In today’s turbulent economy, every benefits program dollar counts. The positive return on investment (ROI) from investing in employee financial health is well-documented, with studies citing $3 returns for every $1 spent on workplace financial wellbeing. Yet, benefits teams still need to build the strongest business case they can when budgets are tight.
Enter the concept of wellness dollars; funds that can transform your approach.
Wellness dollars are allocated from insurance companies and can reduce the top-line cost to provide a trusted financial wellbeing program. They can also sweeten the deal with incentives for employees that drive incredible wellbeing program engagement.
In this guide, we’ll dive into wellness dollars and how they can be a win-win for your workplace.
What are Wellness Dollars?
Wellness dollars are allocated funds from insurance companies to corporate clients for qualifying employee health and wellness initiatives. The rationale behind this investment is that wellbeing programs enhance employee health, thus reducing the number of healthcare claims for the insurance provider.
Known by various names—wellness incentives, health dollars, or wellness credits—wellness dollars operate on a use-it-or-lose-it basis. The allocated funds do expire, but they remain accessible throughout the year. This enables companies to launch new wellness programs mid-year and cover some (or all) of the costs with wellness dollars.
How to Use Wellness Dollars to Fund Your Financial Wellbeing Program
The process for employers to tap into corporate wellness dollars offered by insurance companies can vary. This depends on the specific insurance provider and insurance plan terms.
The general steps to access wellness dollar funds typically involve the following:
- Review the Insurance Plan
- Contact the Insurance Provider
- Understand Eligibility Requirements
- Design Wellness Initiatives
- Submit a Proposal
- Obtain Approval
- Implement Wellness Programs
- Compliance and Reporting
- Utilize Remaining Funds
Review the Insurance Plan
Read through your group health insurance plan and any wellness-related provisions. This will provide information on whether your insurance company offers corporate wellness dollars and specific details about the amount available and the eligible wellness activities.
For companies with access to wellness dollars through their insurance provider, but no current policy inclusion, consider negotiating this addition before policy renewal to expand your employee wellbeing offerings.
Contact the Insurance Provider
Once you have identified that corporate wellness dollars are available, contact the insurance provider to get more information about the program.
This may involve speaking with a representative from the insurance company's customer service or wellness department.
Understand Eligibility Requirements
The insurance provider will outline the eligibility requirements for accessing corporate wellness dollars.
Eligibility requirements can include factors such as the number of covered employees, the size of the organization, and any specific wellness program participation criteria.
Design Wellness Initiatives
Based on the insurance provider's guidelines and the needs of your employees, you can design wellness initiatives and programs to fit your workforce’s needs.
Approved wellness dollar initiatives can include:
- Launching trusted financial wellbeing benefits with LearnLux
- Incentivizing financial wellbeing program signups
- Offering rewards for completing certain activities (setting up an emergency fund, creating a budget, speaking to a Financial Planner, etc)
- Sponsoring a prize for participation in a 30-Day Financial Wellbeing Challenge (or similar activity), and more
Submit a Proposal
You may need to submit a proposal or plan detailing the wellness initiatives you intend to implement, and how they will utilize the corporate wellness dollars.
This proposal may include information about the expected outcomes, and how the initiatives align with the insurance provider's wellness goals. For example, workplaces with a financial wellbeing program see their healthcare costs decrease by 4.5 percent, resulting in a savings of $271.50 per employee.
Obtain Wellness Dollar Plan Approval
After reviewing the proposal, the insurance provider will determine if the plan meets the eligibility criteria and aligns with the wellness dollars' purpose. If approved, you will receive confirmation and access to the funds.
Implement Wellness Programs
With the approved corporate wellness dollars in hand, you can start implementing or incentivizing your financial wellbeing programs. This process may involve collaborating with wellness vendors, arranging workshops or activities, and communicating the initiatives to employees. Looking for a trusted financial wellbeing partner? Our team at LearnLux is experienced in working with wellness dollars and will support your team every step of the way.
Compliance and Reporting
Throughout the financial wellbeing program’s duration, track employee participation and outcomes. This data may be required for reporting back to the insurance provider and assessing the program's effectiveness. Data could include employee participation, improvements and outcomes, and overall program results.
LearnLux offers robust reporting, allowing employers to share reporting for wellness dollar compliance without lifting a finger.
Utilize Remaining Funds
If there are extra corporate wellness dollars at the end of the plan year, check with your insurance provider regarding the policy on rolling over funds or utilizing them for future wellness initiatives.
To make the most of available wellness dollars, it's essential to proactively engage with your insurance provider and wellbeing vendors.
LearnLux can contract and implement quickly, allowing employers of all sizes to make the most of their wellness dollars before year’s end. Reach out to our team to learn more about workplace financial wellbeing, and use your wellness dollars (before you lose them!).
In the face of ongoing economic uncertainty and budgetary constraints, wellness dollars have emerged as a strategic solution for benefits teams striving to maximize the impact of their financial wellbeing programs.
By tapping into these funds provided by insurance companies, benefits teams can stretch their budgets further while simultaneously boosting employee engagement through enticing incentives.
Wellness dollars offer a win-win scenario, enabling businesses to prioritize employee financial health without compromising cost-effectiveness. Embracing this innovative approach can pave the way for a more resilient and thriving workplace in today’s turbulent economy.