EEOC Limits Incentives, Yet Wellness Programs Still Proliferate

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Incentives are a popular way to get employees to engage with wellness programs. But the carrots and sticks employers can use in wellness programs have changed recently, thanks to final rulings from the Equal Employment Opportunity Commission (EEOC) on wellness program incentives.

A recent article in Financial Advisor explored the evolution of wellness programs in light of these EEOC rulings, which limit financial incentives to 30% of the cost of an individual’s health plan.

In spite of the limitations imposed by the rulings, wellness programs continue to proliferate. While penalties (sticks) are still used, they are less common than incentives (carrots), according to Jeff Levin-Scherz, north American leader of health management for Willis Towers Watson.

“Relatively few employers use penalties except for tobacco cessation,” Levin-Scherz told Financial Advisor. “Most employers express incentives as a reward rather than a penalty.”

For the complete article in Financial Advisor, click here.

[Photo Credit: Alan O’Rourke on Flickr via Creative Commons 2.0]

This post appeared on the OneExchange Blog on December 8th, 2016 and can be viewed there by clicking here.
Willis Towers Watson is a leading global professional services company and operator of the nation's largest private Medicare exchange. Willis Towers Watson OneExchange is the industry’s only holistic private exchange solution, offering exchange options for U.S. employers and their active, part-time and retired workers.