Athletic program helps companies trim health care costs: gym plan monitors employee wellness to keep premiums down.

COULD the answer to lower employer health care costs be found at places like Spectrum Athletic Clubs'? The El Segundo-based chain of health clubs is morphing its standard corporate membership program into a high-tech wellness program that will allow members to better monitor their health and provide data employers can use to negotiate lower health care premiums.

Spectrum, which has 20 clubs spread across Southern California and Texas, is now offering the HealthMiles program developed by Virgin Life Care Inc., part of Richard Branson's Virgin Group Ltd.

Similar in concept to frequent flyer plans, HealthMiles members earn points by exercising, tracking results and improving key body metrics such as blood pressure, body fat, weight and body mass index (BM1). The points are converted to Virgin Life Care cash that can be redeemed for products from participating retailers. Members can check their health stats either at the health club or Spectrum staff can visit the work site a few times a year to perform health screenings.

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Core to the program is a special pedometer that tracks a person's movement and then uploads the information to a personal Web page. That means participating employees don't even have to work out at the health club, which opens the program to a wider variety of people. And, key to lower health care premiums, the program's software can analyze aggregate data for employers in a way that meets federal privacy standards while allowing them to present the results to insurers.

"'We're a natural fit to be the service provider for a preventative health care model--if we can be sophisticated in how to work with the health care industry and corporations," said Spectrum CEO Matthew Stevens.

Spectrum, which has an exclusive license to offer HealthMiles on the West Coast, began beta testing the program last year internally and at its Texas clubs. It is now gradually roiling out the program in Los Angeles, with several companies either signed up or engaged in trial programs.

Based on the data Spectrum was able to compile from its own 1,900 employees last year, Steven said he was able to negotiate a $250,000 reduction this year in insurance premiums, which in previous years had totaled $1.6 million. He plowed the savings back into a new health plan which covers 100 percent of employees' costs after a $500 deductible.

Of course, such savings may not be possible for all companies. Not only is Spectrum's business physical fitness, of course, but three quarters of its staff holds degrees in exercise physiology.

Staff reporter Deborah Crowe can be reached at [phone], ext. 232, or at [e-mail].