Wellness

HR Policy members view corporate wellness programs as an important tool for promoting health and productivity, increasing employee engagement, and reducing health costs. Financial rewards are among the most effective incentives to encourage employee participation. Under the ACA, employers are allowed to “reward” employees up to 30 percent of the cost of coverage for participating in a wellness program that requires an individual to satisfy a health status factor, and up to 50 percent for wellness programs designed to prevent or reduce tobacco use. Employers who rely on financial incentives in their wellness programs as spelled out in the Affordable Care Act and its implementing regulations should not be subject to legal action from the Equal Employment Opportunity Commission.