According to a study by PriceWaterhouseCoopers, 84 percent of large company CEOs view healthy living incentives as the most promising tool to drive health care cost reductions.

Employers and health insurers are increasingly eyeing disease and health management programs as a means to ensure a healthier workforce. Some companies and health plans are looking at a powerful motivator to entice their employees to participate: cash incentives.

“A robust incentive strategy, whether it offers cash, non-cash or a combination of the two is critical to the success of any health management program,” said Michael Dermer, president and chief executive officer of IncentOne, a health and productivity incentive solutions provider.

Less obvious but no less real are benefits to employers, who save money that might otherwise be lost due to sick days or increased health care utilization. According to a study by PriceWaterhouseCoopers, 84 percent of large company CEOs view incentives as the most promising tool to drive health care cost reductions.

IBM has paid out $130 million in wellness incentives, an investment in its workforce the company expects to pay off as it encourages employees to participate in walking teams or play basketball during their lunch breaks.

Nearly half of major U.S. employers offer healthy living incentives to their employees.

“Data from clinical studies shows that healthier employee behavior pays off for employers in the form of decreased health care costs, improved productivity and reduced absenteeism,” Dermer said. “The key is to develop a properly designed incentive program that recognizes the role of disease prevention and health management, and aligns rewards with an individual’s desire to achieve health improvements in a positive way.”