If cost is the only factor preventing your business from implementing a wellness program, a bill currently working its way through the legislative process could remove that excuse.
The Healthy Workforce Act would provide a tax credit for businesses that incorporate sound employee health management practices by offering effective and comprehensive wellness programs.
“The act would significantly ease the barriers for both small and mid-sized employers to invest in these programs,” says Sally Stephens, president of Spectrum Health Systems.
Smart Business spoke with Stephens about how the Healthy Workforce Act would affect businesses and how companies could use it to improve the overall health of their workforces.
What is the significance of the Healthy Workforce Act?
The Healthy Workforce Act, if passed, would amend the Internal Revenue Code to allow employers a 50 percent tax credit for the cost of providing employees with a qualified wellness program.
A qualified wellness program is one that is certified by the Secretary of Health and Human Resources. To be qualified, it must consist of the following elements: health awareness and education components, a behavioral change component and a supportive environment component. The act would also require the Secretary of the Treasury to institute an outreach program to inform businesses of the availability of such a wellness tax credit.
On April 2, 2009, the bill was referred to the Senate committee, where it was read twice and referred to the Committee on Finance.
How would the Healthy Workforce Act affect employers?
Today’s negative health trends have a profound impact on the profits and competitiveness of United States businesses. The average employer’s medical costs increased 72 percent between 2000 and 2006. A bill such as the Healthy Workforce Act would provide the financial incentive for employers to implement effective wellness programs that result in improved health and stabilized claims trending.
How does the 2009 version of the act differ from the previous 2007 version?
The 2007 bill was read twice, referred to the Committee on Finance and never became law. In an effort to make wellness and prevention a part of the national discussion on health care reform, some U.S senators and representatives reintroduced the legislation, which aims to fight the growing prevalence of chronic disease and improve the quality of life for the 135 million full-time and part-time workers in the U.S. The 2009 act would provide a tax credit to companies that offer effective and comprehensive wellness programs. Businesses would receive a tax credit for incorporating sound employee health management practices into their plan design, and, as an added benefit, the act would significantly ease the barriers for both small and mid-sized employers to invest in these programs.