Gym for Health Insurance Savings?

The author reached the conclusion that the cost of his group health insurance coverage can be reduced by approximately 50 percent if they build a gym. The basis of this recommendation is that the manager reasons that since studies show that people who exercise regularly are hospitalized less than half as often as those who do not exercise, as an example in support of this recommendation. At first glance, the author’s argument appears to be somewhat convincing, but further reflection reveals that it missed more important factors that should be addressed.

Firstly, it is flawed that the manager assumes that Saluda’s employees will exercise regularly if the company build a gym for them.

This assumption is questionable since the mere fact that the gym does not guarantee that Saluda’s employees will do exercise at all. The manager made another flawed assumption that Saluda’s employees do not exercise regularly. If all of Saluda‘s employees already engage in daily exercise, the hospitalization rate will be unaffected by the manager‘s recommendation.

  Secondly, even if Saluda’s employees will exercise after the company build a gym for them, but the employees may not want to go to exercise. It is flawed to assume that the company can reduce the cost of their group health insurance coverage by approximately 50 percent, because some disease has nothing to do with exercise, such as car accidents, so the manager has failed [0 offer any evidence for this claim.

Lastly, the manager did not consider the cost of building a gym for employees which could be more than the saving realized on the group health insurance unless evidence has been provided.

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In short, this assumption must be supported with a thorough cost-benefit analysis of the centralization manager‘s assumption. In summary, the manager made several flawed assumptions is not convincing. The manager reasoned are not persuasive to support this assumption in conclusion. Only with more compelling evidence could this argument become more than just an emotional appeal.