Because most adults spend a large number of their waking hours at work, employers can play an important role in helping them stay healthy.
By introducing wellness programs and rewarding employees for maintaining a healthy lifestyle, employers can help employees lose weight, lower stress levels and improve physical fitness. And for employers, that can mean increased productivity, decreased presenteeism and lower health care costs, according to Marty Hauser, president of SummaCare, Inc.
“Intuitively, we all know that we need to make changes and lead a healthier lifestyle — no one wants to be overweight, unhealthy, sick or absent from work,” says Hauser. “But we also know that it is hard to make changes on our own, so having the support of your employer and co-workers is an important aid in helping to lead a healthier lifestyle.”
Smart Business spoke with Hauser about how employers can create a healthier workplace and what they need to know to comply with the law.
How far can employers go to inform employees about wellness?
Employers can provide information and resources to employees but should start slowly. Many employees may be uncomfortable with or skeptical about their employer showing an interest in their lifestyle, so general education on exercise or nutrition can be a good starting point to ease into the conversation.
The important thing is to get information to employees and get them to buy-in to the concept of wellness. One way to create that buy-in is to get select employees involved in the planning process for the program so they get excited about it and share that excitement with their co-workers. Employers have the best chance of changing behaviors when employees feel invested in the plan and are motivated to make changes in their lifestyle.
Employers also have the right to ask employees to fill out health risk assessments and undergo health screenings, as long as the results aren’t tied to a demand to meet certain criteria and are not used to deny benefits or determine individual premiums or employment status.
What federal regulations does an employer need to be aware of when instituting a wellness program?
Under the Health Insurance Portability and Accountability Act, employers are prohibited from charging employees in the same situations different premiums based on health factors, unless the company has a bona fide wellness program.
Under a bona fide wellness program, HIPAA allows for two types of rewards for employees. Rewards that are not conditioned on the achievement of a particular standard must be made available to all participants in the program. These rewards include incentives for diagnostic testing that reward for the employees’ participation in the program (not the results of the tests), reimbursement for smoking cessation (regardless if the program results in the employee quitting) and reimbursement for fitness center membership.
Rewards that are conditioned on meeting certain goals must meet additional requirements. The reward must not exceed 20 percent of the employees’ cost of coverage; the program must be designed to prevent disease or promote a healthy lifestyle; it must give employees a chance at least once a year to qualify for the reward; the reward must be made available to similarly situated individuals; and the program must provide an alternative standard for those not reasonably able to meet the standards.
Under HIPAA, an employer cannot deny an employee coverage based on claims experience, genetic information, health status, physical or mental condition, use of health care services or disability.
Also, under the Americans with Disabilities Act, employers can’t ask about any disabilities that an employee may suffer from or require exams relating to disabilities. However, they must make accommodations for disabled employees participating in the company’s wellness program. For example, if an employer offers an incentive to employees for walking five miles a week, they must make a comparable offer to an employee who cannot walk.