Kevin Eberly's Blog | Confronting America's Obesity Epidemic

Employers working to better the health of their company faced a recent setback. On April 30 the IRS ruled that most wellness programs cannot be included in minimum healthcare coverage, meaning requiring employees to participate in company-sponsored health programs won’t be as simple as previously thought.

Under the Affordable Care Act, employers are required to offer a minimum benefits coverage for full-time employees, which includes a healthcare package, or pay a steep fine if they choose to forgo providing coverage. The only wellness program that will qualify for the minimum benefits package is smoking cessation programs.

The IRS cited the potential for many wellness programs to be discriminatory, putting sick workers at a disadvantage for lower premiums, as the reason for excluding wellness programs from the minimum benefits package.

It’s an unfortunate ruling considering more than two-thirds of adults in the U.S. are overweight or obese, which, like smoking, is a condition that needs to managed over time and is costing employers thousands of dollars per year.

Managing obesity requires a strong support system, and organized wellness programs provide that. It takes time, dedication, and motivation, which, especially when in the form of cash, can be very effective.

Although I am disappointed with the ruling, it does not mean wellness has no place in the office.

It’s worth the investment to provide wellness programs to your employees—financially and for the success of your company—even if it means just taking a few minutes out of the day to walk around the office and assess the overall health of your workers.

Interact with your employees. Listen to their concerns. Maybe an at-risk individual is scared to make a change in his or her habits. It’s understandable; change isn’t easy. However, listening to your employees can help you determine a wellness program that will attract the most participation. For example, if the majority of your employees say they don’t have the time for wellness, you can consider making a wellness program convenient, potentially making it a part of the workday to encourage higher participation.

Make it a fun part of your company’s culture. Studies show financial incentives encourage healthy behaviors. Consider a little friendly corporate wellness competition. Have employees agree to sign up for a wellness program and offer small rewards at the end of each week for a certain period of time. It can even be as small as $10 gift cards, but the camaraderie and support from the workplace will motivate a larger number of people to participate. The employee that loses the highest percentage of body fat, for example, will receive a larger financial reward.

Educate your employees. An AP-NORC Center survey of 1,011 adults nationwide found about half of people think their weight is healthy despite statistics that show two-thirds of adults in the U.S. are overweight or obese. Consider hosting health seminars as part of on-the-job training and have a wellness program accessible to begin immediately following a lecture. If employees don’t realize they need to make a change, they won’t. You have to bring the issue to the forefront of your employees’ minds.

Some employers have sticker shock when they see the cost of workplace wellness. Understandable, it’s costly, but let’s look at the bigger picture: Studies show for every dollar spent on wellness programs, medical costs fall an average of $3.27, and costs for days that employees are absent fall $2.73. 

It’s easier to understand when you crunch the numbers: Workplace wellness programs are not costing you, but they are actually saving you money. I’ve stressed the importance of obesity prevention, and employers are in a powerful position—they have a say in the health of their employees. I believe that incentives, especially when coupled with leadership from the top, allow employees to understand their employers’ priorities. 

In 2014, the Affordable Care Act will expand employers’ ability to reward or penalize workers who participate in and meet the goals of various wellness programs. When there is change, particularly in healthcare, there are questions. How will this impact employee plans? 

Many expert consultants advocate incentives early on as a way to encourage employees to make proper wellness choices that can have a positive impact on their longer term health and well-being and result in lower future healthcare-related costs. In the future, employees might be choosing health plans from a menu of options and have to pay for the difference of the cost of the plan and a subsidy provided by their employer. If this is the way things unfold, it would be in the best interest of employees to focus on wellness so they can choose cost-efficient health plans in the future. 

Of course, in line with most things in life, providing incentives and penalties have pros and cons. What works well for one employer may not work well for another. Here, I will acknowledge both sides, and let you decide which program will resonate best with your company.  

THE PROS

Incentives can make people happy. By covering the cost of a wellness program, or even just covering a portion of the cost, employers have the ability to take the cost burden of the most efficient programs off of employees’ shoulders. Investing in clinically-proven wellness programs fosters healthier, more productive, and happier employees.   

Financial rewards may generate weight loss results. Studies indicate programs that use financial rewards have positive results and may be effective in producing weight loss. Valued incentives lead to more participation. This could include gift cards, bonuses, or awards of different amounts based on various levels of success. 

Penalties, such as higher health insurance premiums if an employee does not meet the company’s goals, may motivate employees to stick with it. On the contrary, you can also penalize employees who do not meet the company’s wellness standards. In the perfect world, everyone would be healthy simply because they know it’s good for them. But that’s not always the case. Employees are aware that health insurance is costly, and for some, taking money out of their pocket is just the push they need to achieve weight loss. 

Contests and competitions can boost morale and encourage participation. Friendly competition can go a long way. If you work in a competitive environment, it may be beneficial to make wellness a competition. Plus, it puts everyone in the same boat, so it can make sticking to a weight loss plan fun, encouraging, and supportive. 

A wellness program that demands results equals a healthy and wealthy company. Making wellness a priority by providing incentives can attract the best employees to your company. It shows you care about the well-being of your employees, which will in turn make top prospects want to work for you. 

THE CONS

It can discourage employees from participating in the company’s health benefits. For some, the idea of required participation in a wellness program is intimidating. If an employee doesn’t reach the company’s goal and money is involved, it can potentially add stress. Participation then becomes unaffordable and an employee may seek health benefits elsewhere. 

Behavioral differences. We come in different shapes and sizes, and that’s OK. Health is made up of numerous factors, and some are out of a person’s control. For instance, some people are genetically predisposed to high blood pressure, high cholesterol, and even diabetes, and it is important to take these factors into consideration when developing an effective wellness program.