Texas Coalition for Worksite Wellness

The Texas House and Senate are currently considering legislation that would encourage investment in prevention and wellness for Medicaid recipients and state employees.

The study, authored by economist Dr. Ray Perryman of The Perryman Group, estimates that if wellness programs are implemented for State employees and Medicaid recipients, Texas could see a net gain in economic activity of billions of dollars and thousands of jobs.  The study also revealed that private sector initiatives are also highly beneficial.

“Wellness programs represent a ‘win-win’ situation by improving quality of life while reducing costs,” Perryman said.

Some of Perryman’s findings include:

• A comprehensive program for State employees offers the highest economic returns on the State’s investment in both absolute and relative terms, with net gains in business activity of more than $338.5 million in fiscal revenues for the biennium and 2,469 jobs.
• A comprehensive wellness program for Medicaid recipients in Texas could be expected to add more than $2.7 billion in annual spending to the economy, generate more than $2.5 billion in fiscal revenues for the biennium and 20,058 permanent jobs even when necessary State spending to support the program is fully offset.
• If all private-sector employers currently providing insurance coverage offered wellness programs to their employees, net additions to business activity of more than $8.1 billion in annual expenditures for other fiscal priorities and creation of more than 42,000 additional jobs would be observed. 

Legislation sponsored by state Sen. Jane Nelson, chairwoman of the Senate Health and Human Services Committee, offers a number of reforms and pilots aimed at curtailing Medicaid costs, including the establishment of a pilot prevention and wellness program that could include the expansion of value-added Medicaid services, including weight loss programs and smoking cessation programs.

“We must find better ways to curtail the rising cost of Medicaid, which has risen 14 percent in the last decade and is expected to grow to 40 percent of the state budget in 10 years if changes are not made,” Nelson said.  “Senate Bill 10 would establish a prevention and wellness program that would improve the health of Medicaid participants while lowering the program’s overall costs.  It makes good sense from a public health perspective and represents effective efficient use of limited state resources.”

Similarly, legislation sponsored by House Public Health Committee Chairwoman Dianne White Delisi would create a State employee wellness program to improve the health and wellness of state employees and designate a statewide wellness coordinator.

“By investing in prevention and wellness, Texas could save $80 million in the first three to five years,” Delisi said.  “This legislation would encourage State employees to take steps to live healthier lifestyles and reduce their chances of becoming sick, which in turn would save taxpayer dollars.”

Incorporating prevention, wellness and value-based benefit design into health care plans has been gaining momentum among Texas employers for some time, according to TCWW.

“Texas health care expenditures totaled more than $114 billion in 2005 with private insurance accounting for 25 percent of that amount, leading businesses to look for innovative, cost-effective ways to manage the expense.” TCWW leader and president/CEO of the Texas Business Group on Health Marianne Fazen said. 

“Some of the nation’s most prominent companies have seen tremendous results by implementing prevention and wellness initiatives into the workplace, including reductions in unnecessary medical costs, reductions in work absences due to poor health and improvements in worker productivity.

“This study provides further proof that prevention and wellness programs work, and by investing in such programs for Texas’ Medicaid recipients and state employees, we will not only be able to better manage health care costs, but we will also improve the overall health of Texans,” Fazen said.

The fact sheet and economic study are available online.

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TCWW, a program of the Texas Business Group on Health, brings together prominent Texas health care associations, providers and businesses, including the Texas Association of Business, Texas Medical Association, Texas Hospital Association, American Heart Association, American Cancer Society, United Ways of Texas, Blue Cross Blue Shield of Texas, CIGNA Healthcare, Sabre Holdings, Texas Instruments, Pfizer, Sanofi-Aventis and others.  Online at www.txworksitewellness.org.