If there’s one thing that the COVID-19 pandemic has taught businesses, it is that employers are a key driver of a healthy workforce.
That’s the key finding of a new Cigna report titled, “The Heart of a Healthy Workforce: Employer-Sponsored Health Plans are Key to Economic Prosperity,” which looks at the inextricable link between employer-sponsored health benefits and employee well-being, business productivity and overall economic prosperity. Read on below for some of the most interesting stats about the impact of employer-sponsored health plans, or click here to get the full report.
1. More than 180 million people—55% of the U.S. population—receive health benefits through employers. (Source: U.S. Census Bureau)
2. Poor health can lead to lost productivity at work. However, broader adoption and optimization of employer-sponsored health plans can make a difference. For every $1 invested in improving the health of the population, the U.S. economy stands to reap up to $4 in financial rewards. (Source: McKinsey)
3. When employees believe their employer cares about their health and well-being, they are 38% more engaged in their work. (Source: Quantum Workplace)
4. Employer-sponsored health plans can be a critical factor in employers’ ability to attract and retain desirable, qualified employees: 89% of workers in companies that support well-being initiatives are more likely to recommend their company as a good place to work. (Source: American Psychological Association)
5. Employee retention rates are higher among employers with robust benefits and wellness programs. In fact, participants in employer health plans are up to 71% more likely to remain with their employers. (Source: Journal of Occupational and Environmental Medicine)
6. Mental health has become a business imperative with roughly 72% of U.S. employers having started, continuing, or planning to expand investments in behavioral health services as part of employee benefits. (Source: McKinsey)
7. More than 60% of employers report that wellness programs reduced health care costs by as much as $2.38 per member per month in the first 12 months and up to $11.12 per member per month by the fourth year of operation. (Source: RAND Corporation)
8. A focus on well-being can help companies lower their overall health-related costs by up to 62%. (Source: Gallup)
9. The savings from wellness and prevention efforts can benefit employers of all sizes. In a recent survey, 48% of small firms and 67% of large firms said their wellness and health-screening programs were effective in reducing utilization and, thus, related expenses. (Source: Kaiser Family Foundation)
10. The employer-sponsored health care system contributes massive socioeconomic value to the United States. A recent analysis extrapolated that the annual social value of employer-sponsored health plans is about $1.5 trillion beyond what policyholders, their employers, and taxpayers pay for it. That additional value is an average of almost $10,000 per life year covered. (Source: National Bureau of Economic Research)
The stats above demonstrate that employer-sponsored health plans and well-being programs not only help people live healthier and more productive lives, but they are also good for business and the economy as a whole. In the long-run, a thoughtful, employee-first approach to employer plans will help companies retain and attract top talent, lower health costs and empower people to bring their best selves to work each day. Click here to dive deeper into Cigna’s The Heart of a Healthy Workforce report.