Lifestyle Incentives Can Lead Employees Toward Healthier Habits
Though health care cost increases have moderated, they still are substantial, projected for employers at 9.9% in 2006, according to human resources consultant Hewitt Associates. Employees, too, have been stung by the rising cost of health care, seeing their contributions nearly double since 2002, according to Hewitt research. Along with premium contributions, employees have experienced increases in their out-of-pocket costs, in the form of higher copayments, coinsurance rates and deductibles. Overall, employees’ total health care costs—including their premium contribution and out-of-pocket costs—will rise 12% to $3,136 for 2006, Hewitt projects.
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Most Employers Need to Provide Medicare Part D Creditable Coverage Notices
Though most employers do not provide prescription drug benefits for their retirees, most nonetheless will be impacted by a particular provision of the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MAA)—namely, the requirement that individuals who are eligible for Medicare prescription drug coverage be notified as to whether they have creditable coverage under their employer’s plan.
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Rising Incidence of Disability Is a Good Reason to Examine Current Coverage Offering
The incidence of disability among U.S. workers is rising. In a survey conducted in 2003, Mercer Human Resources Consulting found that 32% of surveyed employers reported an increase in short-term disability (STD) incidence rates and 22% reported an increase in long-term disability (LTD) rates over a two-year period.
Many causes contribute to these increases—
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A Look at HIPAA: Can Health Plans Offer Rewards or Discounts for Employee Participation in Wellness Programs?
A closer look at the Health Insurance Portability and Accountability Act of 1996 (HIPAA) shows that its nondiscrimination provisions do not prevent health plans or insurers from putting wellness incentives in place that encourage participants to take part in health promotion and disease prevention programs. However, HIPAA’s provisions do prohibit plans from imposing a penalty for unhealthy activities.
According to HIPAA, wellness programs offered to employees must be reasonably designed to promote good health and disease prevention. For instance, a program that offers reduced premiums to participants who achieve a cholesterol count below 200 is perfectly acceptable.
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