HR Support on Wellness & Prevention Programs

Editor's Note: Employers use wellness initiatives to reduce health care costs.

Tracy MorleyOverview: Employers use wellness programs to supplement their employee benefit programs in an effort to prevent illness and lower health care costs by motivating employees to adopt and maintain healthful behaviors. Studies have shown that employers can benefit by implementing and maintaining an employee wellness program. Over time, benefits reported by employers include reduced health care related costs, increased productivity, reduced absenteeism, higher morale and increased employee retention.

The type of wellness program offered depends on a variety of factors including an employer's size, culture, resources and industry. Some programs are simple and inexpensive to implement and manage, while others are more complex and require substantial financial resources.

Most wellness programs are aimed at combating preventable conditions such as obesity, diabetes, heart disease and lung cancer. There are many types of wellness programs an employer can choose based on budget, employee demographics, location and health goals. Common examples include:

  • Weight loss programs;
  • Tobacco cessation programs;
  • Free flu shots;
  • Health risk assessments and screenings; and
  • Exercise competitions.

Employer wellness programs must comply with a variety of federal and state laws. At the federal level, wellness plans have to comply with the Health Insurance Portability and Accountability Act (HIPAA), the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).

Trends: Affordable Care Act provisions that apply to plan years beginning on or after January 1, 2014, expand an employer's ability to reward employees for participating in wellness programs.

Tracy Morley, SPHR, Legal Editor

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HR guidance on workplace wellness programs and the impact to health care costs.