The article started “Clarian Health apparently has decided the punitive approach may not be the best way to motivate employees to shape up”.  The VP of Human Resources at Clarian said “focus groups and staff meetings revealed that many workers were so focused on potential increases to their insurance premiums that they could not focus on the wellness initiatives and behavior changes that Clarian was trying to encourage”.

Remember, we’re a healthy bunch of people here in Indiana.  We are leaders in the country in the number of our citizens that smoke or are overweight.  Indianapolis has more all-you-can-eat restaurants per capita than any city in the country.  Way to go Hoosiers!

And god-forbid the largest health-care group in the state and one of our regions largest employers wants their employees to be as healthy as their patients.  The nerve.

Clarian employs 12,000 workers.  Let’s have some fun and do some math.  You know I love numbers.  According to the Kaiser/HRET Survey of Employer Sponsored Health Benefits (2005) the average annual premiums for a single coverage insurance plan was $4,204, and $10,880 for family coverage. 

So, let’s say that 40% of Clarian’s employees receive single coverage, 40% receive family coverage, and 20% don’t take company insurance.  If the company picks up 80% of the cost, they pay $3,219 or $8,704 depending on the type of coverage. 

4,800 employees at $3,219 = $15,451,200

4,800 employees at $8,704 = $41,779,200

So, conservatively, Clarian spent nearly $60 million  in 2005 on insurance costs for their employees.  Worse yet, Clarian indicated their insurance costs increased 12.9% in 2006 and 15.7% in 2007.  So, adding in these costs increases, Clarian’s insurance cost went up to nearly $75 million. 

Isn’t it reasonable that employers should have the power to reign in ever-increasing costs?  Shouldn’t employees who cost more pay more?  Shouldn’t those employees who take bigger risks with their health pay bigger premiums?

I consider myself a strong employee advocate.  However, I am also a businessman.  It takes guts for employees to complain about an increase in insurance premiums when they choose not to take advantage of company sponsored health initiatives, whether carrots or sticks.

One Clarian employee said it all.  Larry Jones stated “Why should I have to pay because I smoke?  Smokers have rights too.“  You gotta love employees.  Clarian has rights too.  They can choose to save $75,000,000 a year and not offer insurance to any of their employees.  What will that cost Larry?

Makes paying $5 every other week for smoking seem like a good deal.