Health Care Reform

Wellness Incentives

Health Care Reform includes two provisions designed to help employers sponsor wellness programs.

HIPAA Wellness Incentives

Under the HIPAA wellness rules, an employer may currently offer financial incentives to participate in health-contingent wellness programs up to 20% of the cost of health plan coverage.  Beginning in 2014, the 20% cap is increased to 30% with an additional 20% available to reward compliance with tobacco use cessation programs (or a grand total of 50% for those programs).

Small Employer Wellness Grants

Health Care Reform authorizes $200 million to provide grants to small employers to establish “comprehensive workplace wellness programs.”  The grant program is available from 2011 through 2015.  An eligible small employer must employ less than 100 employees who work 25 hours or more per week and must not have provided a workplace wellness program on March 23, 2010. 

A comprehensive workplace wellness program must include the following:

  • Health awareness initiatives (including health education, preventive screenings, and health risk assessments);
  • Efforts to maximize employee engagement (including mechanisms to encourage employee participation);
  • Initiatives to change unhealthy behaviors and lifestyle choices (including counseling, seminars, online programs, and self-help materials); and
  • Supportive environment efforts (including workplace policies to encourage healthy lifestyles, healthy eating, increased physical activity, and improved mental health).

HHS is required to develop specific criteria for qualified programs and the application process.

+ Expand

Wellness Incentive Hot Topics & FAQs

American Fidelity Assurance Company does not provide tax or legal advice.

ESB-835-0713

Next Steps

Sign up for Updates

VIP Notification Service

We provide a VIP Notification Service to keep you informed as new Health Care Reform rules are issued.
Click here to sign up.

You’re Not Alone

We understand that these new requirements come at a time of strained budgets. 
Learn how our services and products can help.

Employer Toolbox

Health Care Reform checklists, worksheets, sample employee communications, and other solutions!
Learn More

Quick Access

  • Your Account

    View your policies, download forms and check the status of your claims - all in one spot!

  • Claim & Flex Forms

    1Select the forms you need:

    Flex Benefits
    Accident Benefits
    Cancer Benefits
    Critical Illness
    Disability Benefits
    Hospital Indemnity
    Life Benefits
    Medical (GAP)
    HRA Benefits

    2Select your state & industry:

  • Check Claim Status
  • FAQs

    Please select a category or type your question in the box below.

    Keyword Search
    All FAQs