How much does a wellness benefit cost?

Written by Bryan Smith

January 3, 2020



A wellness benefit or perk can have a significant impact on where people decide to work these days. So it comes as no surprise that over 70% of all companies offer some sort of employee wellness benefit today.

Cost is a huge consideration when deciding whether to offer an employee wellness program, but there isn’t a one-size-fits-all plan or price tag. What you pay for an employee wellness program — depends on how you customize the plan you offer.

This article will help you understand which plan details you can tailor to your needs, and how they affect the overall cost of benefits.

What is a wellness benefit?

Let’s start with the basics. A wellness benefit is the fixed dollar amount given to your employees on a month basis to be used towards wellness services.

A wellness benefit can be paid entirely by your business, but most commonly the cost is shared between employer and employee. How much an employee wellness benefit costs each month depends on a number of factors such as:

  • benefit design: a non paid option, a monthly grant, and a dollar for dollar match
  • add ons: fully subsidized options in which employees can use as needed.
  • engagement and usage rates: simply put, usage will determine your overall cost.

Let’s look a little closer at some of the factors that contribute to benefit prices.

Benefit design

Traditional wellness benefits are usually offered in a way where the company negotiates a rate at a local gym or studio, and the employee has has the option sign up and submit for reimbursement.

This has commonly led to underutilization and no real understanding of usage and outcomes.

The benefit options provided by LEON tend to lean more towards your traditional health insurance type plan.

Each plan offers the same essential wellness benefits. What’s different is the split between how much employees will pay for wellness activities vs. your company. Take a look at our options below:

Currently, we have three specific types of wellness benefits that your employer can choose from.

  • Free plan: Our free plan allows you as an employer to offer LEON within your company for no cost. With this plan, employees would cover 100% of their wellness benefit.
  • Grant: The Grant plan allows you to set up a monthly benefit up to a certain designated amount. After that amount has been utilized, the employee would cover any additional fees.
  • Match: With our Dollar for Dollar plan every single dollar spent, will be matched up unto a certain amount chosen by you the employer


Add ons

Add ons have become very popular over the past few years because they tend to be fully subsidized by the employer and add tremendous value to an existing benefit.

Bike sharing, races and other add ons provided a nice secondary perk that can be added to any wellness benefit.




Engagement and usage

Last year, the average annual utilization rate of enterprise employee wellness programs were about 47%, with SMB’s seeing a much higher utilization rate of 70%. That being said, much like traditional health benefits, you pay that monthly premium regardless if they use the benefit or not.

We are different! At LEON you only get billed for what you use. There is no per user fee and you do not pay for employees that are not using LEON. At the end of the month, our billing team will automatically charge you for any utilized benefit + a 5% LEON fee.


You’ve got plenty of options when it comes to choosing a wellness benefit for your company. Even better news? LEON is here to walk you through all those choices. Learn more about providing a wellness benefit for your employees, or get in touch and we’ll help you pick the right plan for your company.

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