HealthCare Reform:Implications on Wellness Programs

Below is an article addressing the changes to Wellness Programs that the new health care reform legislation is imposing on employers.  At Jackson Kahl Insurance we provide the resources and tools neede to stay compliant as well as maintaining a competitive benefits package for your associates.

Under the recently passed health care reform legislation, employers can offer increased incentives to employees for participating in a workplace wellness program or meeting certain health status targets starting in 2014. Grants will be made available for small businesses who implement comprehensive workplace wellness programs starting in 2011, and technical assistance will be made available to companies of any size.

Wellness Incentive Increases

Existing wellness regulations under HIPAA permit wellness incentives of up to 20 percent of the total premium, as long as the program meets certain conditions. Under the new legislation, the potential incentive increases to 30 percent of the premium in 2014 for employee participation in the program or meeting certain health standards. Employers must offer an alternative standard for those employees whom it is unreasonably difficult or inadvisable to meet the standard. Following a governmental study on wellness programs, the incentive may be increased to as much as 50 percent.

Small Employer Grants

Under the new legislation, there will be a five-year, $200 million program for implementing comprehensive workplace wellness initiatives starting in 2011. Grants will be available to eligible employers who provide their employees with access to a new workplace wellness program. Eligible employers include businesses that employ fewer than 100 employees who work 25 hours or more per week and did not have a workplace wellness program as of March 23, 2010. To be eligible for the grants, wellness programs must be made available to all employees and include:

-         criteria related to health awareness including health education, preventive screenings and health risk assessments;

-         efforts to maximize employee engagement;

-         initiatives to change unhealthy behaviors and lifestyle choices; and

-         a supportive environment at the workplace including workplace policies to promote healthy eating, increased physical activity and improved mental health

Technical Assistance

Companies of any size will be eligible for access to technical assistance, consultation, resources and other tools to help evaluate, analyze and monitor their wellness program set to be made available no later than two years after the date of enactment.

If you have questions regarding this important legislative development, please contact us at Jackson Kahl Insurance and Discover the DIfference.