Healthcare Costs

Did you know that almost 90% of employees face at least one financial problem? Financial stress doesn’t just affect employees’ wallets—it takes a serious toll on their physical and mental health, which in turn drives up healthcare costs for employers. Stress-related behaviors like overeating, smoking, drinking, and even marital issues are all-too-common coping mechanisms for financially overburdened employees, leaving them less productive and more prone to illness.

A recent study revealed that acute and chronic health conditions cost U.S. businesses an estimated $1 trillion annually, with financial stress being a significant contributor. Financial stress directly impacts physical health, increasing risks of heart disease, high blood pressure, and mental health issues such as anxiety and depression. This often leads to higher rates of absenteeism, presenteeism (working while unwell), and increased healthcare utilization—all of which hurt your bottom line.

Financial wellness programs are a game-changer for reducing healthcare costs. A study of a Fortune 100 healthcare company found that employees who participated in financial wellness programs decreased employer healthcare costs by 4.5%, while costs for non-participants increased by 19.4%. The result? A cost savings of $271.50 per employee—equivalent to over $13.5 million for a company with 50,000 employees.

Implementing a financial wellness program can also slash overall healthcare costs by as much as 14%. These programs teach employees essential money management skills, reduce stress, and encourage healthier behaviors. Employees who feel financially secure are better able to focus on their work, take care of themselves, and avoid the physical toll of stress.

More Effective Than Insurance Incentives
Studies show financial wellness programs outperform health insurance incentives in reducing stress and improving productivity. By addressing daily financial challenges, these programs help employees gain confidence through education, debt management tools, and goal-setting features.

Healthier, less stressed employees mean fewer sick days, lower healthcare costs, and a happier, more productive workforce. Invest in financial wellness—it’s an investment in your employees’ health and your company’s success.