Catherwood LibraryILR School

A final ruling by the Obama administration on the Affordable Healthcare Act will allow employers to increase incentives for employees who participate in wellness programs. Beginning on January 1, 2014, employers will be able to reduce out of pocket costs of healthcare for employees who ?opt in? by up to 30 percent of their premium and up to 50 percent for programs designed to reduce tobacco use. The new rule also stipulates that employee-sponsored health plans must provide ?a reasonable alternative standard? to create a path for employees who fail to meet the initial standards to collect benefits, such as attending a smoking cessation program. Critics of the rule argue that it could defeat the purpose of the legislation by lowering premiums for employees who participate in wellness programs even if their health is not improved.