Why IBM Is Giving $150 Health Rebates

Executives at IBM's Research Triangle Park campus in North Carolina are convinced that employees who exercise regularly are more productive and have lower health care costs. As a result, the company is now paying a $150 one-time "Healthy Living Rebate" to employees who exercise at least three times a week for ten weeks.

Dr. Joyce Young, who oversees IBM's health promotion programs in the Southeast region, said the company is confident the one-time rebates represent well-spent investments. Dr. Young cited industry research that showed companies can save $4 per employee in reduced medical costs and $5 per worker in increased productivity for every dollar spent on health promotion. However, the doctor noted that it can take a company up to five years to realize those financial returns.