Would they or wouldn't they? (smoking, heart, insurance, hurts)

[florida.bob]

Lets assume that most people are interested in obtaining and maintaining healthier lives. What companies, industries, organizations, etc. have an interest in people achieving that and which would not? Also, why would they or wouldn't they?

[foma]

Industries where "looks matter" would have an interest. All others, to a certain degree I don't think companies care. At least not outwardly unless it's starting programs like smoking cessation, fitness programs etc.

I don't think I'm understanding your question though.

[florida.bob]

I think you got the gist of it, looks matter to many companies. I am trying to get an idea of what would motivate the companies, etc. Financial gain, good/bad intentions, etc. For example, I think Taco Bell Corp would like their employees to be healthier, more productivity, less missed work ... but they may not be in favor of you and me striving to be healthy, because that would mean we wouldn't go eat there. This type of answer is what I'm looking for.

[foma]

So you mean from a marketing standpoint? Like, what companies would market a "healthy lifestyle" to the consumer? Or from an employee standpoint? Like, what kinds of investments would companies make so their employees live healthier?

[florida.bob]

Basically from a bottom line standpoint with companies. Like General Motors, there would be bottom line value of having a healthy workforce and I don't see where they would gain if not. A Health Ins company. My first thought is that it would be good for them if their customers made fewer claims, but is that really true? Is the premium price formula something like this: Profit = (premiums - costs) + profit %.
They would try to keep premiums equal to cost and the profit is a percentage of that. So if the (cost -premium) number increases, so does the profit. I'm just saying look at a company or industry, and think thru what would make sense.

[foma]

I see your point. Maybe someone in the insurance biz can enlighten the conversation because honestly I would just be speculating. The "bottom line" is essentially (as you similary stated):

Revenue - expenses = Gross profit

Patients making claims obviously is a cost (expense) to the insurance company so yes, there would be an incentive for large corporations to have "healthy employees". How premiums are calculated is where an "insider" can help this conversation! My guess is, insurance companies would want their customers to be as healthy as possible because it lowers their expenses. They will get premiums regardless if they have a "healthy or sick" customer but they will definitely incur costs if they have a "sick customer".

Let's look at an example. Employee A and employee B work for Company W. Employee A has been healthy his whole life and let's say the insurance company makes $100,000 profit from Employee A before he dies from a sudden heart attack/car crash/whatever.

Now let's look at Employee B. Same exact circumstances except Employee B is morbidly obese. From the insurance perspective, they make $100,000 off of Employee B but the insurance company incurred $10,000 in medical expenses to fight his obesity. That brings profitability down to $90,000. However, to try and "make up" the expense, they charge Company W $5,000 extra in premiums. Company W has to pay more for Employee B and the insurance company is still out $5,000. It would've been beneficial for both the insurance company and Company W to get employee B healthy as long as there is a cost-benefit.

You can change the scenario to make it look beneficial for any situation, of course, but that's my "ball park" answer for you!

[florida.bob]

That's exactly the kind of response I am looking for. I think there are many people on this forum that can help all of us gain some understanding thru their thoughts. Whether we agree with them or not. Thinking, never hurts.