Wellness incentives

Is It Necessary to Incent Organizations to Initiate Employee Wellness Programs?

Wellness incentives may seem like an effective way to get workers excited about Employer Wellness Program – but is it wise?

This helps and encourages organizations to understand the importance of maintaining a healthy employees, not only for the welfare of its workers, but as well as the welfare of the business bottom line … then, yes, it could be necessary.

Tax Breaks as Wellness incentives

In 2007, two senators decided to band together to create the “Healthy Workforce Act.” This act is designed to encourage organizations to keep workers healthy and prevent disease. The senators believed that having a country focused on “well care” versus “sick care” would decrease the overall costs of medical care for everyone. They decided to start with America’s employees.

The legislation, introduced by Oregon Senator Gordon Smith and Iowa Senator Tom Harkin, states that companies would receive a Wellness incentive – a fifty percent tax credit – if they offer to their workers a Employer Wellness Program that meets the following criteria:

1) A health education and awareness component, which could include Health Risk Assessments (HRAs) and Health Testings.
2) A behavioral change component – such as counseling, seminars, or self-help materials to empower workers to lead healthier lifestyles.
3) A supportive environment component – including offering meaningful incentives to taking part in workers, such as a reduction in medical premiums or allowing workers to engage in walking Employee Wellness Programs during the workday.
4) The creation of an staff member engagement committee – which would tailor the Employer Wellness Program to the needs of the employees at a particular company.

If this law gets passed, many organizations will be scrambling to offer Employee Wellness Programs in hopes of receiving the Wellness incentives.