Health Insurance Daily

IBM Employees Quit Smoking

According to an article in the San Francisco Business Times, IBM is putting its money where its employees' health is.

The computer giant spent $25 million last year, including about $1.3 million in the Bay Area, on "rebates" to employees who took tangible steps to pursue healthy lifestyle choices such as exercising regularly and not smoking.

It expects to expend similar sums this year, as part of a "long legacy" of being supportive of its employees, said Joyce Young, global director of "well-being services" and health benefits, based in IBM's Research Triangle Park, N.C., offices.

Workers who don't smoke get a $150 a year bonus, as do those who sign up and meet the commitments for a physical activity program that requires a weekly minimum of three exercise sessions lasting at least 20 minutes each.

IBM believes the programs will help it lower overall health-care costs, reduce absenteeism, enhance productivity, cut workers' compensation and disability costs, boost morale and improve employee recruitment and retention efforts.

"Preliminary data shows that (health-care) claims costs for people who exercise (in the IBM programs) are about $350 less annually than for those who don't," Young said. And other benefits-related costs are also expected to drop.

posted by Mike @ 2:35 PM