Cash rewards and discounted monthly premiums provide incentives for employees to meet the criteria of employer wellness programs. Wellness programs control costs associated with employer sponsored health insurance plans, while also encouraging employees to support healthier lifestyles. However, critical questions are raised regarding the voluntariness and qualifications for enrollment in these programs, to what extent employers' financial incentives result in cost shifting to disadvantaged employees, and health risk questionnaires that may conflict with employees' privacy rights. Both consumers and employers would benefit from federal guidance on workplace wellness programs.
The Affordable Care Act (ACA) expands existing wellness program policies and offers employers more leverage to increase employee participation. For example, the maximum reward for participation -- or penalty for nonparticipation -- that employers can implement will increase from 20% to 30% of the health care coverage cost, which applies to wellness programs beginning on or after January 1, 2014. And, wellness programs that require employees to achieve health-related standards, called health contingent wellness programs, must be reasonably designed to promote health or prevent disease and must not be overly burdensome to employees. Those employees who are unable to meet employer designated health standards must be offered alternative means or standards to qualify for wellness program rewards.
Of particular importance is the interplay among work place programs and federal and state protections, such as reasonable accommodations or the confidentiality of personal health information. Employer compliance with ACA wellness program requirements, for example, may not necessarily demonstrate compliance with the Americans with Disabilities Act. The Equal Employment Opportunity Commission (EEOC) will be issuing guidance, which we anticipate will address these concerns.