There has been much ado about incentives for wellness programs in organizations. This is all in a bid to increase productivity in the workplace. One of the major issues has been the feeling of most employers that there needs to be penalties and not just rewards as a way of encouraging the wellness of the employees in the organization.
One of the bones of contention that have emerged over the past few years in this field is whether it is actually legal to tie the insurance premiums of an employee to the actual health outcomes of the employee. This is because most employees complain that they already pay a lot of money in the form of premiums, yet most of them they rarely use the benefits of the premiums. Some insurance firms allow group plans to discount their premiums in exchange for sticking to the programs of health promotion and preventing diseases.
The Affordable Care Act
The Affordable Care Act 2010 allows the employees of a company to tie their incentives to a given health factor. There are five basic requirements for this to be effected. These include the following:
- The amount of rewards and penalties should not be more than 20% of the total cost of coverage for the employees
- The program needs to be designed to promote health and wellness.
- Members should qualify for the program at least once a year.
- There should be another option for those who can join the program and this should be communicated.
- Taking these steps is a sure way of ensuring there is productivity in the workplace, because employees will be healthier.
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