One Way to Lower Health Costs: Pay People to Be Healthy

Knowledge at Wharton

Episode Description

When employers want their employees to live healthier lifestyles -- to lose weight, stop smoking and exercise regularly -- nothing works like cash, according to research led by Wharton faculty. While some may wince at the notion of paying people to do the right thing, the research found that the incentives cost less than the diseases they prevent. đź“‚ Health Care Management;Public Policy

Brief Summary

Financial incentives significantly improve health behaviors like smoking cessation and weight loss, as discussed in recent studies.

Key points

  • Impact of Financial Rewards on Health Behavior. A large-scale study shows financial incentives significantly improve smoking cessation rates.
  • Innovative Weight Loss Incentives. A study among veterans reveals that deposit contracts lead to significant weight loss.
  • Lottery-Based Incentives for Medication Adherence. Lottery incentives drastically reduce missed doses of medication in a pilot study.

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