Health care is a much-debated and discussed topic. Employers and individuals feel the burden of rising premiums. According to Kaiser Family Foundation, the average employer contribution for family health care coverage premiums has more than doubled in the past ten years.
Average employer contribution for family health care coverage premiums:
1999: $4,427
2008: $9,325
The CEO of Safeway, Steve Burd, implemented a plan addressing health care costs at the company. According to Mr. Burd, 70% of health care costs are driven by behavior. He designed a plan to incent his employees to get fit and make healthy decisions. The company built an on-site fitness and health center and a cafeteria with healthy meals at Safeway's headquarters.
Mr. Burd compares his plan to that of an insurance company. A driver with a good driving record pays less for insurance that a driver with a poor record. Safeway employees pay less if they don't smoke. They also pay less if they score well on their regular monitoring of cholesterol, blood pressure and weight.
Safeway employees are changing their behavior, and the proof is in the numbers. Over the past four years, health care costs for most companies have jumped 40%. Safeway's health care costs have remained flat.
The Safeway success story has been receiving national attention. I learned on the Safeway Blog that the company, its CEO, some employees were featured on both Good Morning America and ABC World News Tonight recently. To learn more about Safeway's new approach to health care and the benefits to both employees and the company's bottom line:
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