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ARTICLE · 09 MAY 2018

What Now For Wellness?

If you're an employer trying to sponsor a wellness program for 2019, then the recent kerfuffle between the AARP and the Equal Employment Opportunity Commission (EEOC) affects you.

United StatesEmployment and HR

If you're an employer trying to sponsor a wellness program for 2019, then the recent kerfuffle between the AARP and the Equal Employment Opportunity Commission (EEOC) affects you.

The AARP has challenged the EEOC's wellness program regulations on the grounds that the EEOC's permissible wellness incentive of up to 30 percent of the cost of employee-only coverage may result in a wellness program not being voluntary.

As background, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) prohibits discrimination in plan eligibility or premiums based on health-related factors, but has exceptions for certain wellness programs. The Affordable Care Act (ACA) expanded those exceptions to allow sponsors to offer incentives of up to 30 percent for most wellness activities (and up to 50 percent for quitting smoking).

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