Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Bicycling

A Bike Company Offers a Prescription for America’s Health Care Cost Crisis

false

One of the most talked-about presentations at this week's National Bike Summit came from Jason Gaikowski, director of sales for the Bloomington, Minnesota-based wholesale distributor Quality Bicycle Products. Over the last several years, QBP has ramped up its employee health and wellness program, which includes incentives to bike to work. At a time when most employers are grappling with rising insurance premiums, a study by the company's health insurance provider, HealthPartners [PDF], suggests the program has helped reduce QBP's health care costs and increase employee productivity.

Gaikowski made the case that QBP's example bears a lesson for the nation's transportation policy makers: Investment in infrastructure that supports active transportation can help rein in the country's skyrocketing health care costs.

While you probably want to take research on the health benefits of cycling commissioned by a bike company with a grain of salt, Gaikowski's basic premise has already been embraced by the experts at the Centers for Disease Control. The QBP/HealthPartners case study adds some intriguing data about the potential impact of bike commuting on employee health and the corporate bottom line, and it suggests some areas ripe for further study.

As part of its wellness program, QBP offers a few inducements for employees to commute by bike: The company provides secure parking and showers at work, and it pays employees $3 each day they ride to work. The cash payments add up to about $45,000 each year.

While the study doesn't isolate the impact of bike commuting on lower health care costs, the program seems to be paying off. HealthPartners reported that participants in the "Bike to Work" program (about 100 of QBP's 464 employees) cost approximately $200,000 less per year in health care claims annually, based on a comparison with employees who don't participate in the program.

QBP's overall health care expenses declined 4.4 percent between 2009 and 2011, according to the report, while on average health care costs for American companies rose 24.6 percent during the same period. HealthPartners attributes some of the decline to QBP's Bike to Work program, as well as employees' healthier eating habits and a shift to generic drug purchases.

In addition, HealthPartners reported that QBP's health and wellness initiative, of which the Bike to Work program is the most significant component, is boosting employee productivity. With employees missing fewer work days due to health-related problems and overall health scores improving, the insurer estimates that the wellness program prevents the equivalent of $300,000 per year in lost productivity.

"I know that at QBP we have found that very simple and affordable investments to remove barriers to bicycle commuting have paid substantial returns to our business in decreased health care costs, increased productivity, and the overall well being of our company," says Gaikowski. "My hope is that similar common-sense investments in our national infrastructure will be made – and pay similar returns to our citizens."

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Are Still Unsafe

Traffic deaths are declining for those ensconced in thousands of pounds of steel. For the rest of us, not so much.

April 12, 2024

Measure HLA Is Now Officially Law for L.A. City

Check the city maps to find what bus, bike, and walk improvements are coming to streets in your neighborhood.

April 12, 2024

Talking Headways Podcast: Women’s Transportation Seminar

Sara Stickler of WTS International on women’s expertise in transportation and opportunities for mentorship, leadership and education.

April 11, 2024

Don’t Call Thursday’s Headlines a Comeback

Transit ridership isn't all the way back yet, but it continues to climb after collapsing during COVID. Unfortunately, the financial effects of the pandemic on transit agencies still linger.

April 11, 2024

Long-Awaited Report Reveals Widespread Parking Crime by NYPD

The overdue report confirms years of Streetsblog reporting on placard abuse, illegal parking and enforcement failures by the police under two mayors.

April 11, 2024
See all posts