Health and wellness incentive programs have major benefits both for employees’ health and in reducing companies’ spending on health care. More and more companies are implementing health and wellness incentive programs every day. When considering the legality surrounding health and wellness incentive programs there are several laws that must be taken into consideration. Here are four examples of some of those laws. The Age Discrimination in Employment Act (ADEA) was signed into law in 1967 by President Lyndon B. Johnson. ADEA forbids age-based discrimination against employees and applicants with respect to benefits. As a result of ADEA’s protections, if a wellness program decreases rewards, terminates, or in any other way discriminates against employees who are over 40, the program could be found to be in violation of ADEA. The 2008 Genetic Information Nondiscrimination Act (GINA) is an Act of Congress that prohibits employers from discriminating against their employees in regard to compensation, conditions, terms, or privileges of employment on the basis of “genetic information”. GINA’s prohibitions include: An employer must maintain all genetic information as confidential medical records. An employer may not require, request, or purchase genetic information. Any disclosure of genetic information must be subject to strict limits. The […]
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Health and Wellness Incentive Plans: Key Laws to Consider
Health and wellness incentive programs have a number of major benefits both to employees health and to companies’ spending on health care. More and more companies are implementing health and wellness incentive programs every day. When implementing a health and wellness incentive program there are several key laws to consider: The Patient Protection and Affordable Care Act President Barack Obama signed the Patient Protection and Affordable Care Act (PPACA) into law in 2010. PPACA is a federal statute and health care reform legislation. When you are planning your company’s health and wellness incentive program, it is important to consider how it will affect employees’ deductibles, copayments, coinsurance, or coverage for any of the services listed in the Summary of Benefits and Coverage (SBC). If your program causes them to vary in any way, that treatment scenario’s calculations must make the assumption that the individual is participating in the wellness program and it will be necessary to include additional language in the SBC. The Age Discrimination in Employment Act The Age Discrimination in Employment Act (ADEA) was signed into law by President Lyndon B. Johnson in 1967. ADEA forbids employers from engaging in age-based discrimination against employees and job applicants with […]
Exploring Health and Wellness Program Types. Incentive and Reward Program Series 4
All Digital Rewards understand the importance of a high-quality health and wellness incentive program in increasing workplace wellbeing and improving company efficiency. There are four main options for health and wellness incentive programs. We have discussed types 1, 2, and 3 in our previous posts in our Exploring Health and Wellness Program Types. Incentive and Reward Program Series. In this post, we will be reviewing Type 4 health and wellness incentive programs. Type 4 Health Plan-Related Outcome-Based Programs are available to individuals enrolled in the sponsoring company’s health plan. Rewards are earned based on meeting certain program-specific desired outcomes required by the company’s health and wellness program. These outcomes could include things like reaching a certain BMI level or quitting smoking, which could be rewarded with a reduction in an employee’s health care contributions. Type 4 programs often include a tobacco cessation program. Health screenings are often required at the onset of a Type 4 health and wellness program in order to establish a baseline for the participants and to allow for easy progress tracking as the program progresses. As is the case for all health and wellness incentive programs, Type 4 programs are required to ensure that there is […]
Creating Healthier Outcomes in Health Plan Related Participatory Programs
Health and wellness incentive and rewards programs have consistently proved useful in engaging behaviors that improving health, moral, and efficiency in the workplace. However, there are legal issues that organizations must consider when planning out a Health Participatory programs. Navigating the rules and regulations of a health and wellness incentive program may seem daunting, but in most cases, a health and wellness incentive provider would tell you that the primary legal requirements can be summed up in five general rules. The five general rules for health and wellness incentive programs included: When creating a health and wellness incentive program, one of the requirements you will have to meet will be ensuring that your rewards and incentives do not exceed the maximum amount legally allowable for the participant. In other words, your rewards will have to stay below a certain percentage of coverage cost. Both the Americans With Disabilities Act (ADA) and the Health Insurance Portability and Accountability Act (HIPAA) have specific rules that are related to the maximum reward allowed. Under the Americans with Disabilities Act, the maximum reward for a health and wellness program is limited to 30% of the cost of employee-only coverage. The 30% includes both financial […]
Is Your Health and Wellness Incentive Program Compliant?
A health and wellness incentive program can significantly contribute to a healthier and more productive workplace. When designing a quality health and wellness incentive program, and thinking about utilizing rewards and incentives as part of your program, it is essential to ensure that your program is compliant with all legal requirements applicable to your particular type of health and wellness incentive program. There are four main types of health and wellness programs we are going to review in this article. Each type of health and wellness program has its unique features and various applicable laws. The four program types we will be considering include: General educational or informational programs are designed in such a way as to provide general health education and information to employees and, on occasion, their families. These voluntary programs make educational information available to employees without requiring the employee to access the information or engage in an activity. These general education programs are not individually tailored to employees, and they do not provide any medical care. Participatory programs that are not health plan-related are created with the intent of encouraging employees and occasionally family members to make healthy lifestyle choices, but they do more than merely […]
