How much do well-structured wellness programs cost?On average, effective wellness programs comprise 1-2 percent of a company’s health care expenses. Costs will vary depending on the size of the organization and the extent of the program.

How soon will my company realize cost savings from an effective wellness program?Like so many things, “it all depends,” with a strong employer commitment being one of the key determinants. Effective programs require initial and on-going expenditures and time commitments. That said, the costs usually diminish over the long-term and start delivering savings commensurate with the quality of the employer’s commitment. Companies can employ a variety of insurance-related and outreach-oriented strategies to keep even the initial costs low.

The economic benefits of effective wellness programs can be significant. The greatest savings should be expected to accrue over time. Even the simplest of these programs have demonstrated reduction in health care costs, inpatient stays and sick leave over a one or two-year period. Research shows that eventually, employers can generally expect a cost/benefit ratio of 1:2 to 1:6 or higher. The economic benefit of these programs can be enhanced by such factors as the enthusiastic support of management, counseling and follow up measures and clear incentives for healthy lifestyle changes.

How do I talk to an employee about a potential alcohol or drug problem?
It always important to talk to your human resource professional to determine if your company has a policy to deal with such situations. Eventually, if your company has an EAP, it is likely they will be consulted about how to appropriately address the problem. In addition, you may want to review the following article from the Hazelden Foundation, “Talking About Alcohol and Drugs in the Workplace.”

How should colleagues support an employee who has returned from treatment?
With honesty, acceptance and understanding. You can also check with your HR professional or EAP representative about specific ways you can support recovering employees in the workplace. You may also want to read “Workplaces Can be Supportive of Recovering Workers.”

I understand the importance of covering addiction treatment but my company seems to be interested in finding the lowest-cost health insurance policy. How can I be an advocate for insurance coverage for treatment?It’s all about education and collaboration. Research demonstrates overwhelmingly that collaborative solutions to alcohol and other drug problems are much less expensive than the costs. Effective collaboration most likely includes an ongoing commitment by the employer, the employee, the EAP and the employer’s health insurer. See the following primer, which outlines how alcoholism treatment more than pays for itself in subsequent healthcare cost reductions and provides many other benefits as well: “A Sound Investment: Identifying and Treating Alcohol Problems”

In addition, Congress recently passed a “parity” bill requiring certain employers and health insurers to put their mental-health and substance-abuse coverage on par with their physical-health coverage. Read more about the new law, which goes into effect in October 2009, here.