, the nation is poised to re-engage its workforce, regain momentum, and reignite prosperity.
Employers are uniquely equipped to help support this initiative by making health and wellness a priority for employees. These organizations create a shared culture and common purpose and provide the communication platforms, support tools, programs, and incentives that drive engagement and influence behavior.
Employer-sponsored health plans provide the foundation for corporate cultures promoting health and wellness by providing value-driven health care and services that support both physical and mental health. They also help employers promote benefits and increase engagement. The result is healthier employees who are more present and productive in the workplace.
Employee Health and Productivity
Poor employee health hurts productivity. Five predominant health conditions and risk factors—high blood pressure, diabetes, smoking, physical inactivity, and obesity—cost U.S. employers $36.4 billion per year due to absenteeism.
Even worse, when employees with health issues are on the job, some experience “presenteeism”: they are at work, but they don’t perform at full capacity. The costs of presenteeism are 10 times higher than those of absenteeism. By having employer-sponsored health plans available and encouraging their use, employers can help improve workforce health and reduce health-related absenteeism and presenteeism.
Higher Performance and Higher Returns
Employer-sponsored health plans and wellness programs drive demonstrable business results, reducing costs and producing higher returns:
- A study at one firm reported a 13.5% increase in employee well-being led to an average reduction of 5.2% in medical costs per employee per year.
- For every dollar spent on employee wellness, medical costs fall $3.27 and absenteeism costs drop $2.73—a sixfold return on investment.
- Companies recognized for making investments in employee health have seen their stock prices increase by 325%, as compared with the S&P 500 average appreciation of 105%.
Employer-sponsored health plans also impact the ability to attract and retain desirable, qualified employees:
- 66% of employees say their benefits package is “very” or “extremely” important to job satisfaction.
- 61% would change jobs for better health insurance.
- 89% of workers in companies that support well-being are more likely to recommend their company as a good place to work.
Increased Production and American Prosperity
Businesses are at the heart of the American economy. Productive businesses, always critical in helping the nation rebound from economic downturns, are particularly essential to economic recovery from the pandemic. Businesses need a healthy, able, and available workforce to thrive. A continuous investment in employee health and well-being, via a robust employer-sponsored health plan, is a positive contribution to economic growth.
The unprecedented economic crisis created by the Covid-19 pandemic has demonstrated the vital role of workforce health in driving the nation’s prosperity. As the working population begins to recover and protect itself from this devastating disease, it is more important than ever for employers to view employee health as a valuable investment and growth lever to jump-start a new and vigorous period of prosperity.
By helping people live their healthiest, most productive, and most vital lives, employer-sponsored health plans are key to building a strong U.S. economy and a sustainable U.S. health care system.
Cigna has approximately 190 million customer relationships around the world, and its employer clients play a crucial role in revitalizing the economy. Read the white paper titled The Heart of a Healthy Workforce for more details on optimizing employee health and well-being.