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-- -- thank you very much.
Companies are trimming the fat but maybe not the way you think big businesses are launching wellness programs that pay workers to lose weight.
With the company's -- and cut down on corporate insurance costs and health care coverage our next guest has set up such program for some of the biggest.
Companies in the country we are joined by co-founder of healthy.
Wage dot com David -- -- thanks for being witness David.
So how's this irony that us how's this work you you charge -- of voice of a company and then what do you do for me to help -- lose the weight.
Yeah we organize -- -- challenges weight -- competitions.
At large employers across the country.
-- employees but little skin in the game so they put in a little bit of money and they have the opportunity to when large cash prizes for losing weight -- to 101000 dollar grand prize.
For the the team that loses the greatest percentage -- -- challenges that sap.
A fun way to get the employees involved in weight management because they like the competition -- -- the teamwork being in teams of five.
And of course who doesn't like winning -- 101000 dollar -- practice right you know competition can be great I remember right was at one company we did -- some weight competition and all -- Lost a little bit -- -- even though one of us.
One it sounds like a great plan what.
Give us some big names of some companies -- back -- been able to get to do this.
Yeah out what we have about fifty of the fortune 500 operating our program to their employees including companies like CB data you Office Depot Sonic Automotive.
Phillips 66 Huntsman.
-- as well as that municipalities and school districts like they -- -- school district Dallas school district cost and Tom Memphis Cleveland.
It sounds like a great motivate her.
Now I'm trying to figure out how you make money on this and it turns out to producer -- the package together forth and talk a -- came up with this so.
I pay 300 dollars in if I lose the weight I get a thousand dollars.
But if I don't -- pocket the 300.
Now what percentage of the time to end up losing the weight that I need to lose to get back a thousand.
Out and well our our -- it's about that fifteen to 25% and that program.
While so I pay 300 bucks only 25% chance of you losing the weight which means you get did.
-- get to keep like 220 bucks or something out of that 300 that's a pretty good profit margin for you want you kind of betting on failure.
In the same way our health -- sold 4000 memberships -- chat room for only a thousand that knows that the other 3000 of us we're gonna go that much.
Well I don't I don't really think so our you know there's robust academic literature showing up financial incentives cash money.
Is that a way to make your weight loss more successful more effective so our our participants are making my weight loss -- set -- -- asset speak.
They're also doing had a gym membership oral Weight Watchers are Nutrisystem and -- UCR program as a way to make their weight -- more fun and more successful so the vast majority of people who make up that attend the 300 back stand up.
Losing some weight in our program even if we only pay out you know 5025% of the people the F thousand dollar priced right it's pretty good Molly got on their data now.
Now I'm just wondering do you think we'll get to a point where employers.
Will make me pay more.
When I'm fat instead of targeting the same rate they charge a slender employee -- it seems like if -- cost the company more they've except the patent war that's -- reverse of what you're doing.
Well I think that I'm companies are you know part of it is that cost shifting you know sort of like I'm not a penalty York.
You know your your -- -- employees stationed there are more -- that that risk are they on the burden.
I think who more more so than that and employers wanted to help -- employees change their behavior.
And cash is an effective way to do so it's it's very tricky how do you structure financial incentives -- -- -- that you're actually gonna move the needle and so that's really healthy wages mission is.
In how how if if I pay you fifty backs -- -- hundred acts are 150 bucks what's it gonna take.
To get you to lose the weight yet and that's -- we're working with companies have to figure out how to structure those plans and actually change -- -- it's a great idea one last quick answer.
Want to go consumer with the set up a website let me go in there and do this -- gamble with you back report -- -- even requiring my employer be part of it.
We are direct to consumers -- at a healthy ways that -- you can but make a little wager and and win some money if you're successful losing weight.
Bingo sounds like a great idea I'll take -- on thank you very much for being with us David -- -- -- healthy wage dot com.
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