GSA's Healthcare Reform Series: Wellness Incentive Programs

wpengine
May 30, 2013
2 min read

Wellness Incentive Programs

Employer-based wellness incentive programs have existed in the U.S. for a number of years, but the scope of potential incentive programs were expanded by the American Care Act (ACA). The following are changes to Wellness Incentive Programs under the ACA in 2014.

  • The permissible incentive limit is increased from 20% to 30%
  • For tobacco use, the limit is 50% (minus other health-based incentives)
  • Incentive is based on total premium (i.e., the sum of the employee’s and the employer’s contributions)
  • Must still offer reasonable alternative
  • If alternative is an educational program (e.g., tobacco cessation), employer must make the program available and pay for it
  • Potential implications include effect on 9.5% of coverage affordability standard

If you have questions regarding Wellness Incentive Programs and other benefits as they relate to Healthcare Reform, call 1.800.250.2741 or email us at solutions@gsanational.com to contact one of our Healthcare Reform subject matter specialists.
 
Please also feel free to refer to our Healthcare Reform page.

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