Employers are finding more and more ways to keep the rising costs of medical insurance premiums under control. They are constantly looking at ways to mitigate costs so as to be able to offer attractive packages to potential employees. One of the ways that companies are able to do just that is by implementing wellness programs for their employees.

What is a wellness plan? In the most basic sense, a wellness plan is a benefit or incentive offered by an employer to its employees to live in such a way as to minimize medical insurance claims. It has the added benefit, of course, in that following a wellness plan will also increase the employee’s life expectancy.

Government Interference

In some cases, however, the incentives that companies are offering to their employees may run afoul of government regulations. In fact, over the past few years there have been a steady stream of new rules governing these kinds of benefits.

Take, for example, a company that offers to help employees quit smoking and provides them a cash incentive for doing so. The government wants to make sure that workers are being treated “fairly” in wellness programs, so they are mandating that companies create ways for non-smokers to earn the same rewards.

Help or Harm?

There is a danger, in some cases, of offering rewards for specific wellness activities. One company in Wisconsin decided to provide a cash benefit to people who could quit smoking and stay smoke free for a certain amount of time. They found that people would start smoking and then quit so as to get the benefit.

On the other hand, some wellness programs offer rewards for merely attending. These are the programs offered by companies accused of being “unfair.” So, employees can participate in a seminar or read some literature, and then continue to smoke, drink, eat fatty foods, or not exercise.

Lower Premiums

In many cases, a medical insurance company will give a discount on their group coverage to a company that implements wellness programs. For that reason alone, it can be beneficial to a company.

The key is whether or not those benefits are passed along to employees, and to whom. If the only ones who get a discount are the ones who quit smoking, for example, there will be cries of “unfair.” Offering the discount to everyone may not deter the kinds of bad habits. Either way, it’s likely someone is going to complain.