My Insurance Insider and Finance Blog

Image via WikipediaIt is needless to say that the cost of healthy living is going up every now and then. And when it comes to health insurance cost, you end up spending a decent part of your paycheck. Health insurance premium is one of the most irritating of bills for the average family. You may be running out of money before the end of your budgeting month or you may be somewhat relax if your health insurance cost is paid off by your employer that obviously have some limitations. And what, if you’re laid off?

But when I say that you’re just going to get a revolutionary concept/system in the health insurance industry where you can even get your health insurance policy conditionally free. Won’t believe this? You must. Recently I’ve gone through an exhaustive report which tells a new innovative way of getting your cheapest health insurance policy. Jack Mason, a software engineer from Nature’s Sunshine Products works out for two hours a day before he goes to work. His diet chart is replaced with more and more fresh fruits and vegetables, and anything like that.

Of course this is a voluntary subsidized program(by the employer) such as weight watcher’s meetings, free blood screen, discount for off-site gym members, lifestyle couching for motivating the employees meeting their health goals.

Nearly 550 workers participate in this program and it pays off for both sides. Eventually Nature’s health insurance costs are rising at a diminishing rate i.e. less than two percent a year (as compared to double-digit jumps for other companies) that saved the company an estimated $5.5 million since 2003.

And Mason, the pioneer in this case who weathered a bad bike accident, earns up to four hours of paid time off every six months and get free health insurance. Interestingly those who don’t participate in this health screening must pay off more.

Rewards for healthy behavior and penalties for those who reluctant to do are compelling the employees to opt for such program. Utah employers are turning to wellness programs to help them reducing their health care costs and boosting employee’s productivity .Unfortunately premiums across the state of Utah are expected to jump an average of 10 to 12 percent in 2009, according to SelectHealth-the state’s largest insurer.

Christine Frazier, Nature’s insurance benefits manager, said-”the traditional insurance model of if I get sick I can go to the doctor and he can fix my problem” has to go, and a similar belief echoed by lawmakers who are trying to reform Utah’s health care system.

National figures show that 70 percent of health care pays for preventable conditions, employees should “feel like they do have a responsibility to address some of these issues before they become chronic,” she said.

This new rules could be applicable to group health plans that had gone into effect from last July. And seemingly they do allow employers to offer rewards to nonsmokers, employees who have a cholesterol level under 200 or a body mass index(BMI) below 25

For instance, while employers can’t tell a diabetic to lose weight or a smoker to quit, they can require the diabetic to participate in nutrition classes and the smoker to track the number of cigarettes he or she smokes each day, said Darrell Moon, CEO of Murray-based Health Behavior Innovations.

Ken Garff, an auto dealer sets his cholesterol, body fat and blood pressure benchmarks high, 60 percent of participants in the wellness plan don’t meet them and must work with coaches - along with its incentive. Participants get nearly $500 off of health insurance a year, said Erin Johnston. Another benefit: Their cholesterol, blood pressure, body fat, doctor visits and health care claims have dropped.

Employees in other programs report cutting back on fast food, reducing blood pressure without taking drugs and needing to buy smaller sized dresses.

Moon, a former hospital administrator, acknowledged ‘it’s a radical shift for employers to design their benefits around prodding the sedentary American into a more active, diet-conscious lifestyle’. But he expects it will be the norm within a decade.

Greg Cox, assistant human resources director at Logan City, said employees were skeptical when they learned they would start paying $25 to $50 more a month for health insurance, starting in July, if they don’t participate in SelectHealth’s wellness program. Some thought, getting their blood pressure, cholesterol, blood sugar level and body fat tested was intrusive. Others said they were too busy to take health classes and work with a coach.