U.S. companies are expanding their health and wellness programs, but many employees don’t participate in them, leaving millions of dollars of unclaimed incentives.
These are the findings of a new wellness programs survey from Fidelity Investments and the National Business Group on Health (NBGH).
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The study reveals employers will spend an average of $693 per employee on wellness-based incentives in 2015, up from $594 in 2014 and $430 five years ago.
Of the 79% of companies offering health programs, larger companies (those with more than 20,000 employees) are spending the most on these programs: their per-employee average climbed to $878, up from $717 in 2014.
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The average for companies that have between 5,000 and 20,000 workers rose to $661, up from $493 in 2014.
As the design of wellness programs evolves, employers are increasingly using incentives, such as cash, gift cards, reduced health care premiums or a contribution to a health care account.
The three most popular incentive-based health improvement programs for 2015 are biometric screenings (72% of employers plan to offer them), health risk assessments (70%), and physical activity programs (54%).
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No employers plan to use disincentives for not participating in physical activity programs, although 17% continue to attach disincentives for not participating in smoking cessation programs.
Despite employers’ efforts, only 47% of employees earned their full incentive amount in 2014, while 26% earned a partial amount.
“The next challenge for companies is to continue to find ways to increase participation in these programs and encourage employees to earn the full incentive amount available to them, which will contribute to their financial well-being as well as their physical health,” says Robert Kennedy, health and welfare practice leader with Fidelity’s benefits consulting business.