Lakewood takes saving money seriously, and those efforts have resulted in significant savings such as spending $3 million less than was budgeted for expenses in 2008. One way Lakewood has worked to save money is on health insurance. For seven years, Lakewood has provided a wellness program to its employees, and the highlight of that program comes the third week in June each year when the city conducts its Wellness Week.
Employees are able to get their cardiac health assessed with a blood draw that provides good and bad cholesterol levels and a cardiac risk ratio. Body composition, "fitness age" and orthopedic assessments are also available. During the rest of the year, the city has programs such as Weight Watchers and Holiday Hold-Em to assist with weight loss or maintenance, particularly during a time of year when weight gain is rampant. Wellness also includes Lakewood on the Move and Lose to Win to encourage employees to recognize the benefits of diet, nutrition and exercise. Together these programs target the nation's biggest health issues: chronic disease such as diabetes, heart disease and obesity that affect nearly half the population and account for 75 percent of U.S. health care spending at $1.5 trillion annually, according to one study.
Wellness programs ultimately provide a payoff for taxpayers. By encouraging employees to improve or maintain their health, Lakewood is aided when negotiating the price of health insurance premiums for its employees - one of the biggest expenses facing any business or government. Healthier employees generally visit the doctor or emergency room less often, meaning the health insurance is utilized less. By decreasing "utilizations," the insurance company spends less money, and the City has the ability to negotiate for lower health insurance premiums - saving money for the employee, the city and the taxpayer.
Other organizations from the state of Nebraska, where employees were required this year to participate in a wellness assessment, to PepsiCo and IBM recognize the benefits. PCL Construction, the nation's seventh largest contractor, has ramped up its wellness program despite the slowing economy, and President Obama hosted a recent wellness gathering at the White House with top company executives and others.
Wellness programs pay off in other ways. Health care researchers tout workplace wellness as a way to boost productivity through preventing absenteeism or "presenteeism," when an employee is at work but unproductive because of a health issue. Lakewood's wellness inventories performed in previous years show that absenteeism and presenteeism potentially caused by the 11 most commonly reported health issues such as migraines, respiratory issues and arthritis could cost an average of more than $1,000 per employee each year.
The Colorado Department of Health and the Environment and a health care research institute have also noted that wellness programs don't cost a lot and might avoid greater expenses down the road for chronic health problems or disability. Lakewood's wellness program costs about $16,000 a year with money for it coming from rent paid by a private company, donations from a variety of sources including the city's health insurance companies and some smaller sources of money from employees.
Lakewood has taken this proactive approach as a way to promote healthy lifestyles and to save money for all those involved. It's particularly important to ensure that our health care costs remain manageable and that our employees - who provide services to Lakewood residents - remain productive.
Ken Milano
Director
Employee Relations
City of Lakewood
(303) 987-7700