Lowering Costs by Encouraging Healthy Behaviors – October 2005

The value of having healthy employees is indisputable. Healthy people use less medical care, disability benefits and worker’s compensation. They have increased productivity and decreased absenteeism. For many health plans, it is estimated that a staggering 60 to 70 percent of costs are due to conditions related to modifiable personal health behaviors, such as physical inactivity, poor diets, smoking and problem drinking. This FYI spotlights the impact of these risk factors and creative ways that health care purchasers are encouraging healthier behaviors.