Should your company offer executive physicals?
Executive physicals are provided to an individual within a company’s leadership team, typically the top senior executives. The physical provided, usually annually, includes a battery of tests intended to identify any underlying health issues and implement an individualized plan to keep the executive well. The idea is to detect an illness early and build a plan to prevent future conditions that may be a higher risk for the patient. For an executive under 40, the executive program typically includes a physical exam, mental health screening, extensive blood work, cardiovascular counseling, resting electrocardiogram (ECG), chest x-ray, exercise & treadmill ECG, cervical cancer screening for women, lifestyle assessment, and includes updates to any boosters or vaccinations that may be missing given their location and travel expectations. Older executives would have additional tests added for risks that present more often with age and executives who have had a prior physical, may have less tests if there wasn’t a risk identified previously. Due to the number of tests and extensive time with a doctor to review the results and suggested plan with the executive, the physical typically spans over a one to two day appointment. Some high-end providers include the service as a wellness retreat to entice executives to participate at higher rates and as an added perk to the program.
In 2008, WTW (then Towers Perrin) reported 22% of Fortune 500 companies offered some form of executive physical to their CEO’s. The International Foundation of Employee Benefit Plans (IFEBP) 2022 Employee Benefits Survey reported 35% of employers offered executive physicals to select executives and key employees. Interest increased during the pandemic in 2020 with concierge services being added providing primary, sick, and mental health care for key leadership allowing access to care not available elsewhere.
Top leadership is notoriously bad at taking care of their own health. They often have packed schedules with frequent travel which can make regular exercise and eating healthy difficult. While executive physicals make it more likely key leaders will receive at least one physical a year that may identify high risk factors, the executive wellness programs have not proven to be effective in bettering the health of top leaders, and acts more as an added benefit to attract senior level talent. Many of the screenings completed without a health need expose leaders unnecessarily to potentially harmful tests (especially for those involving radiation), and typically amount to nothing. Results from the initial physical may actually increase stress and anxiety unduly. In addition, a qualified medical insurance plan does not include executive physical coverage due to the high cost and the unproven benefit, causing the employer to pay for the cost directly which can be anywhere from $1,000 to $10,000, or more for luxury services. Providing executive physicals can also add compliance complexity and expense, potentially requiring the employer to consider the executive program as a separate group health plan depending on how the expense is categorized for tax purposes, how many individuals are provided access, and if additional diagnostic tests or treatment is provided for any issues identified.
Should your company offer executive physicals? There is not enough benefit to justify the cost, especially since preventive care is fully covered under health plans and would provide ample screenings to identify any illnesses early on with regular recommended cadence by a primary care provider based on their individual needs. It is important to take note as to who is promoting executive physicals with greatest determination, and if they stand to financially gain for companies to offer the benefit without the ability to provide evidence based success in utilizing the service.
Encouraging leadership to participate in the company’s holistic well-being program will provide them the care they need to stay well. There is added benefit as a whole for the company as employees see their key leaders valuing the same wellness benefits available to every employee and reiterating the worth of the benefits offered to all. Well-being programs are most successful when top leadership encourages wellness by modeling it themselves and encouraging employees to prioritize their own health and well-being. If your benefits aren’t supporting your leaders enough to keep them well, your time and money are better spent identifying what’s missing to help maximize your programs to ensure everyone is supported.
Contact Centurion At Work today for assistance reviewing your company’s holistic well-being program to ensure it is adequate for employees at all levels!
