One Bright Spot in the Health Care World: Wellness Programs

by Robert Falke, Benefits Consultant

Health Care Reform is still full of uncertainty and is making many employers nervous. Some, however, are taking advantage of one bright spot: wellness.

 
As the Department of Health and Human Services (HHS) pushes out new regulations from the Patient Protection Affordable Care Act (PPACA) and we inch closer to the implementation of mandated State Health Exchanges, employers are, rightfully, concerned about their health care costs.  Without firm confidence of the exchange system, some employers are choosing to address costs by helping change employee’s habits and improving their health.

The PPACA allows employers to offer incentives to employees who participate in wellness plans and/or meet certain health standards.  While the current incentive cap is 20 percent of the cost of coverage, the law increases the reward amount beginning in 2014, when rewards may be up to 30 percent of the employee’s cost of coverage.    The participating employees see an immediate “carrot” in the form of lower monthly contributions.  The employer’s benefit will accrue over time as health claims and related expenses decrease with improved employee health. 

Now is a prime time for companies to consider wellness initiatives. Building a wellness plan, however, takes some planning and follow-through to get good return on your investment.  One important decision is how you will structure your incentive.  Some questions to ask:

• Are you going to use a carrot or a stick approach?
• What wellness attributes will be measured?
• How are you going to communicate the plan and incentive to your employees?
• How are you going to keep your employees engaged long term? 

SRA Benefits has a history of developing plans with proven results in bending the cost curve and ultimately affecting the cost of the medical plan.  We help clients take full advantage of the PPACA regulations and develop a results-based incentive program that can not only impact medical claim costs, but can impact employee satisfaction.  Aren’t those bright spots worth investigating?