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.