Exploring Health and Wellness Program Types. Incentive and Reward Program Series 2

BY Lucy Fang
Sep 06, 2018
yoga, health, wellness, incentive programs, Health Plan-Related Participatory Programs, Rewards, incentives,


There are four primary types of health and wellness incentive programs. In a previous post, we explored type 1 programs. In this second post in our Incentive and reward program series, we will be reviewing type 2 health and wellness incentive programs: Health Plan-Related Participatory Programs.

Type 2 Health Plan-Related Participatory Programs require all participants to be enrolled in the sponsoring company or organization’s health care plan prior to participating in the program. Additionally, all rewards from a type 2 program are awarded when an employee participated in the program. Rewards are not based on the results of the employee’s participation. Type 2 programs can include rewards for things like attending tobacco cessation classes, participating in a group exercise program, getting a cholesterol level check, or getting a flu shot. Rewards for these short of participation programs will often be tied to the employee’s health care plan and the rewards can include things like lower copayments or premium holidays.

In many cases, these type 2 programs may include medical care. Medical care includes care that is both provided by a trained professional and individualized to the participant. Medical care can include flu shots administered by a nurse, counseling from a certified mental health professional, or various biometric screenings. Generally, medical care includes amounts paid for diagnostics, treatments, mitigations, and preventions of disease, payment for medical-related transportation, and payment for medical care insurance. When the program is designed to provide medical care, a type 2 health and wellness incentive program will need to be in compliance with the Health Insurance Portability and Accountability Act (HIPAA), the Employee Retirement Income Security Act (ERISA), and the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Type 2 Health and Wellness Incentive Programs must be made available to all similarly situated employees who also are enrolled in the sponsoring company’s health care plan. The program must also provide reasonable alternatives to employees who cannot participate under the program’s general standard but would still like to earn a reward. The alternatives can be developed on a case by case basis and do not need to be prepared before the program’s start. The program also must follow all non-discrimination guidelines and be compliant with the Patient Protection and Affordable Care Act (PPACA),  the Age Discrimination in Employment Act (ADEA), The Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, the Fair Labor Standards Act (FLSA), Cafeteria plan, and various tax laws. You can learn more about the legal requirements for a Type 2 health and wellness program in our article – Is Your Health and Wellness Incentive Program Compliant?

If you would like to take the next steps with your company’s health and wellness incentive program selecting an experienced health and wellness incentive provider to help guide your organization is the first move.  The experts at All Digital Rewards are standing by to answer your questions about health and wellness incentive and rewards programs that can increase your participatory rate and jumpstart your organization’s members to embrace a new healthier lifestyle. We offer a variety of programs that can be custom branded and tailored to fit your organization’s needs. Our Healthy Choice Rewards, Living Well Reward ™ card, and robust Health and Wellness point’s based platform technology all of which can be fully branded and personalized, will set your company’s health and wellness program up for success. With our vast experience in offering rewards programs, we will help you create the ideal health and wellness program for your company. Give our Health and Wellness Reward Program experts a call at 866-415-7703 or click the “Schedule a Demo” button below!

Infographic: Exploring Health and Wellness Program Types. Incentive and Reward Program Series 2