WELLNESS INCENTIVES

Wellness Incentives

The final rule for incentives for nondiscriminatory wellness programs identifies standards for wellness programs offered by group health plans, both grandfathered and non-grandfathered. Issued by the U.S. Departments of Labor, Health and Human Services and the Treasury in May 2013, the rule also increased the allowable incentive for health-contingent programs from 20 percent to 30 percent of the cost of coverage.

The final rule is designed to give every wellness program participant the opportunity to receive the full amount of any reward or incentive, regardless of any health factor. Wellness programs are divided into two categories and requirements of each are outlined in the document below.

The rule became effective for plan years beginning on or after Jan. 1, 2014.