The Role of Incentives in Health - Closing the Gap

Incentives motivate individuals to act in a certain way. Incentives are everywhere and in everything; they are woven into the very fabric of our lives. To address the issue of spiraling health care costs, incentive programs must be put into place to discourage the behaviors driving the growth of these costs. With nearly 75% of all health care costs associated with chronic diseases, most of which are preventable, the value of incentives must be recognized in policy and practice. Incentives can drive behavior, help realign the system, and improve the nation's health. Behavior change incentive programs have been successful for some large organizations in dramatically controlling health care costs when incorporated into an integrated plan redesign. It is necessary to both understand the types of incentives that are impactful and integrate these incentives into the plan design, the workplace environment, retail, education, and communities in order to impact the health of our nation.