Wellness Program - financial incentives

[Guest calcu]

A client would like to implement a weight loss incentive program. The client is proposing to reimburse employees (and covered dependents) for the cost Weight Watchers meetings upon reaching certain Weight Watchers milestones. Weight Watchers recognizes the following milestones:

5 lbs

10% weight loss

Every 10 lbs thereafter

Goal Weight

Maintaining weight for 6 weeks

After successfully attaining the above milestones, the client will reimburse the employee for the cost of WW meetings through the milestone.

I do not see a HIPAA issue, but wanted some other input.

Also, I believe such reimbursements would be taxable compensation, other thoughts?

Thanks

[Guest calcu]

After further thought, I think there is a HIPAA issue with respect to requiring individuals to meet the "milestones." Wouldn't the client have to incorporate reasonable alternatives for those who were not able to meet the milestones?

[Guest chloe]

Yes, I agree. The Bona Fide Wellness rules would require there to be an alternate means of achieving the reward. This is because some people may not be able to achieve the goals due to illness. For example, losing weight too quickly can be a problem for persons with certain other medical conditions such as diabetes. The weight loss has to controlled more closely. Those individuals can't be punished because they have no way to achieve the reward.

[JanetM]

Just to play devil's advocate, what about those who now maintain a healthy weight. What incentive are you giving them to keep it?

[oriecat]

Yes, I agree. The Bona Fide Wellness rules would require there to be an alternate means of achieving the reward. This is because some people may not be able to achieve the goals due to illness. For example, losing weight too quickly can be a problem for persons with certain other medical conditions such as diabetes. The weight loss has to controlled more closely. Those individuals can't be punished because they have no way to achieve the reward.

I don't understand. You're saying that these people would need an alternate means because they couldn't reach the goal, but then that they might just take longer to reach the goal due to needing to lose weight slower. If they can still lose the weight, then they can still reach the goal, so no alternate should be needed for them, unless there was a timeframe placed on the goals, which isn't stated.

[Guest chloe]

Usually the Bona Fide Wellness Program puts a time limit on achieving the goal (e.g., lose 20 pounds in 6 months). The regulations require an alternate means of achieving the reward. For example, if a plan has smoker vs. non-smoker rates, they have to have a Bona Fide Wellness Program for smoking cessation. The reward (in this case lower rates), must be awarded based upon participation in the smoking cessation program. It can't require the person to actually quit smoking. Crazy, I know. But them's the rules!