First Long-Term Health and Wellness Program Evaluation Confirms Employee Benefit, Company Savings for Johnson & Johnson New Brunswick, NJ (January 24, 2002) The first long-term evaluation of the financial and health impact of a large-scale corporate health and wellness program has shown that participating employees have significantly lower medical expenses and achieve overall improvements in several health risk categories, such as high cholesterol, hypertension and cigarette smoking. The two-part study was conducted for Johnson & Johnson, the world's most comprehensive and broadly-based health care company, by The MEDSTAT Group, Inc., of Ann Arbor, Mich. The evaluation included a financial analysis of medical insurance claims for 18,331 Johnson & Johnson domestic employees who participated in its Health & Wellness Program from 1995 to 1999. Reduction in medical care costs amounted to a savings per employee of $225 annually. The savings came from reductions in hospital admissions, mental health visits and outpatient service use. Savings grew over time, and most came in the third or fourth year after the program began. Employee medical expenditures were evaluated for up to five years before and four years after the program began. Johnson & Johnson savings averaged $8.5 million annually for the same four-year period after the program began, primarily due to lower administrative and medical utilization costs. |