<nobr>Jun 22, 2005</nobr>

ERIC and Deloitte Receive Results of Wellness Program Survey

Washington, D.C. – June 22, 2005 – The ERISA Industry Committee (ERIC) and Deloitte & Touche USA LLP have received the results of its wellness program survey of some of the country’s top corporations.

The survey results were presented by former Secretary of Health and Human Services Tommy G. Thompson, and Barbara Gniewek from Deloitte Consulting LLP, at ERIC’s “Major Employers: Controlling Your Health Care Budget” conference.

“Wellness programs are an efficient and cost-effective way to encourage workers to lead healthier lives,” stated Mark J. Ugoretz, ERIC’s president, “and healthier employees mean lower costs for employees and employers. The survey is a great tool to show employers how their employees take advantage of available wellness programs, and if those programs need to be changed or new ones added.”

Sixty-two percent of companies surveyed said they had taken steps to improve their employees’ health through wellness programs, while 33 percent said they were considering implementing wellness programs.

When asked if rising health care costs played a role in their decisions to offer wellness programs, 64 percent of companies surveyed said yes, while 34 percent said it played a role, but was not the deciding factor.

Thirty-two percent of companies surveyed reported less than 10 percent of their employees participated in company-sponsored wellness programs, and eleven percent of companies said 50-75 percent of their employees participate.

When asked if incentives were used to encourage the use of wellness programs, over half of surveyed companies said they were not. Of companies that did, 48 percent offered incentives such as contributions toward Flexible Spending Accounts; cash awards; discounts on wellness programs such as smoking cessation and weight loss programs; and monthly premium discounts.

“The results show employee participation in company-sponsored wellness programs is less than desired,” Ugoretz said. “But employers see this as a challenge to be met.”

“Employers large and small see the potential in encouraging employees to lead healthier lifestyles by eating better, exercising more and not smoking,” said Tommy G. Thompson, the Independent Chairman of the Deloitte Center for Health Solutions. “Wellness programs are a long-term investment in a healthier, happier and more productive workforce. That will be good for workers’ waistlines – and companies’ bottom lines.”

About the Deloitte Center for Health Solutions

The Deloitte Center for Health Solutions, located in Washington, D.C., is sponsored by Deloitte & Touche USA, LLP. The Center is led by Independent Chair Tommy Thompson, former Secretary of Health and Human Services and former Governor of Wisconsin. The Center is focused on delivering research and solution development for our nation’s most pressing health care and public health related challenges, focusing on prevention and wellness programs, the uninsured, adoption of health information technology, Medicare and Medicaid.

About the ERISA Industry Committee

ERIC is a non-profit association committed to and represents exclusively the advancement of the employee retirement, health, and compensation plans of America’s largest employers. ERIC’s members provide benchmark retirement, health care coverage, compensation and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members’ ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.

For additional information please contact:

Brendan LaCivita, Director of Communications
blacivita@eric.org

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