HHS rules to encourage wellness programs

The Obama administration released new regulations Tuesday to encourage participation in employer-based wellness programs as a way to drive down healthcare costs.

The rules came as part of a package of regulations under the Affordable Care Act, including requirements that insurance companies cover people with pre-existing conditions, as the Health and Human Services (HHS) works to implement the law.

The less-familiar wellness rules will increase the maximum permissible reward for workers who participate in programs that encourage certain health outcomes, such as smoking cessation or weight loss. 

Under the proposed rules, these "health-contingent wellness programs" will now yield a reward of up to 30 percent of the cost of health coverage rather than 20 percent.

Workers involved in smoking cessation programs will be eligible for as much as a 50 percent discount, HHS said. 

The proposed rules also mandate that wellness programs provide alternative means of qualifying for rewards for people with special medical conditions.

Wellness programs are on the rise around the country.

According to Mercer, the human resources consulting firm, the initiatives are now employers' "top long-term strategy" for controlling health spending by encouraging employees to maintain better health. 

Mercer's annual survey, released Nov. 14, found a sharp increase in the use of incentives or penalties to encourage employee participation in wellness programs.

The firm also noted that incentives to participate in wellness programs have become "more substantial," the most common being a reduction in the employee's premium contribution.

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