From Sunday's
Washington Post:
Tangerine, based in Boston,
designs weight-loss programs that employ economic incentives. The
company is modeled on recent economic research showing that paying
people to lose weight causes their pounds to fall off faster. Eric
Finkelstein, an economist with RTI International who has spoken with
Tangerine executives, recently conducted a study in which people were
paid either $7 or $14 per percentage point of body weight they lost.
After three months, people with no incentives lost about two pounds.
The $7 group lost about three pounds. The $14 group: five pounds.
Members of the more expensive group were also five times more likely
than members of the no-money group to lose 5 percent of their body
weight. One person netted $140. Were they more excited about losing
weight or about the money? "I think they were most excited by the
$140," Finkelstein said.
In Tangerine's programs, employees earn $3 to $7 for every
percentage point of weight lost and may earn additional rewards in team
contests. Aaron Day, the company's founder, has also baked in
incentives for continuing to keep the weight off. "Let's say the reward
is $5 for each 1 percent," Day said. "If I lost 3 percent in the first
quarter, I earn $15. If I lose another 3 percent on top of that in the
second quarter, then I would get $30 because now in total I have lost 6
percent."
…
An average of 140 employees at Wesley Willows participate in the
program, which started eight months ago. They get $3 per percentage
point of weight lost. Together, they have lost 806 pounds. Holmgaard
said the company has spent $11,500 on the Tangerine program, including
rewards. The company's health-care costs have tumbled more than
$146,000. "Certainly paying them gets their attention," Holmgaard said.
You can read the entire article here.
Posted on
Monday, November 12, 2007
by Brad Neese