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Penalties, incentives and wellness programs after HIPAA.

B Newman1

  • 1Aon Consulting, Newburyport, MA, USA.

Employee Benefits Journal
|May 27, 1999
PubMed
Summary
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Employers should review wellness program incentives post-HIPAA, focusing on positive health approaches. Assess current programs for effectiveness and consider alternatives like health fairs and education for better employee lifestyle adoption.

Area of Science:

  • Health Policy
  • Occupational Health
  • Behavioral Science

Background:

  • The Health Insurance Portability and Accountability Act of 1996 (HIPAA) impacts employer-sponsored wellness programs.
  • Employers utilize incentives and penalties to encourage employee healthy lifestyles.
  • Existing wellness program structures require careful evaluation following HIPAA.

Purpose of the Study:

  • To advise employers on reviewing their wellness program designs after HIPAA.
  • To assess the effectiveness of current employer incentives and penalties for health behaviors.
  • To recommend alternative, positive approaches for promoting employee well-being.

Main Methods:

  • Analysis of employer wellness program components, including incentives and penalties.

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  • Evaluation of the efficacy of discounts, exclusions, and existing wellness initiatives.
  • Consideration of alternative strategies such as health fairs and educational programs.

    • Main Results:

    • Current incentive/penalty structures may not be optimally effective.
    • A shift towards positive reinforcement is suggested for better outcomes.
    • Health fairs and education programs are presented as viable alternatives.

    Conclusions:

    • Employers must critically assess their wellness programs post-HIPAA.
    • Positive, educational approaches may yield superior results in promoting healthy lifestyles.
    • Strategic program redesign is essential for maximizing employee health benefits.